NAND LAL, BUNDI v. ACIT, Jaipur

ITA 490/JPR/2013 | 2008-2009
Pronouncement Date: 10-07-2013 | Result: Allowed

Appeal Details

RSA Number 49023114 RSA 2013
Assessee PAN AAHPL3478L
Bench Jaipur
Appeal Number ITA 490/JPR/2013
Duration Of Justice 2 month(s) 7 day(s)
Appellant NAND LAL, BUNDI
Respondent ACIT, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 10-07-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 10-07-2013
Date Of Final Hearing 10-07-2013
Next Hearing Date 10-07-2013
Assessment Year 2008-2009
Appeal Filed On 03-05-2013
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH SMC JAIPUR BEFORE SHRI B.R. JAIN ACCOUNTANT MEMBER ITA NO. 490/JP/2013 ASSESSMENT YEAR: 2008-09 PAN NO. AAHPL3478L NAND LAL VS. THE A.C.I.T. PROP. M/S R.S. & COMPANY CIRCLE-1 KOTA LAL BIHARI JI KA CHOWK BUNDI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M.K. JAIN RESPONDENT BY : MS. ANITA RITESH DATE OF HEARING : 10.07.2013 DATE OF PRONOUNCEMENT : 10.07.2013 ORAL ORDER PER B.R. JAIN A.M. THIS APPEAL BY ASSESSEE AGAINST THE ORDER DATED 13 TH FEBRUARY 2013 OF LD. CIT (APPEALS) AJMER RAISES THE SOLITARY GROUND AS UNDE R :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LEARNED ASSESSING OFFICER HAS WRONGLY DISALLOWED RS. 1 77 900/- OF TH E COMMISSION EXPENSES CLAIMED BY THE APPELLANT AND SUSTAINED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AJMER. 2. BRIEFLY THE FACTS ARE THAT THE ASSESSEE IS A KAC HHA ARTIA AND EARNED INCOME BY WAY OF COMMISSION ON FOOD-GRAIN ITEMS. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS ALSO PAID COMMISSION AMOUNTING TO RS. 1 77 900/- TO SIX PERSONS NAMELY MAHAVIR RANJEET RAJESH MATHURA LAL RAM SINGH AND RAM RAT AN. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO PRODUCE DETAILS OF TRANSAC TIONS FOR WHICH THE COMMISSION IS PAID TO THE AFORESAID PERSONS ALONGWITH THEIR POSTAL ADD RESSES PAN CONTACT NUMBERS ETC. IN 2 ABSENCE OF SUCH DETAILS VERIFICATION COULD NOT BE MADE. THE ASSESSING OFFICER THEREFORE DID NOT ACCEPT THE GENUINENESS OF THE CLAIM AND PRO CEEDED TO DISALLOW THE DEDUCTION OF RS. 1 77 900/- CLAIMED BY THE ASSESSEE. THE RETURNE D INCOME OF RS. 1 66 150/- STOOD ASSESSED AT RS. 3 73 039/-. 3. THE LD. CIT(A) DID NOT FIND ANY MERIT IN THE ASS ESSEES CLAIM THAT THE COMMISSION WAS PAID TO OBTAIN THE BUSINESS FROM FARMERS THROUG H THESE PERSONS TO WHOM THE COMMISSION CLAIMED TO HAVE BEEN PAID. AGREEING WITH THE FINDINGS REACHED BY THE ASSESSING OFFICER THE LD. CIT(A) CONFIRMED THE DIS ALLOWANCE. 4. SRI M.K. JAIN LEARNED COUNSEL FOR THE ASSESSEE CONTENDS THAT THE COMMISSION HAS BEEN PAID FOR PROCURING BUSINESS BY THE ASSESSEE FR OM A PARTICULAR COMMUNITY AS THE GOODS THAT WERE BROUGHT TO THE MANDI WERE ON ACCOUN T OF THE LIAISON DONE BY THE AFORESAID SIX PERSONS. THE SERVICES OF THESE PERSON S WERE UTILIZED IN THE EARLIER YEARS AS WELL AND COMMISSION FOR SUCH WORK WERE ALSO PAID TO THEM IN THOSE YEARS AND IS A MATTER OF RECORD OF THE ASSESSING OFFICER. THE AUTHORITIES BELOW HOWEVER HAVE NOT APPRECIATED THE BUSINESS NECESSITY AND THE FACTUM OF ACTUAL BUS INESS RETAINED BY THE ASSESSEE ON ACCOUNT OF THE WORK DONE BY THEM. IT WAS THEREFORE PRAYED TO DELETE THE DISALLOWANCE. 5. ON THE OTHER HAND LD. DEPARTMENTAL REPRESENTATI VE CONTENDS THAT THE ASSESSEE HAS NOT LAID ANY MATERIAL ON RECORD TO SUBSTANTIATE HIS CLAIM THAT THE SERVICES OF THE AFORESAID SIX PERSONS TO WHOM COMMISSION HAS BEEN PAID DURING THE YEAR UNDER CONSIDERATION WAS ALSO RENDERED SERVICES IN THE EARLIER YEARS AND THE Y WERE PAID COMMISSION WHICH STOOD ALLOWED IN THE ASSESSMENT OF THOSE YEARS. IN ABSENC E OF SUCH DETAILS THE DISALLOWANCE MADE CANNOT BE DELETED. 3 6. I HAVE HEARD PARTIES WITH REFERENCE TO MATERIAL ON RECORD. IN THE INTEREST OF SUBSTANTIAL JUSTICE I CONSIDER IT APPROPRIATE TO S ET ASIDE THE DISALLOWANCE AND REMIT THE MATTER BACK TO THE LD. ASSESSING OFFICER SO THAT TH E ASSESSEES CLAIM THAT HE HAS TAKEN SERVICES OF THE AFORESAID SIX PERSONS IN THE EARLIE R YEARS FOR HIS BUSINESS NECESSITY IS VERIFIED BY THE ASSESSING OFFICER AND DECISION TAKE N AFRESH AFTER AFFORDING REASONABLE AND EFFECTIVE OPPORTUNITY OF BEING HEARD TO THE ASSESSE E. 7. IN THE RESULT THE APPEAL STANDS ALLOWED FOR STA TISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT AFTER HEARING O F BOTH THE PARTIES ON 10/07/2013. SD/- (B.R. JAIN) ACCOUNTANT MEMBER JAIPUR DATED : 10.07.2013 * RANJAN COPY FORWARDED TO :- 1. SHRI NAND LAL BUNDI 2. THE ACIT CENTRAL CIRCLE-1 KOTA 3. THE CIT (A) 4. THE CIT 5. THE D/R GUARD FILE (ITA NO. 490/JP/2013) BY ORDER AR ITAT JAIPUR.