Classic Cargo Carriers, Kolkata v. ITO, Ward - 1, Balurghat, Uttar Dinajpur

ITA 226/KOL/2011 | 2006-2007
Pronouncement Date: 14-03-2011 | Result: Partly Allowed

Appeal Details

RSA Number 22623514 RSA 2011
Bench Kolkata
Appeal Number ITA 226/KOL/2011
Duration Of Justice 1 month(s) 3 day(s)
Appellant Classic Cargo Carriers, Kolkata
Respondent ITO, Ward - 1, Balurghat, Uttar Dinajpur
Appeal Type Income Tax Appeal
Pronouncement Date 14-03-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 14-03-2011
Assessment Year 2006-2007
Appeal Filed On 10-02-2011
Judgment Text
SMC(A) IN THE INCOME TAX APPELLATE TRIBUNAL SMC(A) BENCH : KOLKATA () BEFORE ) [BEFORE HONBLE SRI MAHAVIR SINGH JM] / I.T.A NO. 226/KOL/2011 !' !' !' !'/ // / ASSESSMENT YEAR: 2006-07 CLASSIC CARGO CARRIERS VS INCOME TAX OFFICER W D-1 BALURGHAT. (PAN-AADFC 9154 A) ($% /APPELLANT ) (&'$%/ RESPONDENT ) FOR THE APPELLANT: SHRI S. L. KOCHAR FOR THE RESPONDENT: SHRI P. P. SARKAR () / ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF THE ORDER OF CIT(A) JALPAIGURI IN APPEAL NO.37/BLG/CIT(A)/JAL/2008-09 VIDE ORDER DATED 22.12 .2010. THE ASSESSMENT WAS FRAMED BY ITO WARD-1 BALURGHAT U/S 143(3) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2006-07 VIDE HIS ORDER DA TED 31.12.2008. 2. THE FIRST ISSUE IN THIS APPEAL OF THE ASSESSEE I S AGAINST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF EXPENSES ON ESTIMATE BASIS AT R S. 2 LAC. FOR THIS THE ASSESSEE HAS RAISED THE FOLLOWING GROUND NO.1: 1. FOR THAT THE LD.CIT(A) ERRED IN CONFIRMING THE D ISALLOWANCE OF RS.2 00 000/- IN RESPECT OF CLAIM OF THE APPELLANT RELATING TO V ARIOUS REVENUE EXPENSES AS NOTED IN THE APPEAL ORDER. 3. I HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE COULD NOT PRODUCE COMPLETE V OUCHERS IN RESPECT OF VARIOUS EXPENSES I.E. LABOUR CHARGES SALARY AND PERKS CONVEYANCE GENER AL EXPENSES POSTAGE RENT STATIONERY TRAVELLING AND TELEPHONE CHARGES. THE TOTAL EXPENS ES WORKED OUT AT RS.11 72 212/- AND THE ASSESSING OFFICER DISALLOWED 20% IN THE ABSENCE OF COMPLETE VOUCHER. THE ASSESSEE BEFORE ASSESSING OFFICER STATED THAT NO BUSINESS CAN BE CA RRIED OUT WITHOUT INCURRING EXPENDITURE AND MAINTENANCE OF PROPER VOUCHERS IS NOT POSSIBLE. AC CORDING TO HIM THE VOUCHERS ARE SELF MADE VOUCHERS. THE ASSESSING OFFICER DISALLOWED 20% AND ADDED TO THE RETURNED INCOME OF THE ASSESSEE AMOUNTING TO RS.2 34 442/- AND CIT(A) REST RICTED THE ADDITION AT RS. 2 LACS. NOW AGGRIEVED ASSESSEE IS IN SECOND APPEAL BEFORE TRIB UNAL. 2 4. I FIND IT IS AN ADMITTED FACT THAT THE COMPLETE VOU CHERS ARE NOT AVAILABLE WITH ASSESSEE RATHER VOUCHERS AVAILABLE ARE SELF MADE VOUCHERS. THE ASSESSEE FAIRLY CONCEDED THAT A REASONABLE AMOUNT OF DISALLOWANCE WILL MEET THE END OF JUSTICE. IT IS ALSO A FACT THAT BOTH THE AUTHORITIES BELOW HAVE ESTIMATED THE DISALLOWANCE I .E. ASSESSING OFFICER DISALLOWED 20% AND CIT(A) RESTRICTED THE DISALLOWANCE AT RS. 2 LAC. I IN ALL FAIRNESS ESTIMATE THE DISALLOWANCE FOR NON-MAINTENANCE OF VOUCHERS AT RS.75 000/- AND DIRE CT THE ASSESSING OFFICER TO ADD ONLY THIS AMOUNT TO THE TOTAL INCOME OF THE ASSESSEE. THIS I SSUE OF THE ASSESSEES APPEAL IS PARTLY ALLOWED. 5. NEXT ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGA INST CONFIRMATION OF DISALLOWANCE BY CIT(A) OF INTEREST AT RS.8 499/-. FOR THIS THE AS SESSEE HAS RAISED THE FOLLOWING GROUND NO.2: 2. FOR THAT THE LD. CIT(A) OUGHT TO HAVE ACCEPTED T HE ADDITIONAL GROUND OF APPEAL IN RESPECT OF DISALLOWANCE OF INTEREST OF R S.8499/- AND DELETED THE DISALLOWANCE. 6. I HAVE HEARD RIVAL CONTENTIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THE ASSESSEE HAS PAID INTEREST ON UNSECURED LOAN TO SRI PAWAN KUMAR SETHIA IN EXCESS OF 12%. THE UNSECURED LOAN IS GENUINE AND NOT DOUBTED BY TH E REVENUE. THE ASSESSING OFFICER DISALLOWED THE EXCESS INTEREST IN EXCESS TO 12% AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE AT RS.8499/-. THE CIT(A) SIMPLY CONFIRMED AND NOT ADJUDICATED THE ADDITIONAL GROUND RAISED BEFORE HIM. I AM OF THE VIEW THAT THIS BEIN G A SMALL ISSUE AND THE GENUINENESS OF CREDIT IS NOT IN DOUBT THE INTEREST DISALLOWED IS WITHOUT ANY REASON AND ACCORDINGLY I DELETE THE SAME. THIS ISSUE OF THE ASSESSEES APPEAL IS ALLOWED. THI S WILL NOT CREATE ANY PRECEDENT AS THIS IS DECIDED IN PARTICULAR FACTS OF THIS CASE AND WILL N OT APPLY AS RATIO TO OTHER CASES. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. 8. ORDER PRONOUNCED IN OPEN COURT ON 14 TH DAY OF MARCH 2011. SD/- (MAHAVIR SINGH) JUDIC IAL MEMBE ( *+ *+ *+ *+) )) ) DATED 14 TH DAY OF MARCH 2011 - ./ 0 JD.(SR.P.S.) () 1 &2 3(2!4- COPY OF THE ORDER FORWARDED TO: 1 . $% / APPELLANT M/S. CLASSIC CARGO CARRIERS 170/2C AJ C BOSE ROAD 1 ST FLOOR KOLKATA-700 014. 3 2 &'$% / RESPONDENT ITO WARD-1 BALURGHAT. 3 . ) / THE CIT(A) JALPAIGURI 4. ) ( )/ CIT JALPAIGURI 5 . ;< & / DR KOLKATA BENCHES KOLKATA '2 &/ TRUE COPY ()=/ BY ORDER / /ASSTT. REGISTRAR .