Shell N Tube Private Limited , Maharashtra V. A.C.I.T.,Circle-12(2), Kolkata

MA 93/KOL/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0577 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 11-12-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 21-10-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: P K SANGHAI
• Keywords: Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT] [THROUGH VIRTUAL COURT] M.A. NO. 93/KOL/2020 (ARISING OUT OF ITA NO. 999/KOL/2019) ASSESSMENT YEAR: 2014-15 M/S. SHELL N TUBE PVT. LTD...............................................................................................APPELLANT 3, GULMOHAR ORCHIDS, 29/37, SAHNEY SUJAN PARK, LULLANAGAR, PUNE, MAHARASHTRA 411 040. [PAN: AADCS 5807 M] ACIT, CIRCLE 12(2), KOLKATA.................................RESPONDENT P-7, CHOWRINGHEE SQUARE, KOLKATA 700 069. APPEARANCES BY: SHRI P.K. SANGHAI, AR APPEARING ON BEHALF OF THE ASSESSEE. SMT. RANU BISWAS, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : DECEMBER 11, 2020 DATE OF PRONOUNCING THE ORDER : DECEMBER 11, 2020 ORDER PER P.M. JAGTAP, VICE-PRESIDENT BY THIS MISCELLANEOUS APPLICATION, THE ASSESSEE IS SEEKING RECTIFICATION OF THE MISTAKES ALLEGED TO HAVE CREPT IN THE ORDER OF THE TRIBUNAL DATED JUNE 5, 2020 BEING ITA NO. 999/KOL/2019. 2. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE ISSUE RELATING TO DISALLOWANCE OF RS. 12,78,886/- MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) OUT OF TRAVELLING AND CONVEYANCE EXPENSES AND CAR HIRE CHARGES WAS DECIDED BY THE TRIBUNAL VIDE PARAGRAPH NO. 6 OF ITS ORDER AS UNDER: 6. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES ON THIS ISSUE AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ALTHOUGH THE LEARNED COUNSEL FOR THE ASSESSEE HAS INVITED MY ATTENTION TO THE DETAILS OF THE EXPENSES IN QUESTION GIVEN AT 2 MA NO. 93/KOL/2020 ASSESSMENT YEAR: 2014-15 M/S. SHELL N TUBE PVT. LTD. PAGE NO. 4 TO 6 OF THE PAPER BOOK, A PERUSAL OF THE SAID DETAILS SHOWS THAT IT IS NOTHING BUT AN EXTRACT OF THE LEDGER ACCOUNT OF TRAVELLING EXPENSES WHICH DOES NOT GIVE ANY RELEVANT DETAILS IN ORDER TO PROVE THE BUSINESS EXPEDIENCY OF THE SAME. MOREOVER, NO SUPPORTING EVIDENCE WHATSOEVER HAS BEEN FILED BY THE ASSESSEE IN THE FORM OF LOG BOOKS, TICKET BILLS / VOUCHERS ETC. TO SHOW THAT THE EXPENSES IN QUESTION AGGREGATING TO RS. 63,94,428/- WERE WHOLLY AND EXCLUSIVELY INCURRED FOR THE PURPOSE OF BUSINESS. THE ASSESSEE HAS ALSO FAILED TO OFFER ANY SATISFACTORY EXPLANATION AS REGARDS THE SUBSTANTIAL INCREASE IN THE EXPENDITURE CLAIMED BY IT ON TRAVELLING AND CONVENIENCE AND CAR HIRE CHARGES DURING THE YEAR UNDER CONSIDERATION AS COMPARED TO THE IMMEDIATELY PRECEDING YEAR AS POINTED OUT BY THE AO. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE WAS DIRECTED TO FURNISH A COMPARATIVE CHART SHOWING YEAR-WISE DETAILS OF SIMILAR EXPENSES CLAIMED AND ALLOWED IN THE EARLIER YEARS. HE HOWEVER HAS FAILED TO FURNISH THE SAME. KEEPING IN VIEW ALL THESE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW THAT DISALLOWANCE OF 20% OF THE TOTAL TRAVELLING AND CONVEYANCE EXPENSES AS WELL AS CAR HIRE CHARGES AS MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) ON ACCOUNT OF UNVERIFIABLE ELEMENT INVOLVED THEREIN IS FAIR AND REASONABLE AND SUSTAINING THE SAME, I DISMISS GROUND NO. 4 OF THE ASSESSEES APPEAL. 3. AT THE TIME OF HEARING BEFORE THE TRIBUNAL, THE LEARNED COUNSEL FOR THE ASSESSEE HAS INVITED MY ATTENTION TO THE DETAILS FURNISHED AT PAGE NO. 3 OF THE PAPER BOOK GIVING YEAR-WISE DETAILS OF TRAVELLING AND CONVEYANCE EXPENSES CLAIMED BY THE ASSESSEE. HE HAS CONTENDED THAT THE COMPARATIVE CHART SHOWING YEAR-WISE DETAILS OF THE RELEVANT EXPENSES THUS WAS FURNISHED BY THE ASSESSEE AND THERE IS A MISTAKE IN THE ORDER OF THE TRIBUNAL TO STATE THAT THERE WAS A FAILURE OF THE ASSESSEE TO FURNISH THE SAID COMPARATIVE CHART SHOWING YEAR-WISE 3 MA NO. 93/KOL/2020 ASSESSMENT YEAR: 2014-15 M/S. SHELL N TUBE PVT. LTD. DETAILS OF THE RELEVANT EXPENSES. I AGREE WITH THIS CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE. IT IS HOWEVER OBSERVED FROM THE SAID CHART THAT THE TRAVELLING AND CONVEYANCE EXPENSES CLAIMED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION AT RS. 48,08,514/- WERE SUBSTANTIALLY HIGHER THAN THE SIMILAR EXPENSES CLAIMED BY THE ASSESSEE AT RS. 3,14,894/- AND RS. 43,45,108/- DURNG THE IMMEDIATELY PRECEDING TWO YEAR I.E. A.Y. 2012-13 AND 2013-14. AS ALREADY NOTED BY THE TRIBUNAL IN ITS ORDER, NO SATISFACTORY EXPLANATION WAS OFFERED BY THE ASSESSEE AS REGARDS THIS SUBSTANTIAL INCREASE. THE SECOND MISTAKE THAT THE LEARNED COUNSEL FOR THE ASSESSEE HAS POINTED OUT IN THE ORDER OF THE TRIBUNAL IS THAT THE RELEVANT DETAILS OF TRAVELLING EXPENSES CLAIMED DURING THE YEAR UNDER CONSIDERATION WERE FURNISHED BY THE ASSESSEE SEPARATELY ON RECORD BUT THE TRIBUNAL HAS FAILED TO TAKE NOTE OF THE SAME. IT IS NO DOUBT TRUE THAT SUCH DETAILS WERE FURNISHED BY THE ASSESSEE, BUT A PERUSAL OF THE SAME SHOWS THAT THE PURPOSE OF THE VARIOUS VISITS ENUMERATED THEREIN WAS NOT SPECIFICALLY MENTIONED BY THE ASSESSEE TO ESTABLISH THAT THE TRAVELLING EXPENSES CLAIMED BY IT WERE WHOLLY AND EXCLUSIVELY INCURRED FOR THE PURPOSE OF BUSINESS. MOREOVER, AS SPECIFICALLY POINTED OUT BY THE AO IN THE ASSESSMENT ORDER AND TAKEN NOTE OF BY THE TRIBUNAL IN PARAGRAPH NO. 5 AS WELL AS PARAGRAPH NO. 6 OF ITS ORDER, THERE WAS A FAILURE ON THE PART OF THE ASSESSEE TO PRODUCE THE RELEVANT DOCUMENTARY EVIDENCE IN THE FORM OF LOG BOOKS, TICKETS, VOUCHERS ETC. TO SHOW THAT THE IMPUGNED EXPENSES WERE INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. KEEPING IN VIEW ALL THESE FACTS OF THE CASE, I AM OF THE VIEW THAT EVEN THOUGH THERE IS AN APPARENT MISTAKE IN THE ORDER OF THE TRIBUNAL TO TAKE NOTE OF THE YEAR-WISE DETAILS OF THE RELEVANT EXPENSES FURNISHED BY THE ASSESSEE AS WELL AS 4 MA NO. 93/KOL/2020 ASSESSMENT YEAR: 2014-15 M/S. SHELL N TUBE PVT. LTD. THE DETAILS OF TRAVELLING EXPENSES FURNISHED SEPARATELY AS POINTED OUT BY THE ASSESSEE IN THE PRESENT APPLICATION, THE SAME IS NOT HAVING ANY BEARING ON THE ULTIMATE DECISION TAKEN BY THE TRIBUNAL WHILE CONFIRMING THE DISALLOWANCE MADE BY THE AO AND SUSTAINED BY THE LD. CIT(A) OUT OF THE RELEVANT EXPENSES FOR THE UNVERIFIABLE ELEMENT INVOLVED THEREIN AS WELL AS THE FAILURE OF THE ASSESSEE TO ESTABLISH BUSINESS EXPEDIENCEY OF THE SAME. I, THEREFORE, FIND NO MERIT IN THIS MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE AND DISMISS THE SAME. 4. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2020. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 11/12/2020 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. SHELL N TUBE PVT. LTD., 3, GULMOHAR ORCHIDS, 29/37, SAHNEY SUJAN PARK, LULLANAGAR, PUNE, MAHARASHTRA 411 040. 2. ACIT, CIRCLE 12(2), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR ITAT, KOLKATA