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Income Tax Appellate Tribunal, RANCHI BENCH “SMC”, RANCHI
Before: SH. S.S.GODARA
IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH “SMC”, RANCHI
BEFORE SH. S.S.GODARA, JUDICIAL MEMBER
ITA No.260/RAN/2018 [Assessment Year: 2014-15] vs Santhal Pargana Skilled ITO, Development for Rural Mass, (Exemption) Ward, Chapu Toli, Argora, Ranchi. Ranchi-834002. PAN-AALTS9838D (Appellant) (Respondent) Appellant by Sh. Devesh Poddar, Adv. Respondent by Sh. P.K.Mondal, JCIT Date of Hearing 07.01.2019 Date of Pronouncement 09.01.2019
ORDER PER SH. S.S.GODARA, JUDICIAL MEMBER This assessee’s appeal for AY 2014-15 arises against the order dated 31.05.2016 passed by the CIT(A), Ranchi in Appeal No.CIT(A), Ranchi/10325/2016-17 in proceedings u/s 144 of the Income tax Act, 1961 (in short “Act”). Heard both the parties. Case file perused. 2. I find at the outset that the assessee sole grievance challenges the correctness of both the lower authorities action disallowing 20% of expenses on teaching staff, withdrawals on 26.03.2014, disallowance of accounting charges and medicine purchases of Rs.2,57,310/-, 1,00,000/-, 1,19,736/- and 7,648/- respectively totalling to Rs.3,77,046/-. Learned Counsel’s only argument is that this assessee is a trust and therefore, it follows full proof evidence of expenses leaving no scope of any adhoc disallowance. He fails to dispute the fact that the assessee has not proved each and every head of expenditure by filing all necessary details. The facts also remains that the lower authorities have allowed similar expenses in preceding and succeeding assessment years. Be that or it may, I hold in all these peculiarities involved to conclude that a lumpsum disallowance of
ITA No.260/RAN/2018 [Assessment Year: 2014-15] Rs.1,00,000/- out of Rs.3,77,046/- would meet ends of justice. It is made clear
that the impugned estimation would not be treated as a precedent against the assessee in any preceding assessment year.
Next argument raised at the assessee’s behest relates to re-computation of
section 234B interest. Hon’ble jurisdictional high court’s decision in Ajay Prasad Verma in T.A.No.38/2010 reported in 2013 (1) TMI 140 holds that the impugned
interest can be levied on returned and not on assessed income. I therefore direct
the Assessing Officer to re-compute the impugned interest strictly in conformity to the above decision of Hon’ble jurisdictional high court.
This assessee’s appeal is partly allowed in above terms.
Order pronounced in the open court on 09.01.2019.
Sd/- (S.S.GODARA) JUDICIAL MEMBER
Date:- 09.01.2019 *Amit Kumar*