SHREE RAM CARGO PVT.LTD,,PUNE vs. INCOME-TAX OFFICER, WARD - 6(2),, PUNE

This assessee’s appeal for assessment year 2013-14 arises against the CIT(A)-4, Pune’s order dated 13-12-2017 passed in case No. CIT(A), Pune-4/10596/2016-17, in proceedings u/s. 143(3) of the Income Tax Act, 1961; in short “the Act”.

It emerges at the outset that the assessee’s sole substantive grievance canvased in the instant appeal challenges correctness of both the lower authorities action disallowing its cash payment of Revenue expenditure exceeding the specified limits; involving total amount of Rs.5311299/-, made in the course of assessment dated 31-03-2016 as upheld in the CIT(A)’s order.

Mr. Walimbe vehemently argued in light of the CIT(A) detailed discussion in pages 8 to 9 para 5.3.3 that the assessee had not filed all the relevant details of the compelling reasons for the impugned cash payment. These Revenue’s arguments are found to be against the facts on record. Page 62 in the assessee’s paper book suggest that it had filed the detailed compilation running into 671 pages primarily suggesting that an amount of Rs.49.20 lacs involved its inter branch payments at the very entity level itself. The same is not found to be in the nature of additional evidence requiring any further factual verification. This is indeed couple with the fact that the department had carried out a survey action at assessee’s premises on 09-07-2013 wherein all these details had been very well produced. That being the case, we are of the opinion that the learned lower authorities have erred in law and on facts in disallowing the assessee’s payments made to its Nathdwara, Dausa, Jodhpur, Unit-II, Borunda and Pune head office branches (pages 74 to 165). The impugned disallowance component of Rs.49.20 lacs stands deleted in light of the foregoing clinching factual position.

So far as the remaining amount of the impugned disallowance of Rs.4311299/- (excluding Rs.49.20 lac) is concerned, Mr. Phadke would hardly explained the relevant facts and circumstances justifying the assessee’s cash payment. We affirm the learned lower authorities’ action to this effect. The assessee’s sole substantive grievance partly accepted. Necessary computation shall follow as per law.

This assessee’s appeal is partly allowed.