Smt. Parvati Devi, Hazaribagh V. ACIT, Hazaribagh

ITA 64/RAN/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9587 (ITAT-RANCHI)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 29-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: S K PODDAR
• Keywords: Depreciation
• Section: 142(1); 234B; 68

Judgement Text

1 ITA NO. 64 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 64 /RAN/201 6 A .Y. : 20 10 - 20 1 1 SMT. PARVATI DEVI, PROP: M/S KARGIL POINT, NH - 33, NEAR COLLEGE MORE, HAZ ARIBAG V S ACIT, CIRCLE - 2, HAZARIBAG. P AN NO. : A FNPD 4100 Q (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI S.K.PODDAR & DEVESH PODDAR, ADV. REVENUE BY :SHRI P.K.MONDAL , JCIT DATE OF HEARING : 2 5 . 05 .201 8 DATE O F PRONOUNCEMENT : 28 . 05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT ( A ) , HAZARIBAG , DATED 14.01.2016 , FOR THE ASSESSMENT YEAR 20 10 - 201 1 . 2. AT THE TIME OF HEARING, LD. AR OF THE ASS ESSEE HAS FILED REVISED GROUNDS OF APPEAL , WHICH READS AS UNDER : - 1. FOR THAT LD.CIT(A) CONFIRMED THE ADDITION OF RS. 5,50,000/ - BEING THE AMOUNT OF LOAN RECEIVED FROM RAJESH KUMAR DUBEY. IDENTITY OF RAJESH KR. DUBEY STANDS PROVED THE TRANSACTIONS WERE TH ROUGH BANKING CHANNELS AND APPELLANT HAD MANY MORE TRANSACTIONS WITH RAJESH KR. DUBEY DURING THE YEAR. LD.AO ACCEPTED SOME OF THE TRANSACTIONS HOWEVER HE FELT THAT HE IS NOT HAVING CREDITWORTHINESS TO THE EXTENT OF RS. 5,50,000/ - FOR THE REASONS BEST KNOWN TO HIM. LD. CIT(A) CONFIRMED THAT ACTION OF LD. AO. THE ADDITION MADE U/S 68 IS UNJUSTIFIED, ARBITRARY AND ILLEGAL. 2 ITA NO. 64 /RAN/ 201 6 2. FOR THAT LD. CIT(A) CONFIRMED THE ADHOC ADDITION MADE BY ITO BY MAKING DISALLOWANCE OUT OF VARIOUS EXPENSES CLAIMED. APPELLANT CLAIMED EXPENSES UNDER TRAVELLING, CONVEYANCE AND DEPRECIATION ON CAR AND MISCELLANEOUS EXPENSES. THE DISALLOWANCE MADE IS ADHOC AND THERE IS NO JUSTIFIABLE REASON FOR MAKING THE DISALLOWANCE. 3. FOR THAT INTEREST U/S 234A AND 234B SHOULD HAVE BEEN CHARGED ON THE RETURNED INCOME AND NOT ON THE ASSESSED INCOME FOLLOWING THE DECISION OF HON'BLE JHARKHAND HIGH COURT. 4. FOR THAT OTHER GROUNDS IN DETAIL WILL BE ARGUED AT THE TIME OF HEARING. 3 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF PETROL PUMP AND FILED THE RETURN OF INCOME ELECTRONICALLY FOR THE ASSESSMENT YEAR 2009 - 2010 ON 27.09.2010 WITH TOTAL INCOME OF RS. 13,75,279/ - AND THE RETURN OF INCOME WAS DULY PROCESSED U/S.143(1) OF THE ACT AND THE CASE WAS SELECTED FOR SCRUTINY UNDE R CASS. SUBSEQUENTLY, NOTICE U/S.143(2) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE, THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND PRODUCED BOOKS OF ACCOUNTS, CASH BOOK, LEDGER, JOURNAL, VOUCHERS FOR EXPENSES ETC., WHICH WERE TE ST CHECKED BY THE AO AND CASE WAS DISCUSSED . THEREAFTER THE AO COMPLETED THE ASS ESSMENT AND MADE ADDITION U/S.68 OF THE ACT AND ASSESSED TOTAL INCOME AT RS. 19,79,600/ - AND PASSED ORDER U/S.143(3) OF THE ACT, DATED 19.12.2012 . 4 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS THE ASSESSEE ARGUED THE GROUNDS AND REITERATED THE SUBMISSIONS MADE BEFORE THE AO. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF ASSESSEE AND THE FINDINGS OF 3 ITA NO. 64 /RAN/ 201 6 AO, UPHE LD THE ADDITION MADE BY THE AO AND DISMISSED THE APPEAL OF THE ASSESSEE. 5 . AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 6 . LD. AR BEFORE US SUBMITTED THAT THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.5 ,50,000/ - IRRESPECTIVE OF THE FACT THAT THE AMOUNT HAS BEEN RECEIVED FROM MR. RAJESH KUMAR DUBEY, THEREFORE, HIS BANK ACCOUNT AND BANK STATEMENT AND OTHER DETAILS WERE ALSO FILED. LD.AR FURTHER SUPPORTED HIS ARGUMENTS WITH DETAILS OF INCOME TAX R ETURN ACKNOWLEDG EMENT OF RAJESH KUMAR DUBEY AND SUBMITTED THAT THIS AMOUNT HAS BEEN PROPERLY EXPLAINED BEFORE THE LOWER AUTHORITIES. LD.AR FURTHER SUBMITTED THAT THERE IS ALSO AN ADHOC DISALLOWANCE OF 10% CLAIMED IN RESPECT OF TRAVELLING AND CONVEYANCE S AN D PRAYED FOR ALLOWING THE APPEAL. 7 . CONTRA, LD.DR RELIED ON THE ORDERS OF LOWER AUTHORITIES. 8 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, THE FIRST CONTENTION OF LD. AR IN RESPECT OF ADDITION MADE U/S.68 OF ACT AND THIS AMOUNT HAS BEEN PAID BY RAJESH KUMAR DUBEY OUT OF HIS BANK ACCOUNT AND REFERRED TO AT PAGE 6 TO 9 OF THE PAPER BOOK AND TRANSACTION OF LOAN BY CHEQUES AND THE DETAILS OF WHICH WERE ALSO PRODUCED BEFORE THE AO BUT THE AO HAS NOT CONSIDERED THE FACTS PROPERLY. LD. AR SUBMITTED THAT THE IDENTITY OF RAJESH KUMAR DUBEY STANDS PROVED AND THE TRANSACTIONS WERE THROUGH BANKING CHANNELS. CONSIDERING ABOVE SUBMISSIONS OF THE ASSESSEE AND THE FACTS AND CIRCUMSTANCES OF THE CASE 4 ITA NO. 64 /RAN/ 201 6 AND IN THE INTEREST OF SUBSTANTIAL JUSTICE, WE PRO VIDE ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM BEFORE THE AO AND WE REMIT THE DISPUTED ISSUE TO THE FILE OF AO, WHO SHALL VERIFY AND EXAMINE CLAIM OF THE ASSESSEE AFTER CONSIDERING THE DETAILS OF THE ASSESSEE AND AFTER PROVIDING ADEQUA TE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE IN SUBMITTING THE INFORMATION BEFORE THE AO . ACCORDINGLY, THE GROUNDS OF APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 9 . CHARGING OF INTEREST IS CONSEQUEN TIAL, THEREFORE, THE AO IS DIRECTED ACCORDINGLY. 10 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 / 05 /201 8 S D/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 28 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT SMT. PARVATI DEVI, PROP: M/S KARGIL POINT, NH - 33, NEAR COLLEGE MORE, HAZARIBAG 2. THE RESPONDENT ACIT, CIRCLE - 2, HAZARIBAG. 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.