M/s Xindia Steels Ltd , Koppal V. The Assistant Commissioner of Income TAx Circle-7(1)(2), Bangalore

MA 1/BANG/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 5218 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-02-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 23-12-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: WAY OF VOUCHERS; BILLS
• Keywords: Additional evidence
• Section: 254(2); 44AB; 13

Judgement Text

MP No.1/Bang/2022 M/s. XIndia Steels Ltd., Dist. Koppal, Karnataka IN THE INCOME TAX APPELLATE TRIBUNAL “A’’BENCH: BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER M.P. No.1/Bang/2022 (Arising out of ITA No.1605/Bang/2018) Assessment Year: 2013-14 M/s. XIndia Steels Ltd. Kunikere & Hirebaginal Village Ginigera Koppal Taluka District Koppal Karnataka 583 231 PAN NO :AAACX0521A Vs. ACIT Circle-7(1)(2) Bangalore APPELLANT RESPONDENT Appellant by : Smt. Sheetal, A.R. Respondent by : Shri Sankar Ganesh K., D.R. Date of Hearing : 11.02.2022 Date of Pronouncement : 11.02.2022 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: The assessee has filed this miscellaneous application submitting that there are mistakes apparent from records in the order dated 23.6.2021 passed by the Tribunal in the above cited case. 2. The Ld. A.R. submitted that the A.O. had made adhoc disallowance of 25% out of various expenses claimed by the MP No.1/Bang/2022 M/s. XIndia Steels Ltd., Dist. Koppal, Karnataka Page 2 of 4 assessee and the same was also confirmed by Ld. CIT(A). The Ld. A.R. submitted that the Ld. CIT(A) did not admit additional evidences furnished by the assessee by way of vouchers and bills for verification of the expenses. All those evidences were also filed before Tribunal also. However, the Tribunal also did not properly examine the additional evidences and proceeded to confirm disallowance on adhoc basis to the extent of 12.5% by observing that the additional evidences furnished by the assessee are mainly in the form of ledger account copies, self-made vouchers, etc. The Ld. A.R. submitted that the additional evidences furnished by the assessee also consisted of third-party bills and hence, the Tribunal has committed an error in not considering the same in the order. The Ld A.R further submitted that the books of accounts of the assessee have been audited and the auditor has not made any qualification in the audit report. Hence, there was no reason to suspect the expenses claimed by the assessee. Accordingly, the Ld. A.R. submitted that the Tribunal has erroneously proceeded to confirm disallowance to the extent of 12.5% on wrong appreciation of facts, which has resulted in a mistake apparent from record. She further submitted that this mistake goes to the root of matter and accordingly prayed for recall of the impugned order passed by Tribunal. The Ld A.R further submitted that the erroneous finding given by the Tribunal puts hardships to the assessee in filing further appeal. 3. We heard Ld. D.R. and perused the record. We extract below relevant submissions made by the assessee in the miscellaneous petition:- “The Appellant further produced the vouchers, bill, ledger extracts and sample invoice in support of the expenditure as additional evidence before the ITAT which forms part of the paper book. The ITAT also not MP No.1/Bang/2022 M/s. XIndia Steels Ltd., Dist. Koppal, Karnataka Page 3 of 4 appreciated the same and restricted the disallowance to 12.5%. The ITAT further ought to have appreciated that the expenses claimed were towards day-to-day business expenses and were incurred in the course of business of the Appellant which was fully supported by evidence and were also verified by the auditor while giving report under section 44AB of the Act and no contrary has been found. Further, it is submitted that all the expenses were incurred in the normal course of business and none of the expenses were out of way and all the expenses were genuine and which were fully vouched and also audited. Thus, the disallowance made was arbitrary, unjustified and opposed to law and to the principles of natural justice. Further, the ITAT ought to have appreciated that the assessing officer himself has considered the maximum expenses as genuine, having been incurred by the Appellant for the purpose of business under Section 37(1) of the Act. Nowhere in the order of assessment, the assessing officer has whispered how the expenditure is not genuine or not incurred for the purpose of business. Books of accounts were not rejected by the AO. However, the Hon’ble ITAT in para 13 gave the finding that there is only ledger account copies and self-made vouchers were made available as part of the paper book, however ITAT ought to have appreciated that we had enclosed ledger account copies and some invoice copies to support our argument. However, no proper opportunity was given to the petitioner and all the invoice copies are available with the Petitioner and all are genuine expenses incurred for the purpose of business. In such circumstances disallowing the same is bad in law.” 4. On a careful consideration of prayer made in the miscellaneous petition and the contentions of Ld A.R, we are of the view that the prayer put forth by the assessee would result in review of the order already passed by the Tribunal, which is not permitted u/s 254(2) of the Act. It is well settled proposition of law that the Tribunal is not empowered to re-appreciate the matter under the garb of rectification power given u/s 254(2) of the Act. Accordingly, we do MP No.1/Bang/2022 M/s. XIndia Steels Ltd., Dist. Koppal, Karnataka Page 4 of 4 not find any merit in the miscellaneous application filed by the assessee. 5. In the result, the miscellaneous application filed by the assessee is dismissed. Order pronounced in the open court on 11 th Feb, 2022. Sd/- (N.V. Vasudevan) Vice President Sd/- (B.R. Baskaran) Accountant Member Bangalore, Dated 11 th Feb, 2022. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.