Mr. Vijay Kumar Agarwal, Sitapur V. Joint Commissioner of Income Tax, Sitapur

ITA 732/LKW/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4360 (ITAT-LUCKNOW)
• Duration Of Justice: 7 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-07-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 07-12-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: COPY OF PASSED
• Keywords: Depreciation

Judgement Text

2 SURVEY HAD BEEN CARRIED BY THE DEPARTMENT AND NOTHI NG ADVERSE WAS FOUND. 4. THAT THE ID. COMMISSIONER OF INCOME TAX (APPEAL S), BAREILLY ERRED ON FACTS AND IN LAW IN CONFIRMING THE ADHOC D ISALLOWANCE OF RS.15,000/- OUT OF MACHINERY EXPENSES ON SURMISES. 5. THAT THE ID. COMMISSIONER OF INCOME TAX (APPEAL S), BAREILLY ERRED ON FACTS AND IN LAW IN CONFIRMING THE DISALLO WANCES OF RS.19,544/- BEING 15% OF TELEPHONE & CAR EXPENSES O N SURMISES. 6. THAT THE ID. COMMISSIONER OF INCOME TAX (APPEALS ), BAREILLY ERRED ON FACTS AND IN LAW IN CONFIRMING DISALLOWANCE OF R S.5,445/- OUT OF CAR DEPRECIATION ON SURMISES. 7. THE APPELLANT RESERVE A RIGHT TO ADD7ALTER/AMEND ANY GROUND OF APPEAL AT THE TIME OF ITS HEARING. 2. APROPOS GROUND NOS. 1 & 2, IT IS CONTENDED THAT DURING THE COURSE OF SURVEY IT IS NOTICED THAT THERE WAS SHORTAGE OF PAD DY FOR WHICH THE ASSESSEE COULD NOT FURNISH SATISFACTORY EXPLANATION AND ACCORDINGLY THE ASSESSING OFFICER HAS MADE THE ADDITION OF RS.1,78, 596/- ON ACCOUNT OF EXCESS SALE OF PADDY. RELYING UPON THE SHORTAGE IN PADDY THE ASSESSING OFFICER HAS ALSO MADE THE ADDITION OF RS.1,41,217/- ON ACCOUNT OF EXTRA SALE OF RICE. 3. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT( A) WITH THE EXPLANATION THAT THE SURVEY TEAM HAS NOT TAKEN INTO ACCOUNT THE PADDY AVAILABLE IN THE PROCESS. EVEN BEFORE THE CIT(A) AS SESSEE HAS TAKEN A SPECIFIC PLEA THAT THERE WAS NO SHORTAGE OF PADDY A S THE RICE MILL WAS WORKING AND THIS MUCH QUANTITY WOULD BE IN THE PROC ESS (I.E. FROM PIT TO THE FINISHED GOODS). NO PURCHASE AND SALES OUTSIDE BOOK S HAD BEEN FOUND, THEREFORE, NO ADDITION CAN BE MADE UNDER THIS HEAD. IT WAS FURTHER CONTENDED THAT THE COMMERCIAL TAX DEPARTMENT HAS AC CEPTED THE TRADING RESULTS AND THE COPY OF THE ORDER PASSED BY THEM IS PLACED ON RECORD. THOUGH THE ASSESSEE HAS FURNISHED THESE EXPLANATION S BUT THE EXPLANATIONS WERE NOT CONSIDERED BY THE CIT(A) AND THE CIT(A) CO NFIRMED THE ADDITION.