RAM SWAROOP SHARMA, Jaipur V. ITO, Jaipur

ITA 757/JPR/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 99597 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 03-10-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VH-VKJ-EHUK] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF; D LNL; DS LE{K BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR, JM VK;DJ VIHY LA-@ ITA NOS. 757/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2008-09 . SHRI RAM SWAROOP SHARMA, NEAR GOPAL PURA GOVT. SCHOOL, TRIVENI NAGAR, JAIPUR. CUKE VS. THE INCOME TAX OFFICER, WARD 6(2), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO. AKZPS 0163 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY S BY : SHRI VIJAY GOYAL (C.A) & SHRI MRIDUL GOYAL (ADVOCATE) JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL. CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30.11.2015. ?KKS'K .KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 16/12/2015. VKNS'K@ ORDER PER SHRI LALIET KUMAR, J.M. THE APPEAL FILED BY THE REVENUE IS ARISING FROM TH E ORDER DATED 28.08.2013 PASSED BY THE LEARNED CIT (A)-II, JAIPUR FOR THE A. Y. 2008-09. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) BIKANER (CAMP AT JAIPUR) ERRED IN CONFIRMING TH E ADDITIONS OF : (I) RS. 71,662/- OUT OF RS. 7,16,618/- FROM THE EXPENSE S MADE UNDER BUSINESS PROMOTION; 2 ITA NO. 757/JP/2013 A.Y. 2008-09. SHRI RAM SWAROOP SHARMA VS. ITO. (II) RS. 2,25,561/- OUT OF RS. 22,55,605/- FROM THE EXPE NSES MADE UNDER COMMISSION EXPENSES AND (III) RS. 8,645/- OUT OF RS. 86,449/- FROM THE EXPENSES M ADE UNDER TELEPHONE EXPENSES. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E, AN INDIVIDUAL, IS ENGAGED IN THE BUSINESS OF FINANCE AS MIDDLEMAN UNDER THE NAME AND STYLE OF M/S. SHRI KRISHNA FINANCE. THE ASSESSEE ARRANGED VEHICLE FINANCE FROM BANKS AND FINANCIAL INSTITUTIONS FOR HIS CUSTOMERS. THE ASSESSEE FILED HIS INCOME TAX RE TURN ON 03/02/2009 DECLARING THE TOTAL INCOME OF RS. 12,61,570/-. THE CASE WAS SELEC TED FOR SCRUTINY U/S 143(3) OF THE IT ACT, 1961 AND THE AO MADE THE ASSESSMENT VIDE ORDER DATED 28.12.2010 MAKING A TOTAL DISALLOWANCE OF RS. 6,11,735/- @ 20% OUT OF TOTAL E XPENSES CLAIMED BY THE ASSESSEE AT RS. 30,58,672/- UNDER VARIOUS HEADS I.E. BUSINESS P ROMOTION EXPENSES, COMMISSION EXPENSES AND TELEPHONE EXPENSES. 2.1. THE AO DISALLOWED 20% OUT OF BUSINESS PROMOTIO N EXPENSES ON THE GROUND THAT THE PAYMENT HAS BEEN MADE IN CASH IN THE NAME OF IN DIVIDUAL WITH WHOM THE ASSESSEE HAD ONLY ONE TIME DEALING. NO PROPER VOUCHERS WERE MAINTAINED BY THE ASSESSEE. FURTHER, OUT OF COMMISSION EXPENSES, 20% DISALLOWAN CE HAS BEEN MADE BY THE AO. ON THE BASIS OF RANDOM VERIFICATION, THE ASSESSEE WAS REQUIRED TO FURNISH CONFIRMATION FROM 5 PARTIES I.E. SVS. GIRDHAR SINGH, GHASI RAM, DIPTE SH GUPTA, SMT. KANCHAN AND MANOJ KUMAR. OUT OF THE ABOVE PERSONS, THE ASSESSEE HAD N OT FILED CONFIRMATION FROM SMT. KANCHAN TO WHOM COMMISSION PAYMENT WAS MADE. THE C OMMISSION WAS PAID IN CASH. THE RECIPIENTS WERE NOT HAVING REGULAR DEALINGS WIT H THE ASSESSEE. OUT OF TELEPHONE 3 ITA NO. 757/JP/2013 A.Y. 2008-09. SHRI RAM SWAROOP SHARMA VS. ITO. EXPENSES, THE AO HAS MADE DISALLOWANCE OF 20% ON TH E GROUND THAT THE PERSONAL USE OF TELEPHONE CANNOT BE RULED OUT, MOREOVER, NO PROP ER RECORD HAS BEEN MAINTAINED. 3. BEING AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE CARRIED THE MATTER BEFORE LD. CIT (A), WHO HAS RESTRICTED THE ADDITION @ 10% UNDE R THE THREE HEADS ON THE GROUND THAT ASSESSEE HAS NOT CONTROVERTED THE FINDING GIVE N BY THE AO, HE HOWEVER, FOUND THE DISALLOWANCE ON THE HIGHER SIDE. 4. NOW THE ASSESSEE IS BEFORE US. 4.1. THE LD. A/R ARGUED THAT THE ASSESSEES CASE IS AUDITABLE AND NO QUALIFYING STATEMENT HAS BEEN MADE BY THE AUDITOR IN THE AUDIT REPORT AND THE DISALLOWANCE CONFIRMED BY THE LD. CIT (A) DESERVES TO BE DELETED . 4.2. AT THE OUTSET, THE LD. D/R SUPPORTED THE ORDER OF THE AO. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE A.O. HAS POINTED OUT VARIOUS DEFECTS U NDER THESE THREE HEADS WHICH HAS BEEN NARRATED ABOVE AND THE SAME HAS NOT BEEN CONTR OVERTED BY THE LD. A/R OF THE ASSESSEE. THE LD. CIT (A) WAS ALSO REASONABLE TO RE STRICT THE DISALLOWANCE @ 10%. ACCORDINGLY, WE FIND NO INFIRMITY IN THE ORDER OF L D. CIT (A) AND THE SAME IS CONFIRMED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/12/2015. SD/- SD/- VH-VKJ-EHUK YFYR DQEKJ (T.R. MEENA) (LALIET KUMAR) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/12/2015 DAS/ 4 ITA NO. 757/JP/2013 A.Y. 2008-09. SHRI RAM SWAROOP SHARMA VS. ITO. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI RAM SWAROOP SHARMA, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- THE ITO WARD 6(2), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDRVIHY@ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 757/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR 5 ITA NO. 757/JP/2013 A.Y. 2008-09. SHRI RAM SWAROOP SHARMA VS. ITO.