Income Tax Appellate Tribunal - Chennai
V C Arunai Vadivelan, Chennai vs Asst.Commr.Of Income Tax. Non Corp. ... on 22 March, 2018
आयकर अपील
य अ धकरण, 'सी' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL , 'C' BENCH, CHENNAI
ी एन.आर
एन आर.एस
आर एस. न याियक सद य एवं ए. मोहन अलंकामणी, लेखा सद य के सम
एस गणेशन, याियक
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER
आयकर अपील सं./I.T. A. No.2282/Chny/ 2017
( नधा रण वष / Assessment Year: 2014-15)
Shri V C Arunai Vadivelan, V The Asst. Commissioner of
No.74, New Street, s Income Tax,
Mannady, Chennai - 600 001. Non-Corporate Circle 11,
Chennai.
PAN: BJEPA6920P
(अपीलाथ /Appellant) ( यथ /Respondent)
अपीलाथ क ओर से /Appellant by : Shri T.T. Durairaj Kandiar, CA
यथ की ओर से /Respondent by : Shri N. Madhavan, Addl. CIT
सन
ु वाई क तार ख/D at e of he ar i ng : 24.01.2018
घोषणा क तार ख /D at e of Pr on o unc em en t : 22.03.2018
आदे श / O R D E R
Per A. Mohan Alankamony, AM:-
This appeal by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals)- 13, Chennai, dated 18.07.2017 in ITA No.77/CIT(A)-13/2016-17 for the assessment year 2014-15 passed U/s.250(6) r.w.s. 143(3) of the Act.
2 ITA No. 2282/Chny/2017
2. The assessee has raised several grounds in his appeal however the crux of the issue is that the Ld.CIT(A) has erred by only granting partial relief to the assessee as follows:
Amount Amount claimed Amount Sl. disallowed by Nature of expenses by the assessee disallowed by No. Ld.CIT(A) (in Rs.) Ld.AO (in Rs.) (in Rs.) 1 Business promotion 6,76,049 1,35,210 1,35,210 expense 2 Telephone Expenses 66,445 9,970 6,646 3 Travelling Expenses 40,819 6,125 4,083 4 Car Petrol Charges 94,765 14,215 9,478 5 Petrol Expenses 1,36,235 20,435 13,625 6 Vehicle maintenance 1,47,113 22,070 14,711 7 Weighing & 4,03,770 80,754 60,566 Unloading Charges 8 Transport charges 2,93,46,961 29,34,695 29,34,695 Total 3,09,12,157 32,23,474 31,79,016
3. The brief facts of the case are that the assessee is an individual and proprietor of M/s. Arun Steel Agencies engaged in the trading of steel and other related items, filed his return of income for the assessment year 2014-15 electronically on 10.09.2014 admitting total income of Rs.1,44,52,330/-. Initially the return was processed U/s.143(1) of the Act on 01.07.2015 and subsequently the case was selected for scrutiny under CASS and notice U/s.143(2) of the Act was issued on 28.08.2015. Finally the assessment was completed U/s.143(3) of the Act on 28.11.2016 wherein the Ld.AO made addition of 3 ITA No. 2282/Chny/2017 Rs.32,23,474/- by disallowing various expenditures claimed by the assessee as stated herein above.
4. During the course of scrutiny assessment, it was observed by the Ld.AO that the assessee had claimed various expenses towards which he could not produce vouchers or furnish details. Further the Ld.AO observed that the assessee have claimed the entire petrol expense for his car and no allowance was estimated for personal use. Therefore the Ld.AO disallowed 20% of business promotion expenses, 15% of car maintenance expenses, 20% on weighing and unloading charges and 10% on transport charges. On appeal the Ld.CIT(A) granted partial relief to the assessee based on estimate basis. Acordingly with respect to the aggregate disallowance of Rs.32,23,474/- made by the Ld.AO, the Ld.CIT(A) sustained the same for Rs.31,79,016/-. Thus the entire addition made by the Ld.AO and the amount sustained by the Ld.CIT(A) is only on estimate basis. However considering the prayer of the Ld.AR that the assessee had genuinely incurred the expenditure claimed by him, we further grant relief of Rs.6,79,060/- to the assessee and thereby 4 ITA No. 2282/Chny/2017 we sustain the addition of Rs.25,00,000/-. It is ordered accordingly.
5. In the result the appeal of the assessee is partly allowed as indicated herein above.
Order pronounced on the 22nd March, 2018 at Chennai.
Sd/- Sd/-
(एन.आर.एस. गणेशन) (ए. मोहन अलंकामणी)
(N.R.S. Ganesan) (A. Mohan Alankamony)
याियक सद य/Judicial Member लेखा सद य/Accountant Member
चे#नई/Chennai,
$दनांक/Dated 22nd March, 2018
RSR
आदे श क त'ल(प अ)े(षत/Copy to:
1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय,
ु त (अपील)/CIT(A)
4. आयकर आय,
ु त/CIT 5. (वभागीय त न/ध/DR 6. गाड फाईल/GF