JAS KAR TECHNO PVT LTD, Ranchi V. ITO WARD-1(4), Ranchi

ITA 60/RAN/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7777 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 08-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: R K KAUSHAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.60 /RAN/201 7 ASSESSMENT YEAR : 2012 - 2013 JAS KAR TECHNO PVT LTD., 29 - 30, 2 ND FLOOR, A.C.MARKET, CHURCH COMPLEX, MAIN ROAD, RANCHI. VS. ITO, - 1(4), RANCHI PAN/GIR NO. AACCJ 3487 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: SHRI R.K KAUSHAL, CA REVENUE BY : SHRI P.K.MONDAL, JCIT DATE OF HEARING : 22 /05 / 201 8 DATE OF PRONOUNCEMENT : 23 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY TH E ASSESSEE AGAINST THE ORDER OF CIT(A) - RANCHI , DATED 16.11.2016 , F OR THE ASSESSMENT YEAR 2012 - 13. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. WHETHER THE AO WAS JUSTIFIED IN DISALLOWING A SUM OF RS.1329344/ - ON ADHOC BASIS @ 3% OF OTHER EXPENSES ON WRONG APPRECIATION OF THE FACTS THAT THE ASSESSEE DENIED TO PRODUCE THE BILLS AND VOUCHERS. 2. WHETHER THE AOP WAS JUSTIFIED IN IGNORING THE PLE A OF THE ASSESSEE TO PRODUCE SPECIFIC BILLS AND VOUCHERS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUND THAT THE ASSESSE E HAS DEBITED RS.4,33,11,459/ - UNDER THE HEAD OTHER EXPENSES. 2 ITA NO.60/RAN/2017 ASSESSMENT YEAR: 2012 - 2013 THE ASSESSEE SHOWED ALL BILLS AND VOUCHERS MAI N TAINED IN TALLY BUT BEFORE THE ASSESSING OFFICER , THE ASSESSEE ALSO TOOK PLEA THAT THE BRANCHES OF THE ASSESSEE WERE IN DIFFERENT PLACES . HENCE, IT WAS DIFFICULT TO PRODUCE BILLS & VOUCHERS PHYSICALLY. FROM THIS, THE ASSESSING OFFICER INFERRED THAT I N ABSENCE OF PHYSICAL VERIFICATION OF VOUCHERS, POSSIBILITY OF EXCESS CLAIM OF EXPENSES COULD NOT BE DENIED AND, THEREFORE, DISALLOWED 3% OUT OF THE TOTAL EXPENSES AND ADDED RS.13,29,344/ - TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL, THE CIT(A) ALSO CONFI RMED THE ACTION OF THE ASSESSING OFFICER FOR THE REASON THAT THE ASSESSEE FAILED TO PRODUCE EVIDENCE BEFORE THE ASSESSING OFFICER. 5. BEFORE US, THE ONLY ARGUMENT OF LD A.R. OF THE ASSESSEE IS THAT THE VOUCHERS ARE NUMEROUS AND VOLUMINOUS. THE ASSESSING O FFICER HAD NOT SPECIFIED WHICH VOUCHERS HE WANTED TO VERIFY AND THAT IF HE COULD HAVE REQUIRED SO, THE ASSESSEE COULD HAVE PRODUCED THE SAME BEFORE HIM FOR VERIFICATION. HE ARGUED THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TO APPEAR BEFORE THE ASSESSING OFFICER AND PRODUCE THE VOUCHERS, WHICH HE WANTS TO VERIFY. 6. LD D.R. DID NOT HAVE ANY OBJECTION TO THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 7. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERUSING THE MATERIALS AVAILABLE ON RECORD, WE FIND THAT THE DISALLOWANCE OF 3% OF THE EXPENSES 3 ITA NO.60/RAN/2017 ASSESSMENT YEAR: 2012 - 2013 CLAIMED UNDER THE HEAD OTHER EXPENSES WAS MADE L EADING TO ADDITION OF RS.13,29,344/ - IN THE HANDS OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED TO PRODUCE THE VOUCHERS FOR EXPENSES BEFORE THE ASSESSING OFFICER. LD A.R. OF THE ASSESSEE HAS CONTENDED THAT THE VOUCHERS FOR THE EXPENSES ARE NUMERO US AND VOLUMINOUS AND AN OPPORTUNITY SHOULD BE GRANTED TO THE ASSESSEE TO PRODUCE THE VOUCHERS BEFORE THE ASSESSING OFFICER, WHICH THE ASSESSING OFFICER WANTS TO VERIFY. LD D.R. HAS NO OBJECTION AND, THEREFORE, IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION OF THE ISSUE. THE ASSESSEE IS DIRECTED TO FURNISH THE BILLS AND VOUCHERS AS AND WHEN REQUIRED BY THE ASSESSING OFFICE R FOR VERIFICATION. WITH THESE DIRECTIONS, THE APPEAL IS RESTORED TO THE FILE OF THE ASSESSING OFFICER. 8 IN T HE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 23 /05 /201 8 B.K.PARIDA, SPS 4 ITA NO.60/RAN/2017 ASSESSMENT YEAR: 2012 - 2013 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : JAS KAR TECHNO PVT LTD., 29 - 30, 2 ND FLOOR, A.C.MARKET, CHURCH COMPLEX, MAIN ROAD, RANCHI. 2. THE RESPONDENT: ITO, - 1(4), RANCHI 3. THE CIT(A), RANCHI 4. PR. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//