I.T.O. 3(1), Gwalior V. M/s. K.K. Construction Company, Gwalior

ITA 82/AGR/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1949 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 02-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BELU SINHA
• Assessee Lawyers: APPLICATION REJECTED
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, SMC AGRA BEFORE SH RI J.S. REDDY , ACCOUNTANT MEMBER ITA NO. 80 / AG RA /201 5 ASSESSMENT YEAR : 20 10 - 11 INCOME TAX OFFICER 3(1) , VS. M/S. G.K. BUILDERS AND CONTRACTOR, GWALIOR. 16 - A, KIRAR COLONY, IN FRONT O F JAWAHAR COLONY, GWALIOR (M.P.) (PAN: AA HFG 8149 D ) . ITA NO.82/ AG RA /201 5 ASSESSMENT YEAR: 2010 - 11 INCOME TAX OFFICER 3(1), VS. M/S. K .K. CON STRUCTION COMPANY , GWALIOR. 1 3, KHERAQPATI COLONY, GWALIOR (M.P.) (PAN: AA G F K 6545 A ). (APPELLANT) (RESPONDENT S ) A PPELLANT BY : SMT. BELU SINHA, SR. D.R. RE SPONDENT BY : APPLICATION REJECTED DATE OF HEARING : 0 5 .07. 201 6 DATE OF PRONOUNCEMENT : 08 . 07.201 6 ORDER THESE ARE APPEALS FILED BY THE REVENUE AGAINST TWO DIFFERENT ORDER S OF THE LEARNED CIT(A) , GWALIOR , BOTH DATED 16.12.2014, FOR THE A SSESSMENT YEAR 20 10 - 11, ON THE FOLLOWING GROUNDS: - GROUNDS OF ITA NO.80/AGRA/2015 1. WHETHER ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD . CIT(A ) HAS ERRED IN DELETING THE ADDITION OF RS.34,24,055/ - ON ACCOUNT OF TOTAL CONSTRUCTION EXPENSES MADE BY THE ASSESSING OFFICER ITA NO S . 80 AND 82 /AGRA/201 5 A.Y S . 20 10 - 11 2 GROUNDS OF ITA NO.82/AGRA/2015 1. WHETHER ON FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.36,54,270/ - MADE BY THE ASSESSING OFFICER ON ACCOUNT OF MATERIAL AND LABOUR EXPENSES 2. NONE APPEARED ON BEHALF OF THE ASSESSEE S . THERE IS AN APPLICATION FOR ADJOURNMENT . I AM OF THE OPINION THAT THIS IS NOT A FIT CASE FOR GRANT O F ADJOURNMENT. HENCE , I DISPOSE OF THESE CASES EX - PARTE QUA THE ASSESSEE ON MERITS. 3. BOTH THE ASSESSEES IN THIS CASE ARE CIVIL CONTRACTORS. IN THE CASE OF M/S. G.K. BUILDERS AND CONTRACTOR, T HE ASSESSING OFFICER DISALLOWED CERTAIN CONSTRUCTION EXPENSE S ON AHOC BASIS. LD , CIT(A) AT PARA 4.2 HELD AS FOLLOWS: - 4.2 I HAVE GONE THROUGH THE ASSESSMENT ORDER AND WRITTEN SUBMISSION CAREFULLY. ALONG WITH WRITTEN SUBMISSION, THE APPELLANT HAS FILED COPY OF THE ORDER SHEET . IT IS SEEN FROM THE ORDER SHEET TH AT ON 5.3.2013 BOOKS OF ACCOUNT WERE PRODUCED BY THE APPELLANT WHICH WERE TEST CHECKED BY THE AO. IN THE ORDER SHEET THE AO HAS NOT MENTIONED ANYWHERE WHICH PARTICULAR DETAIL OF THE EXPENSES WAS NOT PRODUCED BY THE APPELLANT. IN THE ASSESSMENT ORDER ALSO HE HAS NOT STATED WHICH DETAIL OF EXPENSES WAS NOT PRODUCED. THEREFORE , DISALLOWANCE OF RS.35,24,055/ - MADE BY AO APPEARS TO BE UNJUSTIFIED. HOWEVER, LOOKING TO THE NATURE OF EXPENSES , POSSIBILITIES OF LEAKAGE CANNOT BE RULED OUT. HENCE I AM OF THE CON SIDERED OPINION THAT IT WOULD BE FAIR AND REASONABLE IF THE DISALLOWANCE IS RESTRICTED TO RS.1 LAKH. ACCORDINGLY, THE DISALLOWANCE MADE BY THE AO IS RESTRICTED TO RS.1 LAKH AND THE APPELLANT GETS RELIEF OF RS.34,24,055/ - . 4. I DO NOT FIND ANY INFIRMITY IN THIS ORDER. THE ADHOC DISALLOWANCE MADE WITHOUT ANY BASIS, IN MY VIEW, HAS BEEN RIGHTLY DELETED BY THE LEARNED CIT(A) . ITA NO S . 80 AND 82 /AGRA/201 5 A.Y S . 20 10 - 11 3 5. SIMILAR FINDING WAS GIVEN BY THE LEARNED CIT(A) IN THE CASE OF M/S. K.K. CONSTRUCTION COMPANY . THEREFORE, THE ADHOC DISALLOWANC E MADE WITHOUT ANY BASIS, IN MY VIEW, HAS BEEN RIGHTLY DELETED BY THE LEARNED CIT(A) IN THIS CASE ALSO. 6 . IN THE RESULT, BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JULY, 2016. SD/ - (J.S . REDDY) ACCOUNTANT MEMBER DATE: 8 TH JU LY , 201 6 PBN/* COPY OF THE ORDER FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER AS SISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA