M/s. Country Spirit Shop, Howrah V. ITO, Ward - 48(3), Kolkata, Kolkata

ITA 879/KOL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2496 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2010
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 04-05-2010
• Court: TRIBUNAL
• Department Lawyers: R K PAL
• Keywords: Corroborative evidences; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : SMC BENC H : KOLKATA [BEFORE HONBLE SMT. DIVA SINGH, JM] I.T. A. NO. 879/KOL/2010 ASSESSMENT YEAR 2005-06 M/S.COUNTRY SPIRIT SHOP -VS- I.T.O., WARD-48 (3) KOLKATA PAN AABFC 8202 F KOLKATA (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI R.K.PAL, SR.DR O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-XXX, KOLKATA DATED 03.12.2009 PERTAINING TO A.YR.2005-06 WHEREIN THE FOLLOWING GROUNDS HAVE BEEN RAISED BEFORE US :- 1. FOR THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(APPEAL) IS NOT JUSTIFIED IN MAINTAINING ADDITION OF RS.30,0 00/- WITHOUT CONSIDERING THE BASIS OF THE CASE. 2. FOR THAT UNDER THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE THE ADDITION MADE BY THE LD.ITO WARD-48(3)/KOLKATA DISALLOWING C LAIM OF EXPENDITURE UNDER DIFFERENT HEADS OF ACCOUNTS, IN SPITE OF PROD UCING NECESSARY VOUCHERS AS WELL AS THE ADDITION MAINTAINED BY THE LD. CIT(APPE AL) IS ARBITRARY, ERRONEOUS AND IS NOT TENABLE IN LAW. 3. FOR THAT UNDER THE FACTS AND CIRCUMSTANCES OF TH E CASE, THE LD. CIT(APPEAL) SHOULD HAVE DELETED ENTIRE THUMB ADDITION OF RS.41, 170.00 CONSIDERING THE FACTS AS WELL AS THE RECORDS BUT ALLOWED RELIEF OF RS.14, 170.00 WHICH HAD NO BASIS. 4. FOR THAT UNDER THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE, YOUR PETITIONER HUMBLY PRAYS THAT THE THUMB ADDITION OF RS.30,000.0 0 MAINTAINED BY THE CIT(APPEALS) SHOULD BE DELETED. 2 FOR UNDER THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, YOUR APPELLANT CRAVES LEAVE TO ADD FURTHER GROUND/GROUNDS/ALTER ANY GROUN D/GROUNDS AT OR BEFORE HEARING OF THE APPEAL. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE THE PASS OVER. HOWEVER, ON PERUSAL OF MATERIAL AVAILABLE ON RECORD IT IS CONSI DERED APPROPRIATE TO PROCEED WITH THE HEARING. 3. THE LD. DR RELIED ON THE IMPUGNED ORDER. 4. THE RELEVANT FACTS OF THE CASE ARE THAT THE ASS ESSEE IN THE YEAR UNDER CONSIDERATION DERIVED INCOME FROM THE BUSINESS OF C OUNTRY SPIRIT IN THE NAME OF M/S.COUNTRY SPIRIT SHOP AND BANK INTEREST. ON PERUS AL OF THE BOOKS OF ACCOUNTS BILLS AND VOUCHERS AND THE DETAILS OF EXPENSES ETC., THE AO HOLDING THE ASSESSEE FAILED TO PRODUCE SATISFACTORY EVIDENCE IN SUPPORT OF THE EXP ENDITURE CLAIM MADE AN ESTIMATED DISALLOWANCE OF RS.44,170/- UNDER THE FOLLOWING HEA DS :- A) CARRIAGE OUTWARD DEBITED RS.30,352/- DISALLOWANCE OF RS.10,000/- WAS MADE HOLDING THAT THE ASSESSEE COULD NOT QUANTIFY THE AM OUNT OF INCENTIVES TO STAFF AND TRANSPORTATION, B) BOTTLE BREAKAGE A/C DEBITED TO RS.31,467/- DISALLOWANCE WAS RESTRICTED TO RS.10,000/- AS THE ASSESSEE HAD NOT STATED NOW MANY BOTTLES WERE BROKEN. C) MISCELLANEOUS EXPENSES DEBITED RS.43,772/- - A DISALLOWANCE OF RS.5,000/- WAS MADE AS THE NATURE OF EXPENSES WERE NOT DISCLOSED A ND VOUCHERS WERE FOUND TO BE SELF MADE. D) GENERAL CHARGES DEBITED RS.18,399/- DISALLOWANCE OF RS.3,000/- WAS MADE HOLDING THAT THERE WERE SELF MADE VOUCHERS WITHOUT ANY SUPP ORTING EVIDENCES. E) DONATION AND SUBSCRIPTION THE ENTIRE AMOUNT OF RS.3,220/- WAS DISALLOWED F OR WANT OF DOCUMENTARY EVIDENCE. F) COOLIE CHARGES & CARTAGE A/C DEBITED TO RS.33,66 5/- A DISALLOWANCE OF RS.3,000/- WAS MADE HOLDING THAT SELF MADE VOUCHERS WERE WITHO UT ANY SUPPORTING EVIDENCES. G) TRAVELLING AND CONVEYANCE A/C DEBITED TO RS.24,7 42./- DISALLOWANCE WAS RESTRICTED TO ONE FIFTH FOR WANT OF SUPPORTING EVIDENCES AMOUN TING TO RS.4,950/-. 3 H) WASTAGE A/C DEBITED TO RS.32,235/- DISALLOWANCE OF RS.5,000/- WAS MADE AS THE MONTH WISE EXPENSES DID NOT HAVE NARRATION ON THE N ATURE OF EXPENSES AND FOR WANT OF SUPPORTING EVIDENCES. ACCORDINGLY DISALLOWANCE OF RS.44,170/- WAS MADE B Y THE AO. 5. AGGRIEVED BY THIS THE ASSESSEE CAME IN APPEAL BE FORE THE CIT(A). BEFORE HIM IT WAS CONTENDED THAT THE EXPENSES INCURRED WERE FOR T HE PURPOSE OF BUSINESS AND AS SUCH DESERVE TO BE ALLOWED. CONSIDERING THESE SUBMISSION S THE CIT(A) CAME TO THE FOLLOWING CONCLUSION :- THE APPELLANT CLAIMED VARIOUS EXPENDITURE IN THE P ROFIT AND LOSS ACCOUNT. THE AO NOTICED THAT THE APPELLANT MADE SELF MADE VOUCHE RS FOR THE EXPENDITURE. IN THE ABSENCE OF SATISFACTORY EVIDENCE THE AO MADE ES TIMATED DISALLOWANCE OUT OF THE EXPENDITURE. THE AO MADE TOTAL DISALLOWANCE OF RS.44,170/-. THE QUANTUM OF DISALLOWANCE MADE BY THE AO IS ON THE HI GH SIDE. A DISALLOWANCE OF RS.30,000/- WOULD MEET THE ENDS OF JUSTICE. A DI SALLOWANCE OF RS.30,000/- IS SUSTAINED. THE APPELLANT GETS RELIEF OF RS.14,170/- (44,170 3,000). 6. STILL AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 7. AT THE TIME OF HEARING NO ONE WAS PRESENT ON BEH ALF OF THE ASSESSEE. IT WAS PASSED OVER. IN THE SECOND ROUND ALSO THERE WAS NO ONE PRESENT ON BEHALF OF THE ASSESSEE. ACCORDINGLY AFTER HEARING THE LD. DR WHO RELIED UPON THE IMPUGNED ORDER THE APPEAL IS BEING DECIDED ON MERIT. 8. A PERUSAL OF THE ASSESSMENT ORDER WOULD SHOW TH AT SPECIFIC REASONS QUA THE ISSUES HAVE BEEN DISCUSSED BY THE AO IN DETAIL. SIN CE THESE ALREADY HAVE BEEN DISCUSSED AT LENGTH IN THE EARLIER PART OF THE ORDE R THE SAME ARE NOT REQUIRED TO BE ELABORATED UPON. A PERUSAL OF THE IMPUGNED ORDER SH OWS THAT A LENIENT VIEW ON THE SAME FACTS HAS BEEN TAKEN BY THE CIT(A). THERE IS N OTHING AVAILABLE BEFORE THE BENCH TO SET ASIDE THE SAME AND CONSIDER FURTHER RELIEF. IN THE ABSENCE OF ANY FACT, CIRCUMSTANCES OR ARGUMENTS IT IS NOT POSSIBLE TO IN TERFERE WITH THE FINDINGS ARRIVED AT IN THE ORDER. BEING SATISFIED IN FACT AND LAW WITH THE REASONING AND THE CONCLUSION THE ASSESSEES GROUND IS DISMISSED AND THE IMPUGNED ORD ER IS UPHELD. 4 9. IN THE RESULT THE ASSESSEES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 09.07.2010. SD/- (DIVA SINGH) JUDICIAL MEMBER DATED : 09.07.2010. COPY OF THE ORDER IS FORWARDED TO :- 1) M/S. COUNTRY SPIRIT SHOP, 140, J.N.MUKHERJEE ROAD, HOWRAH. 2) I.T.O., WARD-48(3), KOLKATA 3) CIT (A)-XXX, KOLKATA (4) CIT - KOLKA TA. 5) D. R., I.T.A.T., KOLKATA. (TRUE COPY) BY ORDER ASSISTANT REGISTRAR, (RG) I.T.A.T., KOLKATA.