M/s. Prasanna Transport Network Pvt.Ltd, Pune V. Assistant Commissioner of Income-tax, Circle - 4, , Pune

ITA 612/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9859 (ITAT-PUNE)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 20-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 22-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.612/PUN/2019 / ASSESSMENT YEAR : 2014-15 M/S. PRASANNA TRANSPORT NETWORK PRIVATE LIMITED, RAHI SAKH APARTMENT, SINHAGAD ROAD, PUNE 411 052 PAN : AACCP1801F VS. ACIT, CIRCLE-4, PUNE (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-3, PUNE ON 08-02-2019 IN RELATION TO THE ASSESSMENT YEAR 2014-15. 2. THE FIRST GROUND IS AGAINST THE CONFIRMATION OF DISALLOWANCE OUT OF TRUCK EXPENSES. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF TRANSPORTATION. DURING THE COURSE OF ASSESSMENT PROCEEDING S, APPELLANT BY NONE RESPONDENT BY SHRI V.K. SINGH DATE OF HEARING 02-01-2020 DATE OF PRONOUNCEMENT 03-01-2020 ITA NO.612/PUN/2019 M/S. PRASANNA TRANSPORT NETWORK PVT. LTD., 2 THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE DE BITED TRUCK EXPENSES TO THE TUNE OF RS.30,94,165/-. ON BEING CALLED UPON TO SUBSTANTIATE THE EXPENSES, THE ASSESSEE PRODUCED NATIONAL PERMIT EXPENSES AND AUTHORIZATION CERTIFICATES OF GOODS TRANSPORT, WHICH WERE FOUND BY THE AO TO BE PERTAININ G TO OTHER YEARS. THE AO MADE DISALLOWANCE AT 25% OF EXPENSES AT RS.7,73,541/-. THE LD. CIT(A) SUSTAINED TH E DISALLOWANCE. 4. I HAVE HEARD THE LD. DR AND PERUSED THE RELEVANT MATE RIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF THE ASSESSEE DESPITE SEVERAL NOTICES. AS SUCH, I AM PROCEED INGS TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE. IT IS OBSERVED FROM THE ORDERS OF THE AUTHORITIES BELOW THAT THE ASSESSEE C OULD NOT LEAD EVIDENCE TO SUPPORT THAT IT INCURRED TRUCK EXPENSES TO THE TUNE OF RS.30,94,165/-. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OBTAINING IN THE INSTANT CASE, I AM SATISFIED THAT THE LD. CIT(A) WAS JUSTIFIED IN SUSTAINING THE ADDITION OF RS.7,73,541/-, BEING, 25% OF THE EXPENSES. 5. THE SECOND GROUND IS AGAINST THE ENHANCEMENT OF DISALLOWANCE ON ACCOUNT OF LEGAL AND PROFESSIONAL EXPENSES . THE ASSESSEE DEBITED RS.23,91,557/- TOWARDS LEGAL AND ITA NO.612/PUN/2019 M/S. PRASANNA TRANSPORT NETWORK PVT. LTD., 3 CONSULTANCY EXPENSES. IN THE ABSENCE OF THE ASSESSEE FURNISHING THE EVIDENCE TO SUBSTANTIATE THE EXPENSES, THE A O MADE THE DISALLOWANCE AT 20% OF THE EXPENSES AT RS.4,78,311/-. THE LD. CIT(A), AFTER GIVING ENHANCEMEN T NOTICE, ENHANCED THE ADDITION TO RS.14,32,033/- BY CONSIDE RING THE ITEM-WISE EXPENSES. THE ASSESSEE IS AGGRIEVED BY THE ENHANCEMENT MADE BY THE LD. CIT(A). 6. HAVING HEARD THE LD. DR AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS SEEN THAT THE ASSESSEE DID NOT PRO DUCE RELEVANT EVIDENCE BEFORE THE AO AND THE LD. C(IT(A) TO SUBSTANTIATE THE INCURRING OF EXPENSES TO THE EXTENT ENHANCED BY THE LD. CIT(A). IN THE ABSENCE OF ANY FURTHER ELABOR ATION BEFORE THE TRIBUNAL AS WELL, I AM SATISFIED THAT THE LD. CIT (A) WAS JUSTIFIED IN ENHANCING THE ADDITION TO THIS EXTENT. 7. THE LAST GROUND IS AGAINST THE ENHANCEMENT OF THE TRAVELLING AND CONVEYANCE EXPENSES. THE AO DISALLOWED 5% OF THE TRAVELLING & CONVEYANCE EXPENSES ON THE GROUND T HAT MAJORITY PAYMENTS WERE MADE IN CASH WHICH WERE NOT FOUND FULLY VERIFIABLE. THE LD. CIT(A) EXAMINED THE ITEM-WISE DETAILS OF EXPENSES AND MADE ENHANCEMENT AT RS.11,85,41 0/-. ITA NO.612/PUN/2019 M/S. PRASANNA TRANSPORT NETWORK PVT. LTD., 4 8. HAVING HEARD THE LD. DR AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS SEEN THAT THE LD. CIT(A) HAS ENHANC ED THE ADDITION TOWARDS THE EXPENSES WHICH WERE EITHER IN THE NATURE OF PROVISION OR NOT SUPPORTED BY ANY EVIDENCE. IN THE ABSENCE OF THE ASSESSEE PLACING ON RECORD ANYTHING TO THE CONTRARY, I APPROVE THE IMPUGNED ORDER ON THIS SCORE. 9. IN THE RESULT, THE APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03 RD JANUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 03 RD JANUARY, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-3, PUNE 4. THE PR. CIT-2, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.612/PUN/2019 M/S. PRASANNA TRANSPORT NETWORK PVT. LTD., 5 DATE 1. DRAFT DICTATED ON 02-01-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 02-01-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *