M/s. Shri Builders & Construction, V. ITO,

ITA 84/JAB/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5616 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 27-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VED PRAKASH MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.84/JAB./2012 ASST. YEAR :2005-06 M/S. SHRI BUILDERS & CONSTRUCTIONS, VS. INCOME-TA X OFFICER, BAZARIYA NO. 1, DAMOH. DAMOH. (PAN: AEAFC 6495 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIJAY GUPTA, C.A. RESPONDENT BY : SHRI VED PRAKASH MISHRA, DR DATE OF HEARING : 27.03.2014 DATE OF PRONOUNCEMENT : 28.03.2014 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF LD. CIT(A), JABALPUR DATED 02.12.2011 FOR THE ASSESSMENT YEAR 2 005-06. 2. WE HAVE HEAD THE LD. REPRESENTATIVES OF BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. 3. THE ASSESSEE ON GROUND NO. 1(I) CHALLENGED THE A DDITION OF RS.4300/- OUT OF BLACK METAL EXPENSES. THE AO MADE ADDITION OF RS.10 ,000/- ON THIS ISSUE. THE ASSESSEE IN THE WRITTEN SUBMISSIONS SUBMITTED BEFOR E THE LD. CIT(A) THAT ADDITION MAY BE REDUCED TO RS.4300/- ON THE BASIS OF PRODUCT ION OF BILLS. THE LD. CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE AND REDUCED THE ADDITION TO RS.4300/-. IT, ITA NO. 84/JAB./2012 2 THEREFORE, APPEARS THAT THE ASSESSEE DID NOT HAVE A NY EVIDENCE IN SUPPORT OF THE EXPENSES OF RS.4300/- AND ADMITTED FOR ADDITION BEF ORE THE LD. CIT(A). THEREFORE, THIS GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 4. ON GROUND NO. 1(II), THE ASSESSEE CHALLENGED THE ADDITION OF RS.19,600/- OUT OF IRON PURCHASE. THE AO ON VERIFICATION OF PURCHAS E OF IRON FOUND THAT THE CASH PURCHASE OF IRON WAS SHOWN AT RS.87,400/- AS PER AC COUNTS, BUT THE PURCHASE BILLS WERE PRODUCED FOR RS.67,800/-. THE DIFFERENCE OF 19 600/- WAS ADDED. THE ASSESSEE FAILED TO CLARIFY THIS POSITION EVEN BEFORE THE LD. CIT(A). THEREFORE, THE ADDITION WAS CONFIRMED. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF THE LD. CIT(A) BECAUSE EVEN BEFOR E US, NO MATERIAL WAS PRODUCED TO SUPPORT THIS GROUND OF APPEAL OF THE ASSESSEE. I N THE ABSENCE OF ANY SUPPORTING DOCUMENTS, THIS GROUND IS ACCORDINGLY DISMISSED. 5. ON GROUND NO. 1(III), THE ASSESSEE CHALLENGED TH E ADDITION OF RS.650/- ON ACCOUNT OF TELEPHONE EXPENSES. THE ASSESSEE IS REGI STERED FIRM AND THE AO MERELY ON ACCOUNT OF PERSONAL USER DISALLOWED 1/6 TH OF THE EXPENSES. IT APPEARS TO BE ADHOC ADDITION BECAUSE THERE IS NO EVIDENCE ON RECORD TO SHOW THAT THE TELEPHONES HAVE BEEN USED OTHER THAN FOR BUSINESS PURPOSE. THE ADDI TION OF RS.650/- IS ACCORDINGLY DELETED. THIS GROUND OF APPEAL IS ALLOWED. 6. ON GROUND NO. 1(IV), THE ASSESSEE CHALLENGED THE ADDITION OF RS.2564/- OUT OF ADVERTISEMENT EXPENSES. THE AO FOUND THAT THESE EXPENSES ARE NOT PROPERLY VOUCHED AND CERTAIN BILLS WERE NOT MAINTAINED. 10% OF THE EXPENSES WERE DISALLOWED, WHICH IS CONFIRMED BY THE LD. CIT(A). I T APPEARS TO BE ADHOC ADDITION IN NATURE BECAUSE IT IS NOT POINTED OUT AS TO WHICH OF THE VOUCHERS OF A PARTICULAR ITA NO. 84/JAB./2012 3 AMOUNT HAVE NOT BEEN MAINTAINED OR PRODUCED BY THE ASSESSEE. ADHOC ADDITION IS, THEREFORE, DELETED. THIS GROUND IS ACCORDINGLY ALLO WED. 7. ON GROUND NO. 1(V), THE ASSESSEE CHALLENGED THE ADDITION OF RS.700/- ON ACCOUNT OF DONATION. THE ASSESSEE DID NOT MAKE ANY SUBMISSION BEFORE THE LD. CIT(A) ON THIS COUNT. FURTHER, DONATION IS NOT REVE NUE EXPENDITURE IN NATURE. THEREFORE, THE ADDITION WAS CORRECTLY MADE. THIS GR OUND OF APPEAL OF THE ASSESSEE IS ACCORDINGLY DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (T.S. KAPOOR) (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, JABALPUR 6. GUARD FILE SR. PRIVATE SECRETARY ITAT, CAMP AT JABALPUR