Tanuj Shrivastav, Indore V. DCIT 1 (1), Indore

ITA 902/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 8065 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 29-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V J BORICHA

Judgement Text

SMC TANUJ SHRIVASTAV ITA 902 OF 2018 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE SMC BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO.902/IND/2018 A.Y. 2014-15 TANUJ SHRIVASTAV, INDORE PAN ARUPS 8141 D :: APPELLANT VS DCIT-1(1), INDORE :: RESPONDENT ASSESSEE BY SHRI PANKAJ SHAH, CA RESPONDENT BY SHRI V.J. BORICHA, SR. DR DATE OF HEARING 15.1.2020 DATE OF PRONOUNCEMENT 20.1.2020 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF LD. CIT(A)-I, INDORE DATED 02.7.2018 FOR THE ASSESSMENT YEAR 2014-15. THE APPEAL IS TIME-BARRED BY TWO DAYS. LEARNED COUN SEL FOR THE ASSESSEE SUBMITTED THAT DUE TO MEDICAL URGENCY, THI S SHORT DELAY OCCURRED, WHICH MAY KINDLY BE CONDONED. LOOKING TO CIRCUMSTANCES AND IN THE INTEREST OF JUSTICE, THE DELAY IN FILING THE APPEAL IS CONDONED. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS THAT T HE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.6,84,071 /- DISALLOWED SMC TANUJ SHRIVASTAV ITA 902 OF 2018 2 BY THE ASSESSING OFFICER. FACTS GIVING RISE TO THE GROUND OF APPEAL ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND DERIVING INCOME FROM MEDICAL PROFESSION. THE RETURN OF INCOME DECLARING INCOME AT RS.19,45,090/- WAS FILED AND THE ASSESSING OFFICER WHILE FRAMING THE ASSESSMENT MADE ADDITION OF RS.6,84,071/- DISAL LOWING EXCESSIVE/UNREASONABLE EXPENSES. THE ASSESSEE WENT IN APPEAL AND THE LD. CIT(A) CONFIRMED THE ACTION OF THE ASSE SSING OFFICER ON THE GROUND THAT ASSESSEE DID NOT FURNISH THE REQ UISITE EVIDENCES EXCEPT RECEIPT OF CLINIC, CASH MEMOS OF P ETROL AND BILL OF TRIP FROM MUMBAI TO INDORE. THUS, THE ASSESSEE I S BEFORE THIS TRIBUNAL. 3. BEFORE ME, LEARNED COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSION MADE BEFORE THE AUTHORITIES BELOW AN D SUBMITTED THAT THE ASSESSEE IS A MEDICAL PROFESSIONAL AND TOT AL EXPENSES AT RS.7,84,071/- WERE CLAIMED BUT THE ASSESSING OFFICE R HAD ONLY ALLOWED RS.1 LAKH ON ADHOC BASIS AND REMAINING AMOU NT OF RS.6,84,071/- WAS ALSO DISALLOWED ON ADHOC BASIS. T HE REVENUE SMC TANUJ SHRIVASTAV ITA 902 OF 2018 3 AUTHORITIES DID NOT CONSIDER THE FACT THAT AGAINST TOTAL RECEIPTS OF RS.30,24,898/- FROM THE MEDICAL PROFESSION, ONLY RS .7,84,071/- WERE CLAIMED ON ACCOUNT OF EXPENSES, THEREFORE, REM AINING GROSS RECEIPT AROUND 75% OFFERED FOR TAXATION IS QUITE RE ASONABLE BECAUSE AS PER PROVISIONS OF SEC. 44ADA OF THE ACT, 50% PRESUMPTIVE RATE FOR PROFESSIONAL HAS BEEN CONSIDER ED AS REASONABLE. LEARNED COUNSEL FOR THE ASSESSEE ALSO R ELIED ON RELEVANT JUDICIAL PRONOUNCEMENTS IN THIS REGARD AND CONTENDED THAT THE ADDITION IS UNJUSTIFIED. ON THE OTHER HAND , LD. SR. DR RELIED ON THE ORDERS OF THE REVENUE AUTHORITIES. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON THE FILE . ON CONSIDERATION OF ABOVE FACTS, I FIND THAT THE ASSES SEE HAD CLAIMED THE FOLLOWING EXPENSES: 1 ADVERTISEMENT 58815 2 BANK CHARGES 2513 3 CONVEYANCE 114639 4 MEDICAL CAMP 93080 5 ELECTRICITY 17659 SMC TANUJ SHRIVASTAV ITA 902 OF 2018 4 6 EDUCATIONAL CONFERENCE 86798 7 OFFICE EXPENSES 44061 8 RENT 42800 9 SALARY AND WAGES 70000 10 TELEPHONE EXPENSES 10470 11 TRAVELLING EXPENSES 243236 TOTAL: 784071 I FIND THAT THE ASSESSING OFFICER ALLOWED RS. ONE L AKH WITHOUT REFERRING ANY EVIDENCE I.E. ON ADHOC MANNER AND REM AINING BALANCE I.E. RS.6,84,071/- WAS DISALLOWED WITHOUT B RINGING ANY CORROBORATIVE MATERIAL ON RECORD. IT IS NOT DISPUTE D THAT OUT OF TOTAL RECEIPTS OF RS.30,24,898/- FROM THE MEDICAL PROFESS ION, ONLY RS.7,84,071/- WERE CLAIMED ON ACCOUNT OF EXPENSES. THUS, REMAINING GROSS RECEIPT COMES TO AROUND 75% AND AS PER PROVISIONS OF SEC. 44ADA OF THE ACT, 50% PRESUMPTIV E RATE FOR PROFESSIONAL HAS BEEN CONSIDERED AS REASONABLE. HOW EVER, EXPENSES ON ACCOUNT OF ADVERTISEMENT AND TRAVELLING EXPENSES ARE APPEARING EXCESSIVE BECAUSE PERSONAL USER CANNO T SIMPLY BE RULED OUT. THEREFORE, LOOKING TO THESE FACTS AND TO MEET AN END TO THE JUSTICE, I DIRECT THE ASSESSING OFFICER TO DELE TE THE ADDITION OF SMC TANUJ SHRIVASTAV ITA 902 OF 2018 5 RS.5 LACS OUT OF REMAINING ADDITION OF RS.6,84,071/ -. ACCORDINGLY, THE ONLY GROUND NO.1 RAISED BY THE ASSESSEE IS PART LY ALLOWED. 5. IN RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 20.1.2020 . SD/- (KUL BHARAT) JUDICIAL MEMBER DATED : 20.1.2020 ! VYAS ! COPY TO: APPELLANT/RESPONDENT/PR.CIT(A)/PR.CIT/DR, INDORE