Sh Vishnukant Radhesham Mantri, Jalna V. Income-Tax Officer, Ward-1, , Jalna

ITA 662/PUN/2021

AI Insights

The case involves Shri Vishnukant Radhesham Mantri, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming a disallowance of 60% of certain expenses under section 40A(3) of the Income Tax Act, 1961. The assessee, running a transportation business, had his expenses disallowed by the Assessing Officer as not genuine, primarily because they were made in cash and lacked sufficient documentation. The Tribunal found merit in the assessee's plea to admit additional evidence and remanded the case for a fresh assessment, allowing the assessee to present all relevant details within three opportunities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134328 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 3 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-02-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 02-12-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Set aside
• Section: 40A(3)

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.662/PUN/2021 िनधाᭅरण वषᭅ / Assessment Year : 2014-15 Shri Vishnukant Radhesham Mantri, 52/53, Shri Radhepushpa Kunj, Mahesh Nagar, New Mondha Road, Jalna – 431203. PAN: AEBPM 1193 D V s The Income Tax Officer, Ward-1, Jalna. Appellant/ Assessee Respondent / Revenue Assessee by Shri Nikhil S Pathak – AR Revenue by Shri M.G.Jasnani – DR Date of hearing 23/02/2023 Date of pronouncement 31/03/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], Delhi dated 30.09.2021 emanating from the assessment order dated 26.12.2016 under section 143(3)of the I.T.Act, 1961 for A.Y.2014-15. The Assessee has raised the following grounds of appeal: “1. On the facts and in the circumstances of the case, the Id CIT (Appeals) erred in confirming 60% of the disallowance made by the ITA No.662/PUN/2021 Shri Vishnukant Radhesham Mantri [A] 2 AO invoking section 40A(3) of the I.T. Act,1961. The Id CIT (A), NFAC, Delhi did not appreciate that after deleting 40% of payments from each disallowable item as considered by the Id AO, the disallowance would not be liable to be made in almost 95% of the items since the amount comes below the threshold limit of Rs.35,000/-. The entire addition may be deleted and orders of lower authorities set aside as bad in law. 2. The order of the Id CIT (A) may be held as arbitrary applying thumb rule and cancelled or appropriate order granting relief may be passed. 3. The appellant craves leave to add, amend, alter or delete and furnish evidence necessary at the time of hearing.” 2. Brief facts of the case are that the assessee filed return of Income on 30/11/2014 declaring total income at Rs.11,99,430/-.The case of the assessee was selected for scrutiny. The assessee is running a proprietary concern called Shri Devendra Roadline which is engaged in the business of transportation. The Assessing Officer(AO) in the assessment order disallowed expenses of Rs.1,06,83,000/- as not genuine. These expenses were made in cash, and assessee could not submit any details during the assessment proceedings. ITA No.662/PUN/2021 Shri Vishnukant Radhesham Mantri [A] 3 3. Aggrieved by the order of the AO, the assessee filed appeal before the Ld.CIT(A) who upheld the order of the AO. Aggrieved by the order of the Ld.CIT(A), the assessee filed this appeal. Submission by Ld.Authorised Representative of the Assessee: 4. Ld.AR filed a paper book. The Ld.AR filed application for admission of additional evidence. He pleaded that the assessee could not submit these documents due to failure of his consultant(ITP) and due to untimely death of assessee’s father. Ld.AR submitted that earlier the business was looked after by assessee’s father who expired on 2/11/2013 i.e. during the year under consideration. Ld.AR took us through the Profit and Loss Account to explain that total receipts were Rs.4,12,31,575/- and expenditure claimed Rs.3,94,88,042/-, thus, showing Gross profit of 4.4%. Ld.AR filed list of expenditure made in cash and the party’s name as additional evidence. He also filed copies of affidavit of transporters as additional evidence. Ld.AR pleaded that the additional evidence kindly be admitted. Submission of DR : 5. Ld.DR relied on the order of the AO. Ld.DR submitted that the assessee failed to prove that the expenditure were genuine. ITA No.662/PUN/2021 Shri Vishnukant Radhesham Mantri [A] 4 Findings and Analysis : 6. We have heard both the parties and perused the records. The assessee had filed additional evidence which was not produced before the lower authorities. We admit the additional evidence as the assessee could not file it before the AO due to sufficient cause. Therefore, we set aside the assessment order to the Assessing Officer for de-novo adjudication qua the impugned disallowance of Rs.1,06,83,000/-. The AO shall provide opportunityto the assessee. The Assessee shall file all relevant details before the AO within three opportunities. Accordingly appeal of the assessee is allowed for statistical purpose. 7. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 31 st March, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 31 st March, 2023/ SGR* आदेशकᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. ITA No.662/PUN/2021 Shri Vishnukant Radhesham Mantri [A] 5 आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.