M/S MAHAVEER TRANSCARRIES PVT. LTD., JAIPUR V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-7, JAIPUR

ITA 635/JPR/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1463 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 10-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J C KULHARI

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA-@ ITA. NO. 635 & 636/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2013-14 & 2014-15 M/S MAHAVEER TRANSCARRIERS PVT. LTD. HEERA FARMS, DAYARAMPURS, AGRA ROAD, JAIPUR. CUKE VS. THE DCIT, CIRCLE-7, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAHCM 0967 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI MUKESH KHANDELWAL (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI J.C. KULHARI (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 29/08/2018 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT : 04/09/2018 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THESE TWO APPEALS FILED BY THE ASSESSEE ARE AGAINS T THE ORDER OF LD. CIT(A)-3, JAIPUR DATED 08.03.2018 FOR THE ASSES SMENT YEARS 2013- 14 & 2014-15 RESPECTIVELY. THE SOLE GROUND OF APPEA L IN BOTH THE APPEALS IS THE CONFIRMATION OF ADDITION OF RS. 5,00 ,000/- BY THE LD. CIT(A) ON LUMP SUM BASIS. 2. IN A.Y. 2013-14, THE LD. CIT(A) HAS RETURNED A F INDING THAT THE EXPENSES OF PETROL, DIESEL, FREIGHT AND OTHER EXPEN SES ARE NOT FULLY ITA NO. 635 &636/JP/2018 M/S MAHAVEER TRNASCARRIERS PVT. LTD. DCIT 2 VOUCHED AND SOME EXPENSES ARE CLAIMED BASED ON SELF MADE VOUCHERS AND NOT SUPPORTED BY THE BILLS, THEREFORE, THE SAID EXPENSES ARE NOT FULLY VOUCHED. THE LD. CIT(A) HAS FURTHER RETURNED A FINDING THAT DISALLOWANCE OF RS. 15,00,000/- MADE BY THE AO ON T HIS ACCOUNT IS WITHOUT ANY BASIS AND HE HAS FOUND THE SAME TO BE U NREASONABLE. THE LD. CIT(A) HAS FURTHER TAKEN NOTE OF THE FACT THAT THIS IS THE FIRST YEAR OF THE BUSINESS OPERATION OF THE ASSESSEE AND ASSESSEE HAS DISCLOSED NET PROFIT @ 8.99%. THE LD. CIT(A) HAS FURTHER NOTED TH AT THE ASSESSING OFFICER HAS DISALLOWED THE AMOUNT OF RS. 2,00,000/- IN ASSESSMENT YEAR 2015-16. CONSIDERING ALL THESE FACTS INTO ACCOUNT, HE HAS RESTRICTED THE DISALLOWANCE MADE BY THE AO FROM RS. 15,00,000/- TO RS. 5,00,000/- AND NOW THE ASSESSEES IS IN APPEAL AGAINST THE SAI D SUSTENANCE OF DISALLOWANCE OF RS. 5,00,000/-. 3. DURING THE COURSE OF HEARING, THE LD. AR HAS SUB MITTED THAT DISALLOWANCE WAS MADE BY THE AO PURELY ON ESTIMATIO N BASIS WITHOUT BRINGING ON RECORD ANY SPECIFIC DEFECT IN THE VOUCH ERS OR THE EXPENSES INCURRED BY THE ASSESSEE. THE LD. AR HAS FURTHER SU BMITTED THAT ON THE IDENTICAL SET OF FACTS, THE ASSESSING OFFICER HIMSE LF HAS DISALLOWED THE EXPENSES TO THE TUNE OF RS. 2,00,000/- IN THE A.Y. 2015-16, THEREFORE, HE HAS SUBMITTED THAT THE DISALLOWANCE SO SUSTAINED BY THE LD. CIT(A) MAY KINDLY BE REDUCED TO THE EXTENT OF RS. 2,00,000 /- FOR EACH OF THE YEARS UNDER CONSIDERATION. 4. PER CONTRA, THE LD. DR HAS RELIED ON THE FINDING OF THE LOWER AUTHORITIES AND SUBMITTED THAT EACH YEAR NEEDS TO L OOK AT SEPARATELY AND INDIVIDUALLY IN THE LIGHT OF SPECIFIC FACTS AND CIRCUMSTANCES OF THE ITA NO. 635 &636/JP/2018 M/S MAHAVEER TRNASCARRIERS PVT. LTD. DCIT 3 CASE AND THE TREATMENT DONE BY THE AO IN THE SUBSEQ UENT YEAR NEED NOT BE TAKEN AS THE BASIS FOR DELETION OF THE DISAL LOWANCE SO MADE BY THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE AO HAS MADE A LUMP SUM DIS ALLOWANCE OF RS. 15,00,000/- HOLDING THAT SOME OF THE PAYMENTS W ERE INCURRED IN CASH WITHOUT ANY SUPPORTING BILLS/VOUCHERS OR THE P AYMENTS HAVE BEEN SUPPORTED WITH SELF MADE VOUCHERS ONLY AS WELL AS T HE PERSONAL USE OF EXPENDITURE CANNOT BE RULED OUT. THE LD. CIT(A) HAS FOUND THE LUMSUM DISALLOWANCE SO MADE BY THE AO WITHOUT ANY BASIS AN D UNREASONABLE AND HAS REDUCED THE DISALLOWANCE TO RS 5,00,000. T HE REVENUE IS NOT IN APPEAL AGAINST THE SAID DELETION BY THE LD. CIT( A). FURTHER, IT IS NOTED THAT IN A.Y. 2015-16 ON THE IDENTICAL SET OFF FACTS , THE AO HAS ISSUED A SHOW CAUSE TO THE ASSESSEE STATING THAT SOME OF THE EXPENSES WERE DEBITED UNDER THE HEADS PETROL EXPENSES, DIESEL EXP ENSES, TRIP EXPENSES, FREIGHT PAID EXPENSES AND OFFICES EXPENSE S WHICH WERE NOT FULLY VOUCHED AND SOME OF THE VOUCHERS WERE SELF MA DE AND WERE NOT SUPPORTED BY THE BILLS AND HAD MADE A DISALLOWANCE OF RS. 2,00,000/-. IT IS NOTED THAT THE LD. CIT(A) HAS HIMSELF FOUND T HE BASIS ADOPTED BY THE AO AS UNREASONABLE AND THE SAME TIME, HE HAS NO T SPECIFIED THE BASIS FOR SUSTENANCE OF DISALLOWANCE OF RS. 5,00,00 0/-. THOUGH EACH YEAR IS A SEPARATE ASSESSMENT YEAR AND THE FACTS OF EACH YEAR NEEDS TO BE EXAMINED AND INVESTIGATED INDEPENDENTLY, AT THE SAME TIME, WHERE THERE IS NO CHANGE IN THE NATURE OF CLAIM MADE BY T HE ASSESSEE IN EACH OF THE YEARS AND ON THE SAME SET OF FACTS, THE AO I SSUES A SHOW-CAUSE TO THE ASSESSEE AND IN ONE YEAR, MAKES A DISALLOWAN CE OF RS 15,00,000 ITA NO. 635 &636/JP/2018 M/S MAHAVEER TRNASCARRIERS PVT. LTD. DCIT 4 AND IN THE SUBSEQUENT YEAR, MAKES A DISALLOWANCE OF RS 2,00,000, THE SAID APPROACH OF THE REVENUE IS NOT FOUND REASONABL E. IN LIGHT OF ABOVE DISCUSSIONS, WE FIND IT APPROPRIATE TO RESTRI CT THE DISALLOWANCE TO RS 2,00,000 IN EACH OF THE TWO YEARS AND REMAINING ADDITION IS HEREBY DELETED. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSES SEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/09/2018. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 04/09/2018. *SANTOSH VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S MAHAVEER TRANSCARRIERS PVT. LTD. , JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- DCIT, CIRCLE-7, JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE { ITA NO. 635 & 636/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR.