KANKSHA MANUFCTURING LLP, MUMBAI V. DCIT (CEN CIR) -9, MUMBAI

ITA 6931/MUM/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 8675 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 28-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH B, MUMBAI BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ITA NO.6931/M/2016 ASSESSMENT YEAR: 2012-13 M/S. KANKSHA MANUFACTURING LLP, 601, MANISHA MANDIR CHS, KEDARMAL ROAD, MALAD (E), MUMBAI -400 097 PAN: AAKFK0962B VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2), OLD CGO BUILDING, M.K. MARG, MUMBAI - 400020 (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : NONE REVENUE BY : SHRI SUMAN KUMAR, D.R. DATE OF HEARING : 17.08.2017 DATE OF PRONOUNCEMENT : 25.10.2017 O R D E R PER D.T. GARASIA , JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 27.10.2016 OF THE COMMISSIONER OF I NCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] R ELEVANT TO ASSESSMENT YEAR 2012-13. 2. THE SHORT FACTS OF THE CASE ARE THAT THE ASSESSE E IS A LIMITED LIABILITY PARTNERSHIP FIRM ENGAGED IN PROVIDING JOB WORK SERVICE OF MANUFACTURING AND POLISHING OF DIAMONDS FROM ROUGH DIAMONDS. ITA NO.6931/M/2016 M/S. KANKSHA MANUFACTURING LLP 2 THE SURVEY UNDER SECTION 133 OF THE ACT WAS CONDUCT ED IN THE PREMISES OF THE ASSESSEE. THE ASSESSING OFFICER (H EREINAFTER REFERRED TO AS THE AO) DISALLOWED RS.3,52,396/- ON AD-HOC BA SIS @ 15% OUT OF THE MOTOR CAR EXPENSES AND SUNDRY EXPENSES. 3. MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 6. I HAVE CONSIDERED THE FACTS OF THE CASE, SUBMIS SIONS AND CONTENTIONS OF THE ASSESSEE AS ALSO THE ORDER OF TH E AO. FROM THE ASSESSMENT ORDER IT APPEARS THAT THE AO MADE THIS ADDITION/DISALLOWANCE ON THE GROUNDS THAT COMPLETE BILLS AND VOUCHERS IN SUPPORT OF THE EXPENSES WERE NOT PRODUC ED. DURING THE COURSE OF APPELLATE PROCEEDINGS THE ASSESSEE PRODUCED COPI ES OF SOME BILLS AND VOUCHERS AND ARGUED THAT DISALLOWANCE MADE BY T HE AO WAS NOT JUSTIFIED I HAVE CONSIDERED THE FACTS OF THE CASE. FROM THE ASSESSMENT ORDER IT APPEAR S THAT THE AO HAS MADE THIS ADDITION IN SUMMARY MANNER WITHOUT EXAMINING THE FACTS OF THE CASE PROPERLY OR WITHOUT RAISING ANY QUERY TO THE ASSESSEE ABOUT THE VOUCHER S WHCH WERE NOT PRODUCED. AT THE SAME TIME IT APPEARS THAT ALL THE VOUCHERS HAVE NOT BEEN PRODUCED BY THE ASSESSEE FOR EXAMINATION. BESIDES SOME OF THE EXPENSES HAVE BEEN INCURRED TO CASH ALSO. THEREFORE CONSIDERING THE NATURE OF EXPENSES AND OVERALL FACTS OF THE CASE, I AM OF THE VIEW THAT ENDS OF JUSTICE WILL BE MET IF THE DISALLOWANCE MADE BY THE AO IS REDUCED FROM 13% TO 10% THE ASSESSEE THUS GETS RELIEF OF RS.1,01 ,030/- REMAINING ADDITION OF RS.2,02,060/- IS CONFIRMED. 7. SECOND GROUND IS RELATING TO DISALLOWANCE OF 15% OF EXPENSES OUT OF MOTOR CAR EXPENSES AMOUNTING TO RS.49,292/- THIS GROUND IS IDENTICAL TO GROUND NO 1. ALSO THE SUBMISSIONS OF T HE ASSESSEE ARE SIMILAR. THERELORE FOR REASONS GIVEN IN GROUND NO 1, THE DISALLOWANCE UNDER THIS HEAD IS ALSO RESTRICTED TO 10% FROM 15%. THE AO WILL WORK OUT THE DISALLOWANCE/RELIEF ACCORDINGLY. 8. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. 4. DURING THE COURSE OF HEARING, NONE APPEARED BEFO RE US ON BEHALF OF THE ASSESSEE. THE ASSESSEE DID NOT PRODU CE ANY EVIDENCE BEFORE US. THEREFORE, WE HAVE NO ALTERNATIVE EXCEP T TO ENDORSE THE ITA NO.6931/M/2016 M/S. KANKSHA MANUFACTURING LLP 3 ACTION OF THE LD. CIT(A). ACCORDINGLY, WE DISMISS THE APPEAL OF THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.10.2017. SD/- SD/- (MANOJ KUMAR AGGARWAL) (D.T. GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 25.10.2017. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.