MR PREM CHAND SINGH,BOKARO vs. ACIT CIR-3, BOKARO

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ITA 9/RAN/2017Status: DisposedITAT Ranchi30 May 2018AY 2012-134 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the orders of the lower authorities and remanded the issue back to the Assessing Officer. The assessee was directed to furnish all supporting details and proofs to the Assessing Officer for a fresh decision.

What were the facts?

The Assessing Officer made additions to the assessee's income for various expenses, including labour, wages, C. Cess, bonus, JST/OST/WCT, and transportation charges, citing a failure to produce supporting details. The CIT(A) partly allowed the assessee's appeal.

What were the issues?

Whether the disallowances made by the Assessing Officer for various business expenses were justified due to alleged non-production of evidence. Whether the assessee should be given an opportunity to produce supporting documents before the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI N.S SAINI & PAVAN KUMAR GADALE

For Appellant: Shri Nitin Pasari, Adv
For Respondent: Shri P.K.Mondal, JCIT
Hearing: 28/05

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI

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

ITA No.09/Ran/2017 Assessment Year: 2012-2013

Mr Prem Chand Singh, Bari Vs. ACIT, Circle-3, Bokaro Co-operative Colony, Bokaro, Jharkhand PAN/GIR No. AIOPS 7509 J (Appellant) .. ( Respondent)

Assessee by: Shri Nitin Pasari, Adv Revenue by : Shri P.K.Mondal, JCIT

Date of Hearing : 28/05/ 2018 Date of Pronouncement : 30 /05/ 2018

O R D E R Per N.S.Saini, AM

This is an appeal filed by the assessee against the order of the CIT(A)-

Hazaribag dated 4.11.2016 for the assessment year 2012-13.

2.

The assessee has raised the following grounds of appeal:

“1. For that the disallowance of Rs. 5,00,000/- from labour and wages Account was uncalled for, when undisputedly, there is no allegation with regard to non production of evidence of said payment that too

2 ITA No.09/ R an/2 017 Asse ssmen t Year: 2 012 -20 13

when the entire voucher were produced but the Learned Assessing Officer held the same to be not verifiable. 2. For that the disallowance on account on account of C.Cess, when was duly reflected in the payment certificate issued in favour of the Appellant, the disallowance could not have been held to be reasonable when the said deduction was verifiable .All the more only because the some expenses had not been claimed in the earlier financial year cannot be the reason for disallowance / deduction of the expenses. 3. For that the addition of 50% of bonus paid to workers/ staff is unreasonable in as much as undisputedly the same was verifiable and was duly reflected in the books of accounts and in the absence of any doubt, 50% disallowance is bad in law. 4. For that disallowance of deduction towards JST/OST/WCT is unreasonable, since the Appellant being a works contractor the payment received are after the deduction and in any eventuality or any doubt , the same could have been easily be enquired into and/ or verified by the contractee i.e., South Eastern Railway Division. 5. For that the disallowance of Transportation Charges is absolutely unreasonable to the tune of 50% when undisputedly the payment have been made to identifiable persons and an independent enquiry could have easily unearthed the factum of payment, over and above being consistent in expenses against the past period, that at 133%. 6. For that otherwise also the order and judgement of the Hon'ble Jurisdictional Tribunal is binding on the Assessing Officer as well as the Learned Appellate Authority, that too. 7. For that once it is established that the expenditure is towards the business. expenses wholly and fully for the purpose of business the same is liable to be allowed when the expenses so incurred are not doubted or disputed and when there is no allegation of non production of evidences. 8. For that other and further grounds of appeal shall be canvassed at the time of hearing of this appeal.” 3. The brief facts of the case are that the Assessing Officer has completed

the assessment u/s.143(3) of the AC on 16.1.2015, inter alia, making the

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following additions on the ground that the assessee failed to produce any

details/proofs for substantiating the claim:

i) Transportation charges of Rs.3,64,198/-

ii) Depreciation of Rs. 53,096/-

iii) JST/OST/WCT of Rs.4,52,905/-

iv) Bonus of Rs.88,650/-

v) C.Cess of Rs.18,716/-

vi) Labour & wages of Rs.5,00,000/-.

4.

On appeal, the CIT(A) partly allowed the appeal of the assessee.

5.

Before us, ld A.R. submitted that the assessee has all the details/proof

in support of the claim. He prayed that if an opportunity is allowed to the

assessee, the assessee can produce all the details and proof before the

Assessing Officer. Ld D.R. did not have any objection to the submissions of

ld A.R. of the assessee.

6.

In view of the given facts and circumstances of the case and the

statement of ld Counsel for the assessee at Bar that the assessee is having

all the details and documents in support of the claim of deduction, in order

to render substantial justice to the assessee, we set aside the orders of

lower authorities and set the issue to the file of the Assessing Officer to

decide the same afresh in accordance with the law. The assessee is also

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directed to furnish all the details and proof as and when required by the

Assessing Officer before passing the order afresh. Needless to mention that

the assessee should be provided reasonable and proper opportunity of

hearing.

7.

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

purposes.

Order pronounced in the open court on 30 /05/2018

Sd/- sd/- (PAVAN KUMAR GADALE) (N.S Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Ranchi; Dated 30 /05 /2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Mr Prem Chand Singh, Bari Co-operative Colony, Bokaro, Jharkhand 2. The respondent: ACIT, Circle-3, Bokaro 3. The CIT(A), Hazaribag 4. Pr. CIT, Hazaribag 5. DR, ITAT, Ranchi 6. Guard file. BY ORDER, //True Copy//

SR.PS, ITAT, CAMP AT RANCHI

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