Das Cold Storage Pvt. Ltd., Agra V. Asstt. C.I.T., Cricle-3(1), Etah

ITA 89/AGR/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 56915 (ITAT-AGRA)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 13-03-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 28-03-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Keywords: Business expenditure

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.89/AGR/2011 ASSESSMENT YEAR: 2007-08 DAS COLD STORAGE PVT. LTD., VS. ASSTT. COMMISSIONE R OF INCOME TAX, D-15, KAMLA NAGAR, CIRCLE 3(1), ETAH. AGRA. (PAN: AAACD 5670 N). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANURAG SINHA, ADVOCATE RESPONDENT BY : SHRI A.K. SHARMA, JR. D.R. DATE OF HEARING : 13.03.2012 DATE OF PRONOUNCEMENT : 16.03.2012 ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 13.01.2011 PASSED BY THE LD. CIT(A), GHAZIABAD FOR THE ASSESSM ENT YEAR 2007-08. 2. THE ASSESSEE HAS RAISED AS MANY AS 9 GROUNDS WHI CH ARE ARGUMENTATIVE. HOWEVER, THE EFFECTIVE GROUND IS IN RESPECT OF DISA LLOWANCE OF ` 60,000/- OUT OF LOADING, UNLOADING AND PALTAI EXPENSES AND ` 40,000/- OUT OF DIESEL, FUEL, TRAVELLING AND OTHER EXPENSES SUSTAINED BY CIT(A). ITA NO.89/AGR/2011 A.Y. 2007-08 2 3. DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE CLAIMED LOADING, UNLOADING AND PALTAI EXPE NSES AT ` 12,18,470/-. THE CLAIM OF THE ASSESSEE WAS SUPPORTED BY SELF-MADE CA SH VOUCHERS. THE ASSESSING OFFICER DISALLOWED 10% OF WHICH CALCULATION COMES T O ` 1,21,847/- ON THE GROUND THAT THE EXPENSES WERE NOT FULLY VERIFIABLE. THE A SSESSING OFFICER DISALLOWED THE SAID EXPENSES AFTER PROVIDING OPPORTUNITY OF HEARIN G TO THE ASSESSEE. SIMILARLY, THE ASSESSING OFFICER DISALLOWED 5% OF VARIOUS EXPENSES SUCH AS TRAVELLING, VEHICLE EXPENSES AND OTHERS OF WHICH CALCULATION COMES TO ` 68,938/- ON THE GROUND THAT ALL EXPENSES WERE NOT SUPPORTED BY VOUCHERS AND THE SE EXPENSES WERE INCURRED IN CASH. THE CIT(A) ACCEPTED THE ASSESSEES ALTERNATE CONTENTION THAT THE DISALLOWANCE WAS ON HIGHER SIDE. THE CIT(A) ACCORD INGLY ALLOWED PART RELIEF AND SUSTAINED THE DISALLOWANCE TO THE EXTENT OF ` 60,000/- OUT OF PALTAI AND LABOUR EXPENSES INSTEAD OF ` 1,21,847/- AND ` 40,000/- OUT OF DIESEL, TRAVELLING & REPAIR ETC. INSTEAD OF ` 68,938/- 4. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. THE ADMITTED FACTS OF THE CASE ARE THAT THE EXPENSE S CLAIMED BY THE ASSESSEE WERE INCURRED IN CASH AND SUPPORTED BY SELF-MADE VOUCHER S PARTIALLY. THE COMPLETE EXPENSES WERE NOT VERIFIABLE. THEREFORE, THE ELEME NT OF EXPENDITURES OTHER THAN BUSINESS CANNOT BE RULED OUT. NOW THE QUESTION REM AINS IS THE ESTIMATION OF SUCH ITA NO.89/AGR/2011 A.Y. 2007-08 3 NON-BUSINESS EXPENSES. THE CIT(A) RIGHTLY FOUND TH AT THE DISALLOWANCE MADE BY THE ASSESSING OFFICER WAS ON EXCESSIVE SIDE. THE C IT(A) AFTER CONSIDERING THE RELEVANT FACTS AND SUBMISSION OF THE ASSESSEE FOUND THAT THE ADDITION TO THE EXTENT OF ` 60,000/- ON ACCOUNT OF PALTAI AND LABOUR EXPENSES A ND ` 40,000/- ON ACCOUNT OF DIESEL, TRAVELLING & REPAIR EXPENSES WAS REASONA BLE DISALLOWANCE. THE ASSESSEE FAILED TO POINT OUT ANY CONTRARY MATERIAL TO THE FI NDING OF CIT(A) BASED ON WHICH A DIFFERENT ESTIMATION OF SUCH EXPENSES CAN BE MADE A T THIS STAGE. IN THE LIGHT OF THE AFORESAID DISCUSSION, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A). THE ORDER OF THE CIT(A) IS CONFIRMED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. (ORDER PRONOUNCED IN THE OPEN COURT ON 16.03.2012) SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 16 TH MARCH, 2012 PBN/* ITA NO.89/AGR/2011 A.Y. 2007-08 4 COPY OF THE ORDER FORWARDED TO: APPELLANT RESPONDENT CIT CONCERNED CIT (APPEALS) CONCERNED D.R., ITAT AGRA BENCH, AGRA GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY