Income Tax Appellate Tribunal - Jaipur
Deputy Commissioner Of Income Tax, ... vs M/S Sand Dune Construction Pvt. Ltd., ... on 5 September, 2017
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 626/JP/17
fu/kZkj.k o"kZ@Assessment Year : 2015-16
The DCIT, cuke M/s Sand Dune Construction Pvt.Ltd.,
Central Circle-4, Vs. D-29, Ashiana Aprtment, Shanti Path,
Jaipur. Tilak Nagar, Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No.: AAFCS2569A
vihykFkhZ@Appellant izR;FkhZ@Respondent
jktLo dh vksj ls@Revenue by : Smt. Roli Agarwal (CIT)
fu/kZkfjrhdh vksj ls@Assessee by : Shri S.L.Podar (Adv.)
lquokbZ dh rkjh[k@Date of Hearing : 04/09/2017
?kks"k.kk dh r kjh[k@Date of Pronouncement: 05/09/2017.
vkns'k@ORDER
PER SHRI VIKRAM SINGH YADAV, A.M.
This is an appeal filed by the Revenue against the order of Ld. CIT(A)- 4, Jaipur dated 26.05.2017 for A.Y. 2015-16 wherein the Revenue has taken following grounds of appeal are as under:-
"Whether on the facts and in the circumstances of the case the CIT(A) was right in deleting the addition out of travelling and convenyance expenses Rs. 1,70,469/-, addition out of commission on sale expenses Rs. 6,41,531/-, addition out of various expenses Rs. 19,77,346/- and addition on late payment of PF of Rs. 11,63,613/- totalling Rs. 39,52,959/-."
2. The relevant facts and findings of the ld. CIT(A) are as under:- "3.3.2 I have duly considered assessee's submission and carefully gone through assessment order passed by the AO. I have also taken a note of ITA No. 626/JP/17 DCIT Vs. M/s Sand dune construction Pvt. Ltd.
factual matrix of the case well as applicable case laws relied upon. AO while finalizing the assessment applying @ 10% on total claimed of expenses of Rs. 17,04,698/= on a/c of travelling & conveyance expenses, insurance and depreciation of cars. It is a fact that during the search operation no incriminating documents suggesting inflation of expenses under these heads have been found from assessee's possession. It is also submitted that the total turnover of assessee company during the year was Rs. 53,56,41,703/= and percentage of expenses incurred are very nominal, details of which are as under:
• Travelling & Conveyance expenses (Rs. 4, 15,601/=) 0.07% • Insurance expenses (Rs. 6,81,734/=) 0.12% • Depreciation on cars (Rs. 6,07, 363/=) 0.11% • General Expenses (Rs. 7,13,197/=) 0.13% • Advertisement & business promotion expenses (Rs. 1,86,32,367/=) 3.47% • Telephone expenses (Rs. 4,27,896/=) 0.07% It is also submitted that AO has also made routine disallowance by applying rate 10% on commission payment of Rs. 64,15,310/= by the assessee, knowing fully were that commission payments are subject to TDS and no discrepancy in this regard has been noticed. It is also a fact that no incriminating document of assessee was found during the search operation conducted against the assessee. It is also a fact that AO's action is not based on the positive result arising out of the enquiry conducted during the assessment proceeding.
In view of facts & circumstances of the case as discussed above, no ad-hoc addition in absence of incriminating documents and without carrying out enquiry by the AO can be sustained. Therefore, additions made of Rs. 1,70,469/= (Gr No. 1), Rs. 6,41,531/= (Gr No. 2) & Rs. 19,77,346/= (Gr No.
3) are hereby deleted. Assessee's appeal in Gr No. 1,2,&3 stands allowed."
"3.5.2 I have duly considered assessee's submission and carefully gone through assessment order passed by the AO. I have also taken a note of factual matrix of the case as available on the case record as well as regal position of the case as per the case laws relied upon by the assessee.
In this case, AO has completed the assessment u/s 143(3) r.w.s. 153B(1)(b) of the Act wherein addition on a/c of disallowance of Rs. 11,63,613/= for PF contribution deposited after the stipulated due date but before the due date 2 ITA No. 626/JP/17 DCIT Vs. M/s Sand dune construction Pvt. Ltd.
of filing of ROI u/s 139(1) of the Act. In view of the following judgments, additions in such cases cannot be sustained:
a) Alom Extrusions 319 ITR 306(SC)
b) Sabari enterprises (2008) 298 ITR 141(Kar)
c) P.M. electrical Ltd (2008) 220 CTR 635 (High Court of Delhi)
d) Vinay Cements 213 CTR 268 (SC) In view of facts and circumstances of the case and respectifully following the aforementioned decisions, additions of disallowance of Rs. 11,63,613/= for PF construction deposited after the stipulated due date but before the due date of filing of ROI u/s 139(1) of the Act, is hereby deleted. Assessee appeal in Gr. No. 5 stands allowed."
3. The ld. DR is heard who has relied on the order of the Assessing Officer.
4. After hearing both the parties and perusing the material available on record, we do not see any infirmity in the order of ld. CIT(A) hence, the same is confirmed and the ground taken by the Revenue is dismissed.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 05/09/2017.
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(Kul Bharat) (Vikram Singh Yadav)
U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Jaipur
Dated:- 05/09/2017
*Santosh
vkns'k dh izfrfyfi vxzsf"kr@Copy of the order forwarded to:
1. vihykFkhZ@The Respondent- The DCIT, Central Circle-4, Jaipur.
2. izR;FkhZ@ The Appellant- M/s Sand Dune Construction Pvt.Ltd., D-29, Ashiana Aprtment, Shanti Path, Tilak Nagar, Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr¼vihy½@The CIT(A) 3 ITA No. 626/JP/17 DCIT Vs. M/s Sand dune construction Pvt. Ltd.
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT,
6. xkMZ QkbZy@ Guard File (ITA No.626/JP/2017) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar.4