Income Tax Appellate Tribunal - Jaipur
M/S Mahaveer Transcarries Pvt. Ltd., ... vs Deputy Commissioner Of Income Tax, ... on 4 September, 2018
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA. No. 635 & 636/JP/2018
fu/kZkj.k o"kZ@Assessment Years : 2013-14 & 2014-15
M/s Mahaveer Transcarriers Pvt. Ltd. cuke The DCIT,
Heera Farms, Dayarampurs, Vs. Circle-7,
Agra Road, Jaipur. Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAHCM 0967 G
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj l@
s Assessee by : Shri Mukesh Khandelwal (C.A.)
jktLo dh vksj ls@ Revenue by : Shri J.C. Kulhari (JCIT)
lquokbZ dh rkjh[k@ Date of Hearing : 29/08/2018
mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 04/09/2018
vkns'k@ ORDER
PER: VIKRAM SINGH YADAV, A.M. These two appeals filed by the assessee are against the order of ld. CIT(A)-3, Jaipur dated 08.03.2018 for the Assessment Years 2013- 14 & 2014-15 respectively. The sole ground of appeal in both the appeals is the confirmation of addition of Rs. 5,00,000/- by the ld. CIT(A) on lump sum basis.
2. In A.Y. 2013-14, the ld. CIT(A) has returned a finding that the expenses of Petrol, diesel, freight and other expenses are not fully 2 ITA No. 635 &636/JP/2018 M/s Mahaveer Trnascarriers Pvt. Ltd. DCIT vouched and some expenses are claimed based on self made vouchers and not supported by the bills, therefore, the said expenses are not fully vouched. The ld. CIT(A) has further returned a finding that disallowance of Rs. 15,00,000/- made by the AO on this account is without any basis and he has found the same to be unreasonable. The ld. CIT(A) has further taken note of the fact that this is the first year of the business operation of the assessee and assessee has disclosed net profit @ 8.99%. The ld. CIT(A) has further noted that the Assessing Officer has disallowed the amount of Rs. 2,00,000/- in assessment year 2015-16. Considering all these facts into account, he has restricted the disallowance made by the AO from Rs. 15,00,000/- to Rs. 5,00,000/- and now the assessee's is in appeal against the said sustenance of disallowance of Rs. 5,00,000/-.
3. During the course of hearing, the ld. AR has submitted that disallowance was made by the AO purely on estimation basis without bringing on record any specific defect in the vouchers or the expenses incurred by the assessee. The ld. AR has further submitted that on the identical set of facts, the Assessing Officer himself has disallowed the expenses to the tune of Rs. 2,00,000/- in the A.Y. 2015-16, therefore, he has submitted that the disallowance so sustained by the ld. CIT(A) may kindly be reduced to the extent of Rs. 2,00,000/- for each of the years under consideration.
4. Per contra, the ld. DR has relied on the finding of the lower authorities and submitted that each year needs to look at separately and individually in the light of specific facts and circumstances of the 3 ITA No. 635 &636/JP/2018 M/s Mahaveer Trnascarriers Pvt. Ltd. DCIT case and the treatment done by the AO in the subsequent year need not be taken as the basis for deletion of the disallowance so made by the Assessing Officer.
5. We have heard the rival contentions and perused the material available on record. The AO has made a lump sum disallowance of Rs. 15,00,000/- holding that some of the payments were incurred in cash without any supporting bills/vouchers or the payments have been supported with self made vouchers only as well as the personal use of expenditure cannot be ruled out. The ld. CIT(A) has found the lumsum disallowance so made by the AO without any basis and unreasonable and has reduced the disallowance to Rs 5,00,000. The Revenue is not in appeal against the said deletion by the ld. CIT(A). Further, it is noted that in A.Y. 2015-16 on the identical set off facts, the AO has issued a show cause to the assessee stating that some of the expenses were debited under the heads petrol expenses, diesel expenses, trip expenses, freight paid expenses and offices expenses which were not fully vouched and some of the vouchers were self made and were not supported by the bills and had made a disallowance of Rs. 2,00,000/-. It is noted that the ld. CIT(A) has himself found the basis adopted by the AO as unreasonable and the same time, he has not specified the basis for sustenance of disallowance of Rs. 5,00,000/-. Though each year is a separate assessment year and the facts of each year needs to be examined and investigated independently, at the same time, where there is no change in the nature of claim made by the assessee in each of the years and on the same set of facts, the AO issues a show-cause to the assessee and in one year, makes a disallowance of Rs 15,00,000 4 ITA No. 635 &636/JP/2018 M/s Mahaveer Trnascarriers Pvt. Ltd. DCIT and in the subsequent year, makes a disallowance of Rs 2,00,000, the said approach of the Revenue is not found reasonable. In light of above discussions, we find it appropriate to restrict the disallowance to Rs 2,00,000 in each of the two years and remaining addition is hereby deleted.
In the result, both the appeals filed by the assessee are partly allowed.
Order pronounced in the open Court on 04/09/2018.
Sd/- Sd/-
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(Vijay Pal Rao) (Vikram Singh Yadav)
U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member
Tk;iqj@Jaipur
fnukad@Dated:- 04/09/2018.
*Santosh
vkns'k dh izfrfyfi vxzfs 'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- M/s Mahaveer Transcarriers Pvt. Ltd., Jaipur.
2. izR;FkhZ@ The Respondent- DCIT, Circle-7, Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr@ CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur.
6. xkMZ QkbZy@ Guard File { ITA No. 635 & 636/JP/2018} vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar.