Shri Gajendra Singh Parmar, Gwalior V. A.C.I.T., Circle-3, Gwalior

ITA 77/AGR/2013

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0697 (ITAT-AGRA)
• Duration Of Justice: 6 year(s) 1 month(s) 26 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 16-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-06-2013
• Assessment Year: misc
• Appeal Filed On: 21-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: AAJAY WADJIKAR
• Keywords: Depreciation; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 77/AGRA/2013 ASSTT. YEAR : 2008-09 SHRI GAJENDRA SINGH PARMAR, VS. A.C.I.T., CIRCLE 3, PROP. M/S. G.D. CONTRACTOR, GWLIOR. NEAR MAN MANDIR TALKIES, GWALIOR. (PAN :AIHPP 4167 E) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AAJAY WADJIKAR, C.A. RESPONDENT BY : SHRI WASEEM ARSHAD, SR. D.R. DATE OF HEARING : 19.06.2013 DATE OF PRONOUNCEMENT OF ORDER : 28.06.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. CIT(A), GWALIOR DATED 05.03.2013 FOR THE ASSESSMENT YEAR 2008-09, CHALLENGING THE ADDITION OF RS.1,00,000/- OUT OF VA RIOUS EXPENSES. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSEE IS A CONTRACTOR AND FILED RETURN OF INCOME DECLARING INCOME OF RS.6,75, 877/-. THE AO FOUND THAT THE ASSESSEE HAS DEBITED SEVERAL EXPENSES IN PROFIT AND LOSS ACCOUNT, THE ITA NO. 77/AGRA/2013 2 DETAILS OF WHICH ARE NOTED IN PARA 4 OF THE ASSESSM ENT ORDER FROM SL. NO. 1 TO 9 IN A SUM OF RS.1,24,48,760/-. THE AO FOUND THAT C OMPLETE VOUCHERS OF THESE EXPENSES HAVE NOT BEEN PRODUCED. THEREFORE, L UMP SUM DISALLOWANCE OF RS.5,00,000/- WAS MADE FOR WANT OF VERIFICATION AND TO COVER UP POSSIBLE LEAKAGES. THE LD. CIT(A) CONSIDERING THE EXPLANATIO N OF THE ASSESSEE RESTRICTED THE ADDITION TO RS.1,00,000/-. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS, WE DO N OT FIND ANY JUSTIFICATION TO SUSTAIN THE PART ADDITION OF RS.1, 00,000/-. THE ASSESSEE HAS FILED STATEMENT SHOWING CALCULATION OF NET PROFIT A T PAGE 5 OF THE PAPER BOOK TO SHOW THAT BEFORE DEPRECIATION, THE ASSESSEE HAS SHOWN NET PROFIT OF 12.33% AND AFTER DEPRECIATION, NET PROFIT COMES TO 5%. CONSIDERING THE NATURE OF BUSINESS OF ASSESSEE AND FINDING OF THE A O, THE ADDITION IS ADHOC IN NATURE AND UNJUSTIFIED. THE AO HAS NOT POINTED OUT AS TO WHICH OF THE AMOUNT RELATED TO SUCH EXPENSES FOR WHICH THE VOUCH ERS HAVE NOT BEEN PRODUCED BEFORE THE AO. THE ADDITION IS MADE TO COV ER UP THE POSSIBLE LEAKAGES OF REVENUE. IN THE ABSENCE OF ANY DETAILS IN THE ASSESSMENT ORDER FOR MAKING THE DISALLOWANCE OUT OF EXPENSES, WE DO NOT FIND ANY JUSTIFICATION TO ITA NO. 77/AGRA/2013 3 SUSTAIN THE ORDERS OF THE AUTHORITIES BELOW. WE ACC ORDINGLY, SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND DELETE THE ADDI TION OF RS.1,00,000/-. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY