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Income Tax Appellate Tribunal - Ahmedabad

Globe Ecologistics Ltd.,, Ahmedabad vs Department Of Income Tax on 16 November, 2010

              IN THE INCOME TAX APPELLATE TRIBUNAL
                       'D' BENCH - AHMEDABAD

     (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL, AM)

                             ITA No.326/Ahd/2011
                                  A. Y.: 2007-08

     The A. C. I., T.(OSD), Circle- 4,    Vs   Globe Ecologistics Ltd.,
     Navjivan Trust Building,                  61, New York Tower-A,
     Off. Ashram Road, Ahmedabad               Thaltej Circle,
                                               S. G. Highway, Ahmedabad
                          PA No. AAACG 3938 J
                (Appellant)                   (Respondent)

             Appellant by          Shri H. K. Lal, DR
             Respondent by         Shri Vinit Moondra, AR

                                    ORDER

PER BHAVNESH SAINI: This appeal by the revenue is directed against the order of the learned CIT(A)-VIII, Ahmedabad dated 16th November, 2010, for assessment year 2007-08.

2. The revenue on ground No.1 challenged the order of the learned CIT(A) in restricting the disallowance out of operational expenses to Rs.3,34,200/- as against disallowance of Rs.13,36,830/. The AO asked the assessee to produce the vouchers of transportation business for considering the operational expenses. The AO on verification of the vouchers of ten randomly selected trips found that substantial amounts claimed under the head "operational expenses" were not supported by vouchers and evidences. The assessee produced the details before the AO and filed explanation which was not found satisfactory by the AO. The AO on the basis of ITA No.326/Ahd/2011 2 ACIT (OSD), Circle-1, Ahmedabad Vs Globe Ecologistics Ltd.

sample concluded that 9.53% of the expenses were not supported by vouchers and accordingly addition was made. The learned CIT(A) considering the explanation of the assessee restricted the disallowance to 25% and restricted the addition to Rs.3,34,200/-.

3. The learned Counsel for the assessee submitted that this issue was considered similarly in assessment year 2006-07 and substantial relief is granted by the Tribunal in the case of the same assessee in ITA No.3277/Ahd/2009 dated 31-05-2011 and the disallowance is restricted to 10%. Copy of the order is filed on record. The assessee's Counsel admitted that the assessee did not prefer any appeal in assessment year under appeal.

4. The DR admitted that since the Tribunal restricted the addition to 10% of the expenses, therefore, he merely relied on the order of the AO.

5. On consideration of the above facts, we do not find any merit in the appeal of the revenue. In the preceding assessment year 2006- 07, the Tribunal on the same issue restricted the addition to 10% of the expenses on the same issue. However, in the assessment year under appeal the learned CIT(A) restricted the addition to 20%. Further, the assessee is not in appeal. Therefore, by following the order of the Tribunal, we dismiss the appeal of the revenue.

6. In the result, ground No.1 of the appeal of the revenue is dismissed.

ACIT (OSD), Circle-1, Ahmedabad Vs Globe Ecologistics Ltd.

7. On ground No.2, the revenue challenged the deletion of Rs.61,925/- on account of delayed payment of employees contribution towards provident fund The learned CIT(A) noted that the date of payments is 28-02-2007 in the impugned order, that means the payments have been made before the due date of filing of the return. Several decisions in support of the contention have been relied upon and addition has been deleted. We find that return of income is filed on 31-10-2007 and the payments have been made prior to the due date of filing of the return. Therefore, the learned CIT(A) rightly deleted the addition. The learned DR submitted that the issue is covered in favour of the assessee by the decision of Hon'ble Delhi High Court in the case of P. M. Electronics, 133 ITR 161. Accordingly, this ground of appeal of the revenue is dismissed.

8. No other point is argued or pressed.

9. In the result, the appeal of the revenue is dismissed.

Order pronounced in the open Court on 05-07-2011 Sd/- Sd/-

        (D. C. AGRAWAL)                          (BHAVNESH SAINI)
     ACCOUNTANT MEMBER                           JUDICIAL MEMBER
Date : 05-07-2011
Lakshmikant/-
 ITA No.326/Ahd/2011                                                  4

ACIT (OSD), Circle-1, Ahmedabad Vs Globe Ecologistics Ltd.

Copy of the order forwarded to:

1. The Appellant

2. The Respondent

3. The CIT concerned

4. The CIT(A) concerned

5. The DR, ITAT, Ahmedabad

6. Guard File BY ORDER Dy. Registrar, ITAT, Ahmedabad