JAS KAR TECHNO PVT LTD,RANCHI vs. ITO WARD-1(4), RANCHI

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI

BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.60/Ran/2017 Assessment Year: 2012-2013

Jas kar Techno Pvt Ltd., 29- Vs. ITO, -1(4), Ranchi 30, 2nd floor, A.C.Market, Church Complex, Main Road, Ranchi. PAN/GIR No. AACCJ 3487 D (Appellant) .. ( Respondent)

Assessee by: Shri R.K Kaushal, CA Revenue by : Shri P.K.Mondal, JCIT

Date of Hearing : 22/05/ 2018 Date of Pronouncement : 23 /05/ 2018

O R D E R Per N.S.Saini, AM This is an appeal filed by the assessee against the order of CIT(A)-

Ranchi, dated 16.11.2016, for the assessment year 2012-13.

“1. Whether the AO was justified in disallowing a sum of Rs.1329344/- on adhoc basis @ 3% of other expenses on wrong appreciation of the facts that the assessee denied to produce the bills and vouchers. 2. Whether the AOP was justified in ignoring the plea of the assessee to produce specific bills and vouchers.” 3. The brief facts of the case are that the Assessing Officer found that the

assessee has debited Rs.4,33,11,459/- under the head “other expenses”.

2 ITA No.60/ R an/2 017 Asse ssmen t Year: 2 012 -20 13 The assessee showed all bills and vouchers maintained in tally but before

the Assessing Officer, the assessee also took plea that the branches of the

assessee were in different places. Hence, it was difficult to produce bills &

vouchers physically. From this, the Assessing Officer inferred that in

absence of physical verification of vouchers, possibility of excess claim of

expenses could not be denied and, therefore, disallowed 3% out of the total

expenses and added Rs.13,29,344/- to the income of the assessee.

Officer for the reason that the assessee failed to produce evidence before

the Assessing Officer.

vouchers are numerous and voluminous. The Assessing Officer had not

specified which vouchers he wanted to verify and that if he could have

required so, the assessee could have produced the same before him for

verification. He argued that in the interest of justice, one more opportunity

should be granted to the assessee to appear before the Assessing officer and

produce the vouchers, which he wants to verify.

of the assessee.

available on record, we find that the disallowance of 3% of the expenses

3 ITA No.60/ R an/2 017 Asse ssmen t Year: 2 012 -20 13 claimed under the head “other expenses” was made leading to addition of

Rs.13,29,344/- in the hands of the assessee on the ground that the

assessee failed to produce the vouchers for expenses before the Assessing

Officer. Ld A.R. of the assessee has contended that the vouchers for the

expenses are numerous and voluminous and an opportunity should be

granted to the assessee to produce the vouchers before the Assessing

Officer, which the Assessing Officer wants to verify. Ld D.R. has no

objection and, therefore, in the given facts and circumstances of the case,

we set aside the orders of lower authorities and remand the matter back to

the file of the Assessing Officer for fresh adjudication of the issue. The

Assessee is directed to furnish the bills and vouchers as and when required

by the Assessing Officer for verification. With these directions, the appeal is

restored to the file of the Assessing Officer.

8 In the result, appeal filed by the assessee is allowed for statistical

purposes.

Order pronounced in the open court on 23 /05/2018

Sd/- sd/- (PAVAN KUMAR GADALE) (N.S Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Ranchi; Dated 23 /05 /2018 B.K.Parida, SPS

4 ITA No.60/ R an/2 017 Asse ssmen t Year: 2 012 -20 13 Copy of the Order forwarded to : 1. The Appellant : Jas kar Techno Pvt Ltd., 29-30, 2nd floor, A.C.Market, Church Complex, Main Road, Ranchi. 2. The respondent: ITO, -1(4), Ranchi 3. The CIT(A), Ranchi 4. Pr. CIT, Ranchi 5. DR, ITAT, Ranchi 6. Guard file. BY ORDER, //True Copy//

SR.PS, ITAT, CAMP AT RANCHI