Deepak Petrochem Ltd., Baroda V. The ACIT.,Circle-1(1), Baroda

ITA 740/AHD/2011

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9053 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 year(s) 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-02-2017
• Assessment Year: 2004-2005
• Appeal Filed On: 08-03-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 740/AHD/2011 (ASSESSMENT YEAR: 2004-05) DEEPAK PETROCHEM LTD. 303, B.N. CHAMBERS, R.C. DUTT ROAD, ALKAPURI, BARODA-390 005 V/S ACIT, CIRCLE-1(1), BARODA (APPELLANT) (RESPONDENT) PAN: AAKACD7462L APPELLANT BY : MS. URVASHI SHODHAN, AR RESPONDENT BY : SHRI ASHISH POPHARE, SR. D.R . ( )/ ORDER DATE OF HEARING : 28 -02-201 7 DATE OF PRONOUNCEMENT : 02 -03-2017 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-I, BARODA DATED 05.01.2011 PERTAINING TO A.Y. 2004-05. ITA NO. 740/ AHD/2011 . A.Y. 2004-05 2 2. THE SUBSTANTIVE GRIEVANCE OF THE ASSESSEE READS AS UNDER:- 1. THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS. 1,67,708/- U/S. 40A(3) OF THE ACT. 2. THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS. 31,500/- OUT OF REPAIRS & MAINTENANCE EXPENSES. 3. THE LD. CIT(A) ERRED IN CONFIRMING ADHOC DISALLOWAN CE OF RS. 17,817/- OUT OF MISCELLANEOUS EXPENSES. 3. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEE DINGS, THE A.O. FOUND THAT THE ASSESSEE HAS MADE THE FOLLOWING PAYMENTS I N CASH BY VIOLATING THE PROVISION OF SECTION 40A(3) OF THE ACT. A/C. NO. NAME OF THE PARTY PERIOD AMO UNT (RS.) 10511 KANKRIYA CHEMICALS INDUSTRIES LTD. 09.04.2003 TO 03.06.2003 64,376/ - 10512 J.J. CHEMICALS 01.04.2003 TO 10.12.2003 4,34,400 10648 BARODA GOODS TRANSPORT 01.04.2003 TO 15.06.2003 60,000 10660 BIRLA AT & T 30.04.2003 TO 30.01.2004 92, 000 10700 NISH INDUSTRIAL ENTERPRISES 06.11.2003 TO 09.11.2004 20,000 10701 SPANDAN ENTERPRISES LTD. 07.11.2002 TO 17.11.2004 20,920 23546 DRAVYA CHEMICALS INDUSTRIES LTD. 05.04.2003 TO 23.08.2004 1,13,844 -- MAXWELL -- 33,000 TOTAL 8,38,540 ITA NO. 740/ AHD/2011 . A.Y. 2004-05 3 4. THE ASSESSEE WAS SHOW CAUSE TO EXPLAIN WHY THE PAYM ENTS MADE IN CASH EXCEEDING RS. 20,000/- OTHERWISE THAN BY CROSSED CH EQUE OR BANK DRAFT SHOULD NOT BE DISALLOWED AS PER THE PROVISIONS OF S ECTION 40A(3) OF THE ACT. THE ASSESSEE COULD NOT EXPLAIN THE REASONS FOR MAKI NG THE CASH PAYMENT. THE A.O. ACCORDINGLY DISALLOWED 20% U/S. 40A(3) OF THE ACT, THE DISALLOWANCE WAS WORKED OUT AT RS. 1,67,708/-. 5. PROCEEDING FURTHER, THE A.O. NOTICED THAT THE EXPEN DITURE CLAIMED UNDER THE HEAD REPAIRS AND MAINTENANCE WERE NOT PROPERLY SUPPORTED BY BILLS AND VOUCHERS. ON RECEIVING NO PLAUSIBLE REPLY, THE A.O. DISALLOWED 10% OF THE EXPENDITURE CLAIMED BY THE ASSESSEE AND MADE THE AD DITION OF RS. 31,500/-. 6. FURTHER ON VERIFICATION OF BOOKS OF ACCOUNT, THE A. O. FOUND THAT THE ASSESSEE HAS WRITTEN OF RS. 17,817/- AS MISCELLANEO US EXPENDITURE, NO BASE OR PROPER CLARIFICATION WAS OFFERED BY THE ASSESSEE . IN THE ABSENCE OF THE SAME, THE A.O. DISALLOWED THE EXPENDITURE OF RS. 17 ,817/-. 7. THE ASSESSEE ASSAILED THE ASSESSMENT ORDER BEFORE T HE FIRST APPELLATE AUTHORITY BUT WITHOUT ANY COGENT OR SUPPORTING EVID ENCES IN RESPECT OF ITS CLAIM OF EXPENDITURE. THE LD. CIT(A) CONFIRMED THE ASSESSMENT. 8. BEFORE US, THE LD. COUNSEL COULD NOT BRING ANY EVID ENCE TO SHOW THE ASSESSEE HAD REASONABLE AND JUSTIFIABLE CAUSE FOR M AKING CASH PAYMENT EXCEEDING RS. 20,000/-. FURTHER, THE LD. COUNSEL AL SO COULD NOT ADDUCE ANY EVIDENCE IN SUPPORT OF THE CLAIM OF REPAIRS AND MAI NTENANCE EXPENSES AND ITA NO. 740/ AHD/2011 . A.Y. 2004-05 4 MISCELLANEOUS EXPENSES. IN THE ABSENCE OF ANY COGEN T MATERIAL EVIDENCE BROUGHT ON RECORD TO SUPPORT THE CLAIM OF EXPENDITU RE, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE LD. CI T(A). 9. APPEAL FILED BY THE ASSESSEE IS ACCORDINGLY DISMISS ED. ORDER PRONOUNCED IN OPEN COURT ON 02 - 03- 20 17 SD/- SD/- (MAHAVIR PRASAD) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER AHMEDABAD: DATED 02 /03/2017 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD