Prem Lata Jain, Ranchi V. ACIT, Ranchi

ITA 70/RAN/2015

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0339 (ITAT-RANCHI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 10-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Assessee Lawyers: V K JALAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 70/RAN/2015 (ASST. YEAR : 2009-10) SMT. PREMLATA JAIN, POORANMAL PRADEEP KUMAR, S.N. GANGULY ROAD, MAIN ROAD, RANCHI. VS. ACIT, CIRCLE-II, RANCHI. PAN NO. ACDPJ 6508 K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. JALAN FCA DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 03/11/2015. DATE OF PRONOUNCEMENT : 0311/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), RANCHI, DATED 24/02/2015. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN CONFIRMING THE ORDER OF THE ASSESSING OFFICER MAKING DISALLOWANCE OF 1/5 TH OF THE EXPENSES INCURRED UNDER THE HEADS TELEPHONE EXPENSES, CONVEYANCE AND TRAVELLING , PRINTING AND STATIONERY, COMMISSION AND INCENTIVES. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN THE INSTANT CASE, THE ASSESSING OFFICER MADE DISALLOWANCE OF 1/ 5 TH OF THE EXPENSES 2 ITA NO. 70/RAN/2015 OF RS. 4,77,071/- CLAIMED BY THE ASSESSEE UNDER THE HEAD TELEPHONE EXPENSES OF RS. 73,626/-, CONVEYANCE AND TRAVELLING EXPENSES OF RS.49,780/-, PRINTING AND STATIONERY EXPENSES OF RS . 83,710/-, OFFICE EXPENSES OF RS. 63,965/- AND COMMISSION & INCENTIVE S OF RS.2,05,990/- AND THEREBY MADE THE ADDITION OF RS. 95,414/- TO TH E TOTAL INCOME OF THE ASSESSEE. 4. ON APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (A PPEALS) THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER WAS N OT RIGHT IN DISALLOWING 1/5 TH OF THE EXPENSES CLAIMED AND PRAYED FOR DELETION OF THE SAME. THE COMMISSIONER OF INCOME TAX (APPEALS) OB SERVED THAT THE CONTENTION OF THE ASSESSEE IS THAT DISALLOWANCE OF 1/5 TH OF THE EXPENSES UNDER THE HEADS TELEPHONE, CONVEYANCE AND TRAVELLIN G, PRINTING AND STATIONERY, OFFICE EXPENSES AND COMMISSION & INCENT IVES MADE BY THE ASSESSING OFFICER WERE WITHOUT ANY BASIS AND SHOULD BE ALLOWED IN VIEW OF THE FACTS THAT ALL THE REQUIRED SUPPORTING DOCUM ENTS ALONG WITH THE CASH AND OTHER DOCUMENTS WERE EXAMINED AND CONTESTE D BY THE ASSESSING OFFICER. THE COMMISSIONER OF INCOME TAX (APPEALS) OBSERVED THAT THE ASSESSING OFFICER FOUND THAT THE EXPENSES CLAIMED BY THE ASSESSEE WERE NOT COMPLETELY VERIFIABLE AND, THEREF ORE, CONFIRMED THE ACTION OF THE ASSESSEE. 5. WE FIND THAT NEITHER ASSESSING OFFICER NOR COMMISS IONER OF INCOME TAX (APPEALS) HAS GIVEN THE DETAILS OF THE E XPENSES WHICH WERE NOT COMPLETELY VERIFIABLE FOR MAKING THE DISALLOWAN CE OF RS. 95,414/-. WE FIND FROM THE ORDERS OF THE LOWER AUTHORITIES TH AT THE DISALLOWANCE HAS BEEN MADE AT 1/5 TH OF THE TOTAL EXPENSES CLAIMED BY THE ASSESSEE UNDER THE DIFFERENT HEADS AS STATED ABOVE. SUCH AN ADHOC DISALLOWANCE OF EXPENSES CLAIMED BY THE ASSESSEE CANNOT BE SUSTA INED IN LAW. WE, THEREFORE, SET ASIDE THE ORDERS OF THE LOWER AUTHOR ITIES AND DELETE THE ADDITION OF RS. 95,414/- AND ALLOW THE GROUND OF AP PEAL OF THE ASSESSEE. 3 ITA NO. 70/RAN/2015 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON TUESDAY, THE 3 RD DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 03 RD NOVEMBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 4 ITA NO. 70/RAN/2015 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 03/11/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04/11/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 04/11/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 04/11/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 04/11/2015 SR.PS 6. DATE OF PRONOUNCEMENT 03/11/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 04/11/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER