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Income Tax Appellate Tribunal, “RANCHI BENCH, RANCHI
Before: Shri Sanjay Garg & Shri Rajesh Kumar
IN THE INCOME TAX APPELLATE TRIBUNAL “RANCHI BENCH, RANCHI VIRTUAL HEARING AT KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Rajesh Kumar, Accountant Member Assessment Year: 2015-16 Vindhyeshwari Infra Projects Pvt. Ltd……...…......................……...…..….. Appellant B-4, Tirupati Balaji Complex, Main Road, Ramgarh, Jharkhand-829122. [PAN: AAECV1174F] vs. DCIT, Circle-1, Hazaribagh….……………………….……….…………….. Respondent Appearances by: Shri A. K. Rastogi, Sr. Adv., appeared on behalf of the appellant. Shri Pranob Kumar Koley, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : March 01, 2023 Date of pronouncing the order : April 28, 2023 ORDER
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 10.05.2018 of the Commissioner of Income Tax (Appeals), Hazaribagh, Jharkhand [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).
The assessee in this appeal has taken the following grounds of appeal:
1. That the Hon'ble CIT (Appeals) is not justified in confirming disallowance of 10% of fuel and lubricant expenditure on estimate basis and without pointing out any specific defect.
2. That the Hon'ble CIT(Appeals) is not justified in confirming disallowance of Rs. 5,23,065/- out of total expenses claimed for machinery running and maintenance expense on estimate basis. 1
Assessment Year: 2015-16 Vindhyeshwari Infra Projects Pvt. Ltd
The appellant craves leave to add, amend, alter, vary and/or withdraw any or all the above grounds of appeal
.”
3. A perusal of the above ground of appeal reveals that the assessee in this appeal has agitated the confirmation of addition of Rs.19.73,372/- made by the Assessing Officer on account of disallowance of certain expenses i.e. Rs.1,45,03,078/- out of fuel and lubricant and Rs.5,23,065/- out of machinery running and maintenance expenses.
The brief facts of the case are that the assessee has been engaged in the business of civil construction contract. The assessee e- filed his return of income showing total income of Rs.21,95,950/-. The case of the assessee was selected for scrutiny with the reason “large other expenses claimed in the profit and loss a/c”. During the assessment proceedings, the Assessing Officer noted that the assessee had shown a turnover from the aforesaid civil construction contract business of Rs.3,51,83,169/-. However, the assessee had claimed expenditure of Rs.3,20,39,581/- as ‘other expenses’. On being asked, the assessee furnished the details of the expenditure claimed. On perusal of the said details, the Assessing Officer noted that the assessee had claimed machinery running and maintenance charges at Rs.52,30,659/-. The Assessing Officer further noted that the expenditure incurred mostly were in cash. Further, the assessee had shown diesel purchases for Rs.63,34,244/-. However, the assessee had not submitted ledger copy of fuel and lubricant claimed to the tune of Rs.1,45,03,078/-. The assessee was asked to produce bills vouchers or any other evidence in support of the genuineness of the claim of the assessee. The assessee only produced some self made vouchers which the Assessing Officer observed that those cannot be 2
Assessment Year: 2015-16 Vindhyeshwari Infra Projects Pvt. Ltd wholly relied upon. Since, the assessee had failed to produce reliable evidence in support of its claim in respect of fuel and lubricant expenses of Rs.1,45,03,078/- and machinery running and maintenance expenses of Rs.52,30,659/-, the Assessing Officer made ad hoc disallowance @10% of the expenditure claimed under the aforesaid two heads.
The ld. CIT(A) confirmed the addition so made by the Assessing Officer.
We have heard the rival contentions and gone through the record. We find that the assessee is in the business of civil construction. The assessee had shown a total turnover of Rs.3,51,83,169/-. However, the assessee had shown business income of Rs.26,32,144/- only. The assessee had shown fuel and lubricant expenses of Rs.1,45,03,078/- but the assessee had failed to produce third party bills and vouchers in respect of the same. The fuel and lubricant is generally purchased from third parties and in our view, the assessee could have produced bills and vouchers relating to the same. Further the assessee has claimed huge expenses in respect of machinery running and maintenance charges but failed to justify the said expenditure. Considering the business of the assessee of civil construction and considering the turnover of the assessee of Rs.3,51,83,169/- but the business income shown by the assessee was Rs.26,32,144/- only and huge expenses have been claimed under the head fuel & lubricant and machinery running & maintenance expenses and in the absence of any evidence to substantiate the claim of the assessee, we find justification on the part of the Assessing Officer in making the impugned disallowance. We, therefore, do not Assessment Year: 2015-16 Vindhyeshwari Infra Projects Pvt. Ltd find any merit in the appeal of the assessee and the same is accordingly dismissed.
In the result, the appeal of the assessee stands dismissed.
Kolkata, the 28th April, 2023.