M/S. ASHOK TRANSPORT COMPANY,JODHPUR vs. ITO, WARD-1(1), JODHPUR

आदेश / O R D E R

Manoj Kumar Aggarwal (Accountant Member): -

ITA No.401/Jodh/2019 M/s Ashok Transport Company Assessment Year: 2015-16 2015-16 vide order dated 06/11/2019. The effective grounds taken by the assessee read as under:- 1. That on the facts and in the circumstances of the case, the order by Ld. Pr. CIT, Jodhpur is bad in law and bad in facts. 2. That on the facts and in the circumstances of the case, the notice issued u/s. 263 by Pr. CIT, Jodhpur without making any independent enquiry to find out whether the order passed by the Ld. AO and his satisfaction with respect to the correctness of the claim of the assessee is found to be erroneous as well as prejudiced. 3. That on the facts and in the circumstances of the case, the Id Pr. CIT, Jodhpur erred in holding that the order passed by the Id AO is erroneous as well as prejudiced to the interest of revenue particularly, when the Ld. AO passed the order after making proper enquiry as per provision of law. 4. That on the facts and in the circumstances of the case, the Id Pr.CIT, Jodhpur erred in invoking provision of section 263 of the Act on the basis of surmises and conjectures without disclosing any error in the assessment order passed by the Ld.AO. 5. That on the facts and in the circumstances of the case, the Id Pr.CIT, Jodhpur has also erred in recording various observation in the order which are contrary to the material available on record and laid down by the various Hon’ble Courts.

3 ITA No.401/Jodh/2019 M/s Ashok Transport Company Assessment Year: 2015-16 3.2 The said jurisdiction would stem from the observation that outstanding freight creditors reflected by the assessee included one creditor namely Sh. Ugara Ram S/o Sh. Ganga Ram. Although the outstanding amount against this creditor was Rs.4,44,650/-, however, the creditor confirmed balance only for Rs.84,650/-. This discrepancy was not verified by Ld. AO and the expenditure was over-stated by the assessee to that extent and therefore, the order was erroneous as well as prejudicial to the interest of the revenue. 3.3 In response to show-cause notice, the assessee submitted that truck-wise confirmation of the said creditor was filed since the assessee dealt with cement companies where many different trucks were used for transportation. The information was recorded trip- wise and truck-wise as per quantity and distance between the station and place of supply and for accounting purpose clubbed together where-ever needed. In support, fresh confirmation of Sh. Ugara Ram was filed which was in respect of 4 different trucks. The amount aggregated to Rs.4,44,650/-. The creditor confirmed that the earlier information was sought in respect of Truck No. RJ04GB1481 for an amount of Rs.84,650/-. However, he was maintaining vehicle-wise record for due amount and the amount of Rs.4,44,650/- was in respect of all the vehicles owned by him. 3.4 However, Ld. Pr. CIT rejected the submissions in view of the fact that the assessee did not submit documentary evidences about ownership of Sh. Ugara Ram of the remaining three trucks and the amount due thereon and the fact of ownership remained unverifiable. The letter issued by Ld. AO to Sh. Ugara Ram at the

4 ITA No.401/Jodh/2019 M/s Ashok Transport Company Assessment Year: 2015-16 time of assessment proceedings did not mention of any amount or particular truck. Therefore, the assessee failed to establish that the outstanding amount represented genuine business expenditure. 3.5 During revisional proceedings, the assessee had filed another confirmation from Sh. Jora Ram for Rs.1,02,725/- which was not filed as well as examined during 143(3) proceedings and therefore, the same would also make the order erroneous and prejudicial to the interest of the revenue. 3.6 Finally, invoking the provisions of clause (a) to Explanation-2 to Sec.263 (1), the order was set aside on the stated issue and Ld. AO was directed to examine the issue after providing an opportunity of the hearing to the assessee. 3.7 Aggrieved, the assessee is in further appeal before us assailing invocation of revisional jurisdiction u/s 263. 4. Upon careful consideration, it is quite evident from the observation of Ld. Pr. CIT that the confirmation of sundry creditors was called for by Ld. AO during the assessment proceedings. The truck wise detail of freight payable at year-end was furnished by the assessee vide Annexure-A during the course of assessment proceedings. Upon perusal of the same, we find that these details are truck-wise details and the name of Sh. Ugara Ram appears against 4 trucks which fortify the submissions that the assessee maintained truck wise details and the aggregate amount due towards that party was Rs.4,44,650/-. In fact that creditor filed an affidavit confirming the truck-wise total amount due against the assessee. Therefore, the concern raised by Ld. Pr. CIT, in our

5 ITA No.401/Jodh/2019 M/s Ashok Transport Company Assessment Year: 2015-16 considered opinion, is without any substance. The order could not be said to be erroneous or prejudicial to the interest of revenue on this fact. 5. So far as the confirmation of Sh. Jora Ram is concerned, we find that the addition of Rs.1,02,725/- with respect to this party has already been made by Ld.AO in the assessment order dated 28/10/2017 and therefore, non-consideration of the same could not be said to be prejudicial to the interest of revenue, in any manner. 6. Finally, on the facts are circumstances of the case, we do not concur with the stand of Ld. Pr.CIT in invoking jurisdiction u/s 263. By quashing revisional order dated 06/11/2019, we allow the appeal. 7. In nutshell, the appeal stands allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

SSd/- Sd/- (Sandeep Gosain) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member

मुंबई Mumbai; िदनांकDated : 21/12/2020 Sr.PS:-Jaisy Varghese आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent 2. आयकरआयु�(अपील) / The CIT(A) 3. आयकरआयु�/ CIT– concerned 4. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, मुंबई/ DR, ITAT, Jodhpur 5. गाड�फाईल / Guard File 6.

ITA No.401/Jodh/2019 M/s Ashok Transport Company Assessment Year: 2015-16 आदेशानुसार/ BY ORDER,

उप/सहायकपंजीकार (Dy./Asstt.Registrar) आयकरअपीलीयअिधकरण, जोधपुर / ITAT, Jodhpur.