Shri Ashok Kantilal Sawant, Solapur V. ACIT, Solapur

ITA 686/PUN/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56574 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 29-11-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 06-05-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K AMBASTHA
• Assessee Lawyers: S N DOSHI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER I.T.A. NO. 686 AND 706/PN/2010 A.Y. 2006-07 AND 2007-08 ASHOK K. SAWANT YASHWANT NAGAR, AKLUJ, TAL. MALSHIRAS, DIST. SOLAPUR PAN AEPPS 5487 L APPELLANT VS. ASSTT. CIT CIR. 1, SOLAPUR RESPONDENT APPELLANT BY: SHRI S.N. DOSHI RESPONDENT BY: SHRI S.K. AMBASTHA DATE OF HEARING: 29-11-2011 DATE OF PRONOUNCEMENT : 30-11-2011 ORDER PER SHAILENDRA KUMAR YADAV, JM BOTH THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF CIT(A)-III PUNE DATED 15-1-201 0 FOR A.Y. 2006-07 AND 24-2-2010 FOR A.Y. 2007-08 ON THE POINT OF CONFIRMATION OF VARIOUS ADDITIONS ON ADHOC BASIS . ITA NO. 686/PN/2010 FOR A.Y. 2006-07 2. THE GROUNDS RAISED RELATES TO DISALLOWANCES OUT OF BLASTING EXPENSES RS. 30000/-, DIESEL CHARGES RS. 7 5,000/- , LABOUR PAYMENT RS. 75,000/-, TELEPHONE EXPENSES R S. 20,000/- AND TRAVEL EXPENSES RS. 10,000/-. THE ASSE SSING OFFICER MADE THE DISALLOWANCES ON THE GROUND THAT T HE EXPENSES WERE NOT FULLY SUPPORTED BY THIRD PART BIL LS OR 2 ITA NO. 686 AND 706/PN/2010 ASHOK SAWANT A.Y. 2006-07 AND 2007-08 OUTSIDE EVIDENCE, THE VOUCHERS ARE SELF MADE VOUCHE RS, THE DETAILS SUCH AS WORKING OF MACHINERY AND CONSUMPTIO N OF DIESEL, PETROL PER MACHINE WAS NOT GIVEN, AND THAT THE VOUCHERS ARE SPECIFICALLY BILLING NUMBER OF HOURS O F VEHICLES AND THERE WAS NO RATE AT WHICH THE WORKING OF AMOUNT WAS DONE. ON APPEAL, THE CIT(A) CONFIRMED THE DISALLOWANCES. SAME HAS BEEN OPPOSED BY THE ASSESS EE BEFORE US. 3. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD, WE FIND THAT CONSIDERING THE NA TURE OF BUSINESS CARRIED ON BY THE ASSESSEE, THE EXPENSES I NCURRED BY THE ASSESSEE CANNOT DOUBTED BUT QUANTUM OF EXPEN SES HAS NOT BEEN SUBSTANTIATED ON BEHALF OF ASSESSEE. T AKING OVER ALL VIEW AND IN THE INTEREST OF JUSTICE, THERE FORE, WE ARE OF THE OPINION THAT 50% DISALLOWANCE ON ALL THE EXP ENSES CLAIMED BY THE ASSESSEE, WOULD MEET THE ENDS OF JUS TICE. WE DIRECT ACCORDINGLY. ITA NO. 706/PN/2010 FOR A.Y. 2007-08 4. IN THIS APPEAL THE ASSESSING OFFICER HAS MADE T HE DISALLOWANCE OF RS. 13,406/- OUT OF LABOUR MESS EXP ENSES, RS. 1,86,354/- OUT OF LABOUR PAYMENT, RS. 7,988 OUT OF TRANSPORT EXPENSES AND RS. 7,608/- OUT OF TRAVELLIN G EXPENSES WHICH WAS CONFIRMED BY THE CIT(A). SAME H AS BEEN OPPOSED BEFORE US BY THE ASSESSEE. FOR THE SI MILAR REASONS MENTIONED IN PARA 3 OF THIS ORDER, AND TAKI NG OVERALL VIEW, WE DIRECT THE ASSESSING OFFICER TO RE STRICT THE DISALLOWANCE TO 50% OF THE EXPENSES CLAIMED BY THE ASSESSEE. 3 ITA NO. 686 AND 706/PN/2010 ASHOK SAWANT A.Y. 2006-07 AND 2007-08 5. IN THE RESULT, BOTH THE APPEALS ARE PARTLY ALLOW ED. PRONOUNCED IN THE OPEN ON 30 TH NOVEMBER 2011. S D/ - (D. KARUNAKARA RAO) ACCOUNTANT MEMBER S D/ - SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 30 TH NOVEMBER 2011. ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT III PUNE 4. CIT(A)-IV PUNE 5. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES, PUNE.