Shri Gajendrasinh Lalsinh Rahewar, Sabarkantha v. The Income tax Officer,S.K. Ward-3,, Himatnagar

ITA 2197/AHD/2009 | 2005-2006
Pronouncement Date: 30-09-2011 | Result: Partly Allowed

Appeal Details

RSA Number 219720514 RSA 2009
Assessee PAN AAUPR8319R
Bench Ahmedabad
Appeal Number ITA 2197/AHD/2009
Duration Of Justice 2 year(s) 2 month(s) 17 day(s)
Appellant Shri Gajendrasinh Lalsinh Rahewar, Sabarkantha
Respondent The Income tax Officer,S.K. Ward-3,, Himatnagar
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 30-09-2011
Date Of Final Hearing 15-09-2011
Next Hearing Date 15-09-2011
Assessment Year 2005-2006
Appeal Filed On 13-07-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH . .. . . .. . !'# !'# !'# !'# $ $ $ $ %% % & %% % & %% % & %% % & ' ' ' ' ( # ( # ( # ( # BEFORE S/SHRI G.D. AGARWAL VICE-PRESIDENT AND MUKUL KR. SHRAWAT JUDICIAL MEMBER) ITA NO.2197/AHD/2009 [ASSTT. YEAR : 2005-2006] GAJENDRASINH LALSINH RAHEWAR PROP. MARUTI CONSTRUCTION AT & POST : RUPAL TAL. HIMMATNAGAR DIST. SABARKANTHA. PAN : AAUPR 8319 R /VS. ITO S.K. WARD-3 HIMMATNAGAR. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) .& / 0 (/ ASSESSEE BY : SHRI A.C. SHAH ' / 0 (/ REVENUE BY : SHRI R.K. VOHRA DATE OF HEARING : 15 TH AUGUST 2011 DATE OF PRONOUNCEMENT : 30 TH SEPTEMBER 2011 (2 / O R D E R PER G.D. AGARWAL VICE-PRESIDENT : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEAL S)-X AHMEDABAD DATED 13.04.2009 ARISING OUT OF THE ORDER OF THE ASSESSIN G OFFICER UNDER SECTION 144OF THE INCOME TAX ACT 1961. 2. THE ONLY GROUND IN THIS APPEAL BY THE ASSESSEE I S AGAINST DISALLOWANCE OF RS.3 00 000/- SUSTAINED BY THE CIT(A) OUT OF LABOUR EXPENSES. 3. AT THE TIME OF HEARING BEFORE US IT IS STATED B Y THE LEARNED COUNSEL THAT THE CIT(A) HIMSELF HAS RECORDED THAT OUT OF TOTAL L ABOUR PAYMENT OF RS.80 12 017/- THE ASSESSEE HAS PAID TO THE PETTY C ONTRACTORS TO THE EXTENT OF RS.62 25 232/- WHICH IS VERIFIABLE BECAUSE THE PET TY CONTRACTORS WERE PRODUCED AND THEY ADMITTED THE WORK DONE BY THEM AND PAYMENT RECEIVED THEREFORE. THUS THE REMAINING PAYMENT TO PETTY CONTRACTORS RE MAINED UNVERIFIABLE ITA NO.2197/AHD/2009 -2- THEREFORE HE SUSTAINED THE DISALLOWANCE AT RS.3 00 000/- AS AGAINST RS.5 00 000/- DISALLOWED BY THE AO. HE HAS STATED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CONSTRUCTION WORK OF CANALS. TH AT FOR SUCH CONSTRUCTION THE ASSESSEE EMPLOYED THE PETTY CONTRACTORS AND ON THE BASIS OF WORK DONE BY THEM THE PAYMENT IS MADE. THE ENTIRE PAYMENT IS VOUCHED AND VERIFIABLE. MERELY BECAUSE THE ASSESSEE COULD NOT PRODUCE SOME OF THE PETTY CONTRACTORS THAT TOO AFTER LAPSE OF SEVERAL YEARS IT CANNOT BE SAID THA T THE PAYMENT IS UNVERIFIABLE. HE ALSO SUBMITTED THAT IN ANY CASE THE DISALLOWANC E OF RS.3 LAKHS SUSTAINED BY THE CIT(A) IS EXCESSIVE. THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW AND HE HAS STATED THAT OUT OF THE DISALLOWANCE MADE BY THE AO AT RS.5 LAKHS THE CIT(A) HAS ALREADY REDUCED TH E DISALLOWANCE TO RS.3 LAKHS AND THEREFORE NO FURTHER RELIEF SHOULD BE ALL OWED TO THE ASSESSEE. 4. WE HAVE CAREFULLY CONSIDERED THE ARGUMENTS OF BO TH THE SIDES AND PERUSED THE MATERIAL PLACED BEFORE US. AFTER CONSI DERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND ARGUMENTS OF BOTH THE SIDES IN OUR OPINION IT WOULD MEET ENDS OF JUSTICE IF THE DISALLOWANCE IS RESTRICTED TO RS.1 50 000/-. WE THEREFORE RESTRICT THE DISALLOWANCE OUT OF LABOU R EXPENSES TO RS.1 50 000/- AND THUS THE ASSESSEE GETS A RELIEF OF RS.1 50 000/ -. 5. IN THE RESULT ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN OPEN COURT THE DATE MENTIONED O N THE FIRST PAGE OF THIS ORDER. SD/- SD/- ( %% % & %% % & %% % & %% % & /MUKUL KR. SHRAWAT ) ' ' ' ' /JUDICIAL MEMBER ( . .. . . .. . G.D. AGARWAL) !'# !'# !'# !'# /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT.