ACIT, Gwalior v. M/s K.P.Singh Bhadoriya, Gwalior

ITA 318/AGR/2007 | 2004-2005
Pronouncement Date: 25-05-2010

Appeal Details

RSA Number 31820314 RSA 2007
Assessee PAN AAFFK6124L
Bench Agra
Appeal Number ITA 318/AGR/2007
Duration Of Justice 2 year(s) 9 month(s) 22 day(s)
Appellant ACIT, Gwalior
Respondent M/s K.P.Singh Bhadoriya, Gwalior
Appeal Type Income Tax Appeal
Pronouncement Date 25-05-2010
Appeal Filed By Department
Bench Allotted DB
Tribunal Order Date 25-05-2010
Date Of Final Hearing 16-04-2010
Next Hearing Date 16-04-2010
Assessment Year 2004-2005
Appeal Filed On 03-08-2007
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH AGRA BEFORE SHRI R.K. GUPTA JUDICIAL MEMBER AND SHRI P.K. BANSAL ACCOUNTANT MEMBER ITA NO.318/AGR/2007 ASST. YEAR: 2004-05 ASSTT. C.I.T. CIRCLE 3 VS. M/S. K.P. SINGH BHADORIYA GWALIOR. E-46 BALWANT NAGAR GWALIOR. (PAN : AAFFK 6124 L) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.R. SAHU JR. D.R. RESPONDENT BY : NONE ORDER PER P.K. BANSAL A.M.: THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST T HE ORDER OF THE CIT(A) DATED 18.04.2007 AGAINST THE RELIEF GIVEN BY THE CIT(A) O UT OF VARIOUS EXPENSES DISALLOWED BY THE A.O. 2. NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE. WE THEREFORE DECIDED TO DISPOSE OF THIS APPEAL AFTER HEARING THE LD. D.R. 3. BRIEF FACTS OF THE CASE ARE THAT THE A.O. DISALL OWED A SUM OF RS.10 95 000/- OUT OF VARIOUS EXPENSES INCURRED BY THE FIRM FOR THE PURPOSE OF TH E BUSINESS OF THE FIRM. WHEN THE MATTER WENT BEFORE THE CIT(A) THE CIT(A) REDUCED THE DISALLOWA NCE TO ONLY RS.1 00 00/- BY OBSERVING AS UNDER :- 2 I HAVE CONSIDERED THE RIVAL CONTENTIONS AS PER THE ASSESSMENT ORDER AND AS ARGUED BY THE LD. COUNSEL DURING THE COURSE OF APPE AL PROCEEDINGS. GROUNDS NO.1 TO 6 ARE AGAINST THE VARIOUS ADDITIONS MADE BY THE ASSES SING OFFICER UNDER DIFFERENT HEADS AS NOTED IN THE ASSESSMENT ORDER WHICH ARE NOT REPEATE D HERE FOR THE SAKE OF BREVITY. ON THE OTHER HAND THE LD. COUNSEL FOR THE APPELLANT ARGUE D AS REPRODUCED ABOVE ALSO THAT ALL THE DISALLOWANCES HAVE BEEN MADE ON ADHOC BASIS AND IN THE ARBITRARY AND CAPRICIOUS MANNER. IT WAS ALSO ARGUED THAT THE BOOKS OF ACCOU NTS WERE TAX AUDITED WHICH WERE ALSO DULY PRODUCED AND EXAMINED BY THE ASSESSING OFFICER . IT WAS FURTHER ARGUED THAT BOTH G.P. & N.P. WERE BETTER AS COMPARED TO PRECEDING TW O YEARS AS FOLLOWS :- A.Y. GROSS RECEIPTS/ G.P. PERCENTAGE N.P. PERCENTAGE TURNOVER 2004-05 RS.114635911 RS.14637874/- 12.76% RS.5660 610 4.94% 2003-04 RS.114328964 RS.12932114/- 11.31% RS.4710 352/- 4.12% 2002-03 RS.114114801 RS.13535044/- 11.86% RS.4693 325/- 4.11% AFTER CONSIDERING THE ABOVE IT EMERGES THAT THE AD DITION HAS BEEN MADE BY THE ASSESSING OFFICER ON THE BASIS OF SOME VOUCHERS AND BILLS MISSING AND PARTLY NOT MAINTAINED UNDER DIFFERENT HEADS. HOWEVER IT IS E VIDENT THAT THE APPELLANTS NATURE OF BUSINESS IS SUCH THAT IT IS NOT POSSIBLE OR PRACTIC ABLE TO MAINTAIN PROPER VOUCHERS UNDER THE HEADS AS NOTED BY THE ASSESSING OFFICER. THE L ABOUR CHARGES ARE GENERALLY VERIFIABLE FROM THE RELEVANT RECORDS AND REGISTERS AS ALSO FRO M THE MUSTER ROLLS WHEREAS THE BILLS AS NOTED BY THE ASSESSING OFFICER HAVE NOT BEEN PRODUC ED COMPLETELY. SIMILARLY SITE EXPENSES WHICH INCLUDE THE GENERAL ITEMS AND EXPENS ES INCURRED THEREUPON CANNOT BE EXPECTED TO BE FULLY VOUCHED. SIMILAR IS FOR REPAI R AND MAINTENANCE. AS REGARDS SALARY IS CONCERNED THE BILLS AND VOUCHERS ARE NOT MAINTAINE D FOR THE SAME WHICH IS SEPARATELY VERIFIABLE FROM THE RELEVANT RECORDS AND REGISTERS AS ALSO FROM THE ATTENDANCE REGISTER AND PROOF WITH REGARD TO THE PAYMENT TOWARDS THE SA ME. STAFF WELFARE AND OFFICE EXPENSES ALSO INCLUDE ITEMS FOR WHICH PROPER BILLS MAY NOT BE POSSIBLE OR PRACTICABLE. TRAVELLING EXPENSES ARE NORMALLY PAID ON DETAILS AN D VOUCHERS FURNISHED BY THE STAFF TO WHOM TO SAME ARE PAID. ON THE OTHER HAND THE POSS IBILITY OF PERSONAL USE OF TELEPHONE VEHICLES ETC. CANNOT BE RULED OUT MORE SO IN THE AB SENCE OF CALLER BOOK AND LOG BOOK RESPECTIVELY. FURTHER IT IS EVIDENT THAT SOME OTH ER EXPENSES AS NOTED BY THE ASSESSING OFFICER HAVE NOT BEEN FULLY SUPPORTED BY VOUCHERS. CONSIDERING THE ENTIRE FACTS OF THE CASE AS DISCUSS ED ABOVE IT WOULD BE REASONABLE AND IN THE INTEREST OF JUSTICE TO CONFIR M AN ADDITION OF RS.1 00 000/- SO AS TO TAKE CARE OF PERSONAL EXPENSES UNDER DIFFERENT HEAD S AS STATED ABOVE AND ALSO TO TAKE CARE OF UNVOUCHED EXPENSES CLAIMED WHERE IT WAS POS SIBLE TO MAINTAIN THEM. THE APPELLANT HAS RELIED UPON THE ORDER IN APPEAL NO.15 4/IT//06-07/GWL DATED 28.12.06 FOR ASSTT. YEAR 2003-04 IN WHICH THE ADDITION OF RS.15 000/- ONLY WAS CONFIRMED. HOWEVER CONSIDERING THE ABOVE NOTED FACTS AS ALSO THE VOLUM E OF APPELLANTS BUSINESS EXPENSES CLAIMED PART OF WHICH HAVE BEEN DISALLOWED AND THE OTHER FACTORS AS STATED ABOVE THE ADDITION OF RS.1 00 000/- HAS BEEN CONFIRMED. THE APPELLANT THUS GETS A RELIEF OF RS.9 95 000/-. 4. LD. D.R. RELIED ON THE ORDER OF THE A.O. 3 5. WE HAVE HEARD THE LD. D.R. AND PERUSED THE MATER IAL ON RECORD ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. WE NOTED THAT THE ASSES SEE HAS MAINTAINED REGULAR BOOKS OF ACCOUNTS. THE ACCOUNTS HAD DULY BEEN AUDITED. THE AUDITED RE PORT IN THE PRESCRIBED FORM NO.3CD WAS DULY SUBMITTED BY THE ASSESSEE. THE GROSS PROFIT AND TH E NET PROFIT HAVE IMPROVED DURING THE YEAR AS COMPARED TO THE EARLIER YEAR AS IS APPARENT FROM TH E FINDING OF THE CIT(A). NO COGENT MATERIAL OR EVIDENCE WAS BROUGHT TO OUR KNOWLEDGE WHICH MAY PROVE THAT THE FINDING OF THE CIT(A) WAS NOT CORRECT. THE CIT(A) HAS APPRECIATED THE FACTS OF THE CASE EXTENSIVELY AND CAME TO THE CONCLUSION THAT IT WOULD BE REASONABLE AND IN THE I NTEREST OF JUSTICE TO REDUCE THE DISALLOWANCE TO RS.1 00 000/-. HE HAS ALSO REFERRED TO THE ORDER R ELATING TO THE A.Y. 2003-04 IN WHICH DISALLOWANCE ONLY TO THE EXTENT OF RS.15 000/- WAS SUSTAINED. 6. THE LD. D.R. DID NOT DENY THIS FACT. UNDER THES E FACTS AND CIRCUMSTANCES WE DO NOT FIND ANY ILLEGALITY OR INFIRMITY IN THE ORDER OF THE CIT (A). WE ACCORDINGLY CONFIRM THE ORDER OF THE CIT(A). 7. IN THE RESULT APPEAL FILED BY THE REVENUE STAND S DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 25.05.2010) . SD/- SD/- (R.K. GUPTA) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 25 TH MAY 2010. PBN/* 4 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR ITAT AGRA BENCH AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL AGRA TRUE COPY