Shri Lalchand Popatlal Shah, Ahmedabad V. The ITO, Ward-5(2)(5), Ahmedabad

ITA 815/AHD/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8476 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, अहमदाबाद यायपीठ ‘SMC’ अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD (Conducted through Virtual Court) BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER ITA No.815/Ahd/2019 नधा रण वष / Asstt.Year : 2013-14 Shri Lalchand Popatlal Shah 305, Loha Bhavan Opp: Old High Court Lane, Nr.Income Tax Office Ahmedabad. PAN : ADSPS 7803 A Vs. ITO, Ward-5(2)(5) Ahmedabad. (Applicant) (Responent) Assessee by : Shri S.N. Soparkar, Sr.Adv, with Shri Parin Shah, AR Revenue by : Shri Kamlesh Makana, Sr.DR स ु नवाई क तार ख/Date o f He ar in g : 1 2/ 11 /2 02 1 घोषणा क तार ख /D ate o f Pr on ou nce me nt : 1 6/1 1/ 20 21 आदेश/ O R D E R PER RAJPAL YADAV, VICE-PRESIDENT: The above appeal filed by the assessee arises from order of the Commissioner of Income Tax (Appeals)-5, Ahmedabad dated 26.03.2019 for assessment year 2013-14. 2. Solitary grievance of the assessee is that the ld.CIT(A) has erred in confirming addition of Rs.3,61,074/-. ITA No.815/Ahd/2019 2 3. With the assistance of the ld.representatives, we have gone through the record carefully. It emerges out that the assessee at the relevant time was engaged in trading of MS angles, channels etc. He has filed his return of income electronically declaring total income at Rs.12,00,240/-. The ld.AO has considered the following expenses: i) Labour expense Rs.1,46,040/- ii) Petrol Expense Rs.1,39,164/- iii) Truck Bhada Expense Rs.15,20,166/- Total Rs.18,05,370/- 4. According to the AO, the assessee failed to give plausible explanation of this expenditure, and he disallowed 20%. On appeal, the ld.CIT(A) has confirmed disallowance. We find that the AO did not devote much energy about discussing the nature of expenditure, and details submitted by the assessee. His whole discussion runs in ten lines on page no.3 & 4, and thereafter he simply made disallowance at 20%. The assessee was unable to submit complete details even before the CIT(A). When we confronted this aspect to the ld.counsel for the assessee, then his stand was that disallowance at 20% is too high considering nature and magnitude of business of the assessee. After due consideration of all the relevant factors, particularly, the nature of the business of the assessee, we direct the AO to restrict disallowance to 10%. In other words, 50% of the addition ITA No.815/Ahd/2019 3 confirmed by the ld.CIT(A) at Rs.3,61,074/- would be deleted. Assessee thus gets part relief. This ground is accordingly disposed. 5. In the result, the appeal of the assessee is partly allowed. Order pronounced in the Court on 16 th November, 2021 at Ahmedabad. Sd/- (WASEEM AHMED) ACCOUNTANT MEMBER Sd/- (RAJPAL YADAV) VICE-PRESIDENT