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Income Tax Appellate Tribunal, GUWAHATI BENCH, GUWAHATI
Before: Shri S.S.Godara & Dr. A.L. Saini
आदेश /O R D E R PER BENCH:- This assessee’s appeal for assessment year 2009-10 arises against the Commissioner of Income Tax (Appeals)-Guwahati’s order dated 06.09.2013 passed in case No.Dim-7/2011-12, involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
Assessee’s first substantive ground seeks to reverse both the lower authorities action treating his unsecured loan of Rs.6,80,000/- as undisclosed income. There is no dispute that this addition amount of Rs.6.80 lac comprises
ITA No.02/Gau/2014 A.Y.2009-10 Sh Ajit Kr. Baruah Vs. ACIT, Dimapur Page 2 involves two parties namely, M/s Eastern trading Company and Mr. Bisheshwar Bora with sums of Rs.5.80 lac and Rs.1 lac; respectively. Learned counsel is fair enough in not disputing the latter component of ₹1 lakh. The same stands confirmed. Coming to the former creditor namely M/s Eastern trading Company, we find that this sum form part of the corresponding ledger account from 01.05.20007 to 31.05.2007 than that pertaking relevant previous year. We accordingly conclude alone since the impugned sum has not been credited in the relevant previous year the learned authorities have erred in adding the same. The assessee’s first substantive ground is partly allowed in foregoing terms.
The assessee’s second substantive ground seeks to delete 8% of the other expense disallowance coming to Rs.1,31,150/- and salary expense declined of Rs.1,55,365/- out of total salary of Rs.17,86,606/-. We notice that both the lower authorities have disallowed these two claim(s) on ad hoc basis without comparing corresponding details in preceding or succeeding assessment years. The fact also remains that the assessee has not been able to prove the two head(s) of expenditure by filing all the necessary cogent evidence. We therefore conclude in these peculiar facts and circumstances that a lump sum disallowance of 5% of the former component and Rs.50,000/- in the latter component would meet the ends of justice with a rider that the same shall not be treated as a precedent in any other assessment year. This substantive ground is partly accepted in above terms.
Lastly comes the third substantive grievance challenging addition of Rs.1,33,975/- in case of M/s Chorus Machineries. We find that this assessee has been having running account with the party in issue right from 01.04.2008 indicating opening balance of Rs.2,28,329/- followed by similar entries in the relevant previous year. The assessee has also placed on record similar ledger account from 01.04.2017 to 31.03.2018. We make it clear that we are dealing
ITA No.02/Gau/2014 A.Y.2009-10 Sh Ajit Kr. Baruah Vs. ACIT, Dimapur Page 3 with assessment year 2009-10. All these facts sufficiently indicate that the assessee has been constantly maintained its ledger account with M/s Chorus Machineries wherein the sum in issue has been duly accounted without involving any lack of reconciliation. We therefore direct the Assessing Officer to delete the impugned addition as well.
This assessee’s appeal is partly allowed in above terms. Order pronounced in the open court 13/09/2019 Sd/- Sd/- (लेखा सद#य) (%या&यक सद#य) ( A.L.Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Guwahati, *Dkp 'दनांकः- 13/09/2019 गूवाहाठ� । आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. अपीलाथ�/Appellant-Shri Ajit Kr. Baruah, C/o BB.S. Publication, Hemkosh Press, Sivasagar, HC Road, Sivsagar-785640 2. ��यथ�/Respondent-ACIT, Circle-Dimapur 3. संबं2धत आयकर आयु3त गृवाहाठ8 / Concerned CIT Guwahati 4. आयकर आयु3त- अपील / CIT (A) Guwahati 5. ;वभागीय �&त&न2ध, आयकर अपील�य अ2धकरण, गूवाहाठ8 खंङपीठ / DR, ITAT, Guwahati 6. गाडA फाइल / Guard file. By order/आदेश से, /True Copy/ Sr. Private Secretary (on tour) आयकर अपील�य अ2धकरण, गूवाहाठ� ।