M/s. S.R. PROTIENS PVT. LTD, Jaipur v. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4, Jaipur

ITA 761/JPR/2017 | 2013-2014
Pronouncement Date: 13-11-2017 | Result: Partly Allowed

Appeal Details

RSA Number 76123114 RSA 2017
Assessee PAN AAICS0896F
Bench Jaipur
Appeal Number ITA 761/JPR/2017
Duration Of Justice 1 month(s) 3 day(s)
Appellant M/s. S.R. PROTIENS PVT. LTD, Jaipur
Respondent DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 13-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 13-11-2017
Last Hearing Date 10-11-2017
First Hearing Date 10-11-2017
Assessment Year 2013-2014
Appeal Filed On 10-10-2017
Judgment Text
ITA NO.761/JP/2017 M/S. S.R. PROTEINS PVT. LTD VS ACIT CIRCLE 4 JAIPUR 1 VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES (SMC) JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 761/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 M/S. S.R. PROTEINS PVT. LTD D-97 SHANTI SADAN AMBABARI JAIPUR CUKE VS. THE ACIT CIRCLE - 4 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAICS 0896 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI SHRAWAN KUMAR GUPTA ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY :SMT. POONAM RAI DCIT- DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 10/11/2017 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 13 /11/2017 VKNS'K@ ORDER PER BHAGCHAND AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-2 JAIPUR DATED 20-08-2017 FOR THE ASSESSMENT YEAR 201 3-13 RAISING THEREIN FOLLOWING GROUNDS:- 1. THAT THE IMPUGNED ASSESSMENT ORDER U/S 143(3) DATED 31- 12-2015 IS BAD IN LAW AND ON FACTS OF THE CASE FOR WANT OF JURISDICTION AND FOR VARIOUS OTHER REASONS AND HENCE THE SAME MA Y KINDLY BE QUASHED. 2. THE LD. CIT(A) HAS GROSSLY ERRED IN LAW AS WELL AS ON THE FACTS OF THE CASE IN PARTLY SUSTAINING THE DISALLOW ANCE OF EXPENSE OF 2 00 000/- OUT OF RS. 4 00 000/- DISALLOWED BY THE AO ON ACCOUNT OF ITA NO.761/JP/2017 M/S. S.R. PROTEINS PVT. LTD VS ACIT CIRCLE 4 JAIPUR 2 VARIOUS EXPENSES WITHOUT INVOKING THE PROVISIONS OF SEC 145(3) WHICH WAS BASED MERELY ON ASSUMPTION PRESUMPTION AND SUS PICION. THE DISALLOWANCE SO MADE BY THE AO AND PARTLY CONFIRMED BY THE LD. CIT(A) IS BEING ABSOLUTELY CONTRARY TO THE PROVISI ONS OF LAW AND FACTS OF THE CASE AND NOT IN CONFORMITY WITH THE LAW HEN CE THE SAME MAY KINDLY BE DELETED IN FULL. 3. THE AO ERRED IN LAW AS WELL AS ON THE FACTS OF T HE CASE IN CHARGING OF INTEREST U/S D234B 234C & 234D AS CONS EQUENTIAL IN NATURE. THE APPELLANT TOTALLY DENIES ITS LIABILITY OF CHARGING OF ANY SUCH INTEREST. HENCE THE INTEREST SO CHARGED BEING CONTRARY TO THE PROVISIONS OF LAW AND FACTS MAY KINDLY BE DELETED IN FULL. 2. APROPOS GROUND NO. 1 AND 2 OF THE ASSESSEE THE FACTS AS EMERGES FROM THE ORDER OF THE LD. CIT(A) IS AS UNDER:- 2.3 I HAVE PERUSED THE FACTS OF THE CASE ASSESSM ENT ORDER AND THE SUBMISSIONS OF THE APPELLANT. THE FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE BUSINESS OF MANU FACTURING OF MUSTARD OIL AND CAKE. ON VERIFICATION OF THE BOOKS OF ACCOUNT THE AO NOTED THAT THE PAYMENTS AGAINST THE BOILER RUNNING EXPENSES MUSTARD CAKE EXPENSES MUSTARD OIL EXPENSES AND MUSTARD SEE D CRUSHING EXPENSES WERE COMPLETELY MADE IN CASH OF AMOUNTS L ESS THAN RS. 19 000/- IN EACH TRANSACTION. THEY WERE SUPPORTED O NLY BY SELF MADE VOUCHERS AND THE BILLS AND VOUCHERS FOR LOADING AND UNLOADING CHARGES WERE ALSO NOT PRODUCED. THE AO MADE A LUMP SUM DISA LLOWANCE OF RS. 4 LAKHS. IN THE PRESENT PROCEEDINGS THE AUTHOR IZED REPRESENTATIVE STATED THAT WHILE THE SALE DURING THE YEAR HAVE INC REASED BY ALMOST RS. 14 LAKHS THE EXPENDITURE HAS INCREASED MARGINALLY BY RS. 3 LAKHS. IT WAS THUS SUBMITTED THAT THE ADDITION MADE NOT JUSTI FIED. IT IS SEEN THAT EVEN DURING THE APPEAL PROCEEDINGS THE AUTHORIZED R EPRESENTATIVE HAS NOT COUNTERED THE DEFECTS POINTED OUT BY THE AO IN THE EXPENDITURE MADE. IN VIEW OF THE SAME THE DISALLOWANCE IS REST RICTED TO RS. 2 LACS CONSIDERING THAT THERE HAS BEEN AN INCREASE IN THE TURNOVER. THE GROUND OF APPEAL IS PARTLY ALLOWED. ITA NO.761/JP/2017 M/S. S.R. PROTEINS PVT. LTD VS ACIT CIRCLE 4 JAIPUR 3 2.2 DURING THE COURSE OF HEARING THE LD.AR OF THE ASSESSEE PRAYED FOR DELETION OF ADDITION CONFIRMED BY THE LD. CIT(A). 2.3 ON THE OTHER HAND THE LD. DR RELIED ON THE ORD ER OF THE LD. CIT(A). 2.4 THE BENCH HAS THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NOTED THAT THE AO MADE THE LUMPSUM DI SALLOWANCE OF RS. 4.00 LACS AS THE EXPENSES WERE NOT VERIFIABLE FOR WANT OF PROPER BILLS AND VOUCHERS. IN FIRST APPEAL THE LD. CIT(A) HAS REDUCED THE SAME TO TH E EXTENT OF RS. 2.00 LACS. DURING THE COURSE OF HEARING THE LD.AR OF THE ASSESSEE FI LED THE FOLLOWING STATEMENT SHOWING COMPARATIVE EXPENSE. NATURE OF EXPENSES A.Y. 2013-14 A.Y. 2012-14 BOILER RUNNING EXPENSES (EXCLUDING COAL & FUEL EXPENES) 11 62 680 10 49 497 MUSTARD CAKE EXPENSES 11 67 459 10 62 573 MUSTARD OIL EXPENSES 11 70 530 10 57 045 MUSTARD SEED EXPENSES 11 62 680 11 75 240 TOTAL 46 63 349 43 44 355 MARGINAL INCREASE 3 18 994 AMOUNT OF TOTAL SALES 84 97 18 792 70 12 90 610 THUS INCREASE IN THE AMOUNT OF SALES BY RS. 14 84 28 1822 TAKING INTO CONSIDERATION THE FACTS CIRCUMSTANCES OF THE CASE AND THE ORDERS OF THE LOWER AUTHORITIES IT WILL BE IN THE INTEREST OF EQ UITY AND JUSTICE TO SUSTAIN THE ADDITION TO THE EXTENT OF RS. 1.00 LACS AS AGAINST RS. 2.00 LACS CONFIRMED BY THE LD. CIT(A). THUS GROUND NO. 1 AND 2 OF THE ASSESSEE IS PARTLY ALLOWED. ITA NO.761/JP/2017 M/S. S.R. PROTEINS PVT. LTD VS ACIT CIRCLE 4 JAIPUR 4 3.1 THE GROUND NO. 2 OF THE ASSESSEE IS REGARDING C HARGING OF INTEREST U/S 234B 234C AND 234D OF THE ACT WHICH ARE MANDATORY AND CO NSEQUENTIAL IN NATURE. 4.0 IN THE RESULT THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 /11/2 017 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 13 /11/ 2017 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. S.R. PROTEINS PVT LTD. JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- THE ACIT CIRCLE 3 JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR ITAT JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 761/JP/2017 ) VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ @ ASSISTANT. REGISTRAR