What did the Tribunal hold?

The Tribunal, considering previous ITAT rulings on similar issues, restricted the disallowance on 'site and miscellaneous expenses' to 6%. This provided the assessee with a relief of Rs. 4,04,600/-.

The assessee's appeal pertained to the assessment year 2015-16, challenging an order that arose from an assessment under Section 143(3). The core issue was a disallowance made by the Assessing Officer on 'site and miscellaneous expenses'.

What were the issues?

The primary issue was the quantum of disallowance to be made on 'site and miscellaneous expenses' and whether the disallowance made by the lower authorities was justified.

M/S G.S Malhotra, Ramgarh vs ACIT | s.143(3) | ITAT Ranchi 2019

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: Shri S. S. Godara, J.M. & Dr.A.L.Saini, A.M.)

For Appellant: Shri Devesh Poddar, Advocate, ld.AR, Shri Inderjeet Singh, CIT/ld.DR

For Respondent: Shri Inderjeet Singh, CIT/ld.DR

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI (Before Shri S. S. Godara, J.M. & Dr.A.L.Saini, A.M.)

ITA No. 233/Ran/18 : Asstt. Year : 2015-16

M/s. G.S Malhotra Vs ACIT, Cir-2(1), H ‘bagh PAN: AAHFG7837Q (APPELLANT) (RESPONDENT)

Appellant/assessee by : Shri Devesh Poddar, Advocate, ld.AR Respondent/department by : Shri Inderjeet Singh, CIT/ld.DR

Date of Hearing : 11-01-2019 Date of Pronouncement: 22 -02-2019 ORDER PER BENCH: The captioned appeal filed by the assessee, pertaining to assessment year 2015-16, is directed against the order passed by the Commissioner of Income-tax (Appeals), Hazaribagh, dated 10-05-2018, which in turn arises out of an order passed by the Assessing Officer u/s. 143(3) of the Income-Tax Act, 1961 (in short, the Act),dated 29-11-2017.

We have heard both the parties and perused the record. We find that the ld. CIT(A) in this case had made disallowance @ 5% under the head ‘site and miscellaneous expenses’ as against 10% made by the AO. The ld. CIT(A) restricted Page1 the same at 5%. Similar disallowance was made by the ITAT, Ranchi in various cases at 6% on identical issue. Keeping in view of the same and various judicial 1 ITA No. 233/Ram18 A.Y 2015-16 M/s. G.S Malhotra

pronouncements on similar issue held by the ITAT, we restrict the same at 6% ( Rs. 67,43,378 x 6%, Rs. 4,04,600/-) as against 5% by the ld.CIT(A). Thus, the assessee gets relief of Rs.4,04,600/-. Grounds raised by the assesse are partly allowed.

In the result, the appeal filed by the assessee is partly allowed.

Order Pronounced in the Open Court on 22 -02-2019

Sd/- Sd/- (S. S. Godara) (Dr. A.L.Saini) Judicial Member Accountant Member Dated: 22-02-2019 *PRADIP (Sr.PS) Copy of the order forwarded to: 1. The Appellant/Assessee: M/s G.S Malhotra, Goriary Bijulia, Ramgarh-829112. 2 The Respondent/Department : ACIT, Circle-2(1), Aaykar Bhawan, Hazaribag-825301. 3. The CIT-, 4. The CIT(A)-, 5. DR, Ranchi Benches, Ranchi True Copy, By order, Assistant Registrar /Senior P.S ITAT, Ranchi Benches

Page2 2 ITA No. 233/Ram18 A.Y 2015-16 M/s. G.S Malhotra

M/S G.S MALHOTRA,RAMGARH vs. ACIT,CIRCLE-2(1), HAZARIBAGH

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