M/S. GIIRAJ SPINTEX PVT. LTD., ,BHILWARA vs. ITO, WARD-1, BHILWARA
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Income Tax Appellate Tribunal, JODHPUR BENCH ‘SMC’, JODHPUR
Before: SHRI SAKTIJIT DEY, VICE- & SHRI GIRISH AGRAWAL
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH ‘SMC’, JODHPUR BEFORE SHRI SAKTIJIT DEY, VICE-PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER
ITA No. 211/Jodh/2019 Assessment Year: 2015-16 (Through Virtual Mode) M/s. Giriraj Spintex Pvt. Ltd. Versus Income-tax Officer, B-18, Gokul, Basant Vihar, Ward-1, Bhilwara. Bhilwara. PAN: AABGG3426G (Appellant) (Respondent) Assessee by : Sh. Priyansh Arora, Adv. Revenue by : Sh. Rajeev Mohan, JCIT-DR
Date of hearing : 14.09.2023 Date of pronouncement: 20.09.2023
ORDER This is an appeal by the assessee against order dated
01.08.2018 of learned Commissioner of Income-tax (Appeals), Ajmer for the assessment year 2015-16.
There is delay of 236 days in filing the present appeal. After considering the submissions of the parties and perusing materials on
record, we are of the view that the delay in filing the appeal was due
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to reasonable cause. Accordingly we condone the delay and admit
the appeal for adjudication on merits.
When the appeal was called out, at the very outset, learned
counsel appearing for the assessee, on instructions, submitted that
ground No. 1 & 2 have been wrongly taken, as the assessee has
already been granted the desired relief by the first appellate authority.
Thus, he did not press these two grounds. In view of the aforesaid
submission of learned counsel for the assessee, ground Nos. 1 & 2
are dismissed as not pressed.
Even, in so far as ground No. 3 is concerned, learned counsel
submitted that the figure of disallowance mentioned at Rs.1,00,000/-
is by mistake. Actual disallowance, which remains after first appellate
order is Rs.50,000/-. Be that as it may, the only surviving ground is
ground No. 3. Hence, we proceed to decide this ground.
Briefly, the facts relating to the issue are, the assessee is a
resident corporate entity stated to be engaged in the manufacturing
and sale of synthetic fabrics. In the assessment year under dispute,
the assessee had filed its return of income on 22.09.2015 declaring
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income of Rs.5,51,890/-. In course of assessment proceedings, the
Assessing Officer called for various information and details. After
examining them, he observed, in respect of expenses claimed the
assessee was unable to furnish complete set of bills and vouchers.
Accordingly, on purely estimate basis he disallowed an amount of
Rs.1,00,000/- out of expenses claimed. The assessee contested the
aforesaid disallowance before learned first appellate authority. After
considering the submissions of the assessee, learned first appellate
authority restricted the disallowance to Rs.50,000/-.
We have considered rival submissions and perused materials
on record. A reading of the assessment order reveals that the
Assessing Officer has not identified the specific expenses, in
connection with which, the assessee could not furnish the required
bills/vouchers. In fact, the assessment order on this aspect is cryptic
and bereft of any discussion. The Assessing Officer has not specified
what is the nature of expenditure he proposed to disallow. Thus, the
disallowance is purely of adhoc nature without any reasonable basis.
Even, learned first appellate authority has reduced the disallowance
to Rs.50,000/- without assigning any reason why the disallowance
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has to be made. Since the disallowance made and sustained by the
departmental authorities is without proper reasoning, we are inclined
to delete the disallowance of Rs.50,000/- sustained by learned first
appellate authority. However, it is made clear, this decision of ours is
purely based on the facts involved in the present appeal, hence,
cannot be taken as a precedent.
In the result, appeal is allowed as indicated above.
Order pronounced in the open court on 20/09/2023. Sd/- Sd/- (GIRISH AGRAWAL) (SAKTIJIT DEY) ACCOUNTANT MEMBER VICE-PRESIDENT
Dated: 20.09.2023 *aks/-
