Senthilnathan Valliappan, CHENNAI V. ITO, CHENNAI

MA 135/CHNY/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 5647 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 19-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANAT KUMAR RAHA
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU R L REDDY , JUDICIAL MEMBER M.P.NO. 135 /MDS/2017 [IN I . T.A. NO. 790 /MDS/201 6] ASSESSMENT YEAR :20 11 - 12 SHRI SENTHILNATHAN VALLIAPPAN, 19/4, STRINGER STREET, CHENNAI 600 001. [PAN:AADPV9074G] VS. THE INCOME TAX OFFICER, BUSINESS WARD IX(3) CHENNAI. ( PE TITIONER ) ( RESPONDENT ) PETITIONER BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : SHRI SANAT KUMAR RAHA, JCIT / DATE OF HEARING : 05 . 0 1 .201 8 / DATE OF P RONOUNCEMENT : 18 . 0 1 .201 8 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : BY MEANS OF PRESENT MISCELLANEOUS PETITION, THE ASSESSEE SEEKS CLARIFICATION WITH REGAR D RELIEF RESTRICTED IN THE ORDER PASSED BY THE TRIBUNAL IN I.T.A. NO. 790 /MDS/2016 DATED 03 .0 3 .201 7 RELEVANT TO THE ASSESSMENT YEAR 20 11 - 12 . BY REFERRING TO THE PETITION, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AT PARA 6, THE TRIBUNAL HAS GRANT ED RELIEF TO THE EXTENT OF 50% OF THE EXPENSES CLAIMED IN SL. NO. 1 TO 5 AND WHILE GRANTING SO, IN PARA 5, THE TOTAL EXPENDITURE ORIGINALLY CLAIMED BY THE ASSESSEE WAS REPRODUCED. M.P. NO . 1 35 /M/ 17 2 SINCE THERE WAS NO MENTION IN THE ORDER THAT THE RELIEF GRANTED BY THE TRIBU NAL WAS ON THE ADDITIONS MADE BY THE ASSESSING OFFICER AND PRAYED THAT THE ACTUAL DISALLOWANCES RESTRICTED BY THE TRIBUNAL MAY KINDLY BE MAKE IT CLEAR TO THE EXTENT IT WAS ACTUALLY RESTRICTED. 2. ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THAT IT IS CL EAR FROM THE ORDER OF THE TRIBUNAL THAT THE TRIBUNAL HAS NOT ENHANCED THE ASSESSMENT ORIGINALLY MADE BY THE ASSESSING OFFICER, BUT RESTRICTED ON THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. 3. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD . DURING THE COURSE OF HEARING OF THE ORIGINAL APPEAL, THE TRIBUNAL HAS CONSIDERED THE BUSINESS OF THE ASSESSEE, BEING A WHOLESALER IN PAPER, WHICH WAS REQUIRED TO INCUR VARIOUS EXPENSES SUCH AS LORRY FREIGHT, BUSINESS PROMOTION EXPENSES, OFFERING DISCOUNT , VEHICLE/OFFICE MAINTENANCE, ELECTRICITY CHARGES, ETC. WHICH WERE NOT OBJECTED IN TOTO, BUT SINCE THE ASSESSEE HAS PRODUCED SELF MADE VOUCHERS, THE ASSESSING OFFICER PROPORTIONATELY ESTIMATED THE EXPENSES AND MADE THE DISALLOWANCES OF VARIOUS EXPENSES. TH E TRIBUNAL, IN ITS ORDER, REPRODUCED THE ACTUAL EXPENSES FOR THE PURPOSE OF CLARITY, BUT, IT DOES NOT MEAN THAT THE TRIBUNAL RESTRICTED THE DISALLOWANCE AGAINST THE ORIGINAL CLAIM MADE BY THE ASSESSEE. WE MAKE IT CLEAR THAT SINCE THE ASSESSING OFFICER HAS NOT DOUBTED THE EXPENSES INCURRED AND CLAIMED BY THE ASSESSEE, CONSIDERING THE NATURE OF BUSINESS, THE TRIBUNAL RESTRICTED THE M.P. NO . 1 35 /M/ 17 3 DISALLOWANCE TO THE EXTENT OF 50% UPON THE ADDITIONS MADE BY THE ASSESSING OFFICER ON ITEM 1 TO 5. FOR MORE CLARITY, THE DISALLOW ANCE RESTRICTED BY THE TRIBUNAL IS 50% OF ITEM NO. 1 OF .1,31,720/ - , ITEM NO. 2 OF .25,852/ - , ITEM NO. 3 OF .41,192/ - , ITEM N O. 4 OF .48,042/ - AND ITEM NO. 5 OF .50,000/ - ONLY. WITH REGARD TO THE CLAIM OF ELECTRICITY EXPENSES, IF THE ASSESSEE FAILS T O PRODUCE ORIGINAL BILL FOR ELECTRICITY CHARGES DISALLOWED BY THE ASSESSING OFFICER AT .27,000/ - , THEN THE ENTIRE DISALLOWANCE OF .27,000/ - SHOULD BE DISALLOWED AND ACCORDINGLY, THE GROUND RAISED BY THE ASSESSEE WAS ALLOWED FOR STATISTICAL PURPOSES. WE O RDERED AND CLARIFIED ACCORDINGLY. 4 . IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON THE 18 TH JANUARY , 201 8 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBE R CHENNAI, DATED, THE 18 . 0 1 .201 8 VM/ - / COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) / CIT(A), 4. / CIT, 5. / DR & 6. / GF.