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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI DUVVURU RL REDDY & SHRI G. MANJUNATHA
PER G.MANJUNATHA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is directed against order of learned CIT(A)-5, Chennai dated 20.12.2018 and pertains to assessment year 2014-15.
2. The assessee has raised the following grounds of appeal:-
“1. Your appellant submits that the order of the Commissioner of Income Tax (Appeals) is against the facts of the case and bad in law.
Your appellant submits that the authorities below had not considered properly the facts relating to the case of your appellant and the evidentiary value of the documents produced at the time of personal hearing.
3. Your appellant ought to have considered the submissions of the appellant both at the time of bearings before the learned Assessing Officer and before the Honourable Commissioner of Income Tax (Appeals).
Your appellant submits that the Commissioner of Income Tax (Appeals) had not considered the relevant grounds of appeal with reference to the adhoc addition made by the Assessing Officer and was not correct in confirming the order of the Assessing Officer without any discussion on that paint.
5. Your appellant submits that the learned Assessing Officer had made an ad hoc addition to the income without any proper discussion on the reasoning about his addition - there is no recording of facts, no discussion about any comparable cases or the past history or for working for the additions.
6. Your appellant submits that the Honourable Commissioner of Income Tax (Appeals) had not considered the decision of the Rajasthan High court in CIT Vs. Ram Singh in TA No, 117/2004 dt. 21,01.2014 which applies with all force to the facts of your appellant.
7. In view of the above grounds of appeal, your appellant prays to the Honourable Tribunal to quash the orders of the CIT(A) and the Assessing Officer and thus render justice.”
Brief facts of the case are that assessee company is engaged in the business of purchase and sale of bulk drugs filed its return of income for assessment year 2014-15 on 30.09.2014 declaring total income of `9,78,230/-. The assessment has been completed u/s. 143(3) of the Act on 20.12.2016 determining total income at `54,69,332/- by making additions towards 0.25% disallowance of purchases on the ground that assessee has failed to file necessary bills and vouchers in support of purchases. The Assessing Officer has also made addition towards ad-hoc disallowance of expenses for want of bills and vouchers.
4. The assessee carried the matter in appeal before first appellate authority, but could not succeed. The learned CIT(A) for the reasons recorded in his appellate order dated 20.12.2018 dismissed appeal filed by assessee and confirmed additions made towards disallowance of purchases and expenses on the ground that assessee has failed to produce purchase invoices and vouchers in support of lorry freight, sales promotion and travel expenses so as to remit back the issue to the file of the Assessing Officer for further verification.
Aggrieved by the learned CIT(A) order, the assessee is in appeal before us.
The learned AR for the assesse, at the time of hearing, submitted that assessee could not file necessary evidences before the Assessing Officer due to paucity of time . However, all purchases and expenses debited into profit and loss account are supported by necessary bills and vouchers and assessee is ready to submit all evidences before the Assessing Officer. Therefore, one more opportunity may be given to assessee to file necessary evidences before the Assessing Officer to justify purchases and expenses debited into profit & loss account.
The learned DR, on the other hand, fairly agreed that issue may be set aside to the file of Assessing Officer for fresh consideration.
We have heard both parties, perused materials available on record and gone through orders of the authorities below. It is a case of assessee before us that purchases and expenses debited into profit & loss account are fully supported by bills and vouchers, but due to paucity of time, it could not file necessary evidences before Assessing Officer as well as learned CIT(A) .
If one more opportunity is given, assessee is willing to produce necessary evidences to support purchases and other expenses claimed in profit & loss account . Therefore, considering plea of the assessee that due to paucity of time it could not file necessary supporting evidences before the Assessing Officer and learned CIT(A), we deem it appropriate to give one more opportunity to assessee. Hence, we set aside appeal to the file of the Assessing Officer and direct him to consider issue afresh in light of various evidences filed by assessee to justify purchases and expenses debited into profit and loss account.
Needless to say, the assessee shall file necessary evidences to support its case without seeking any adjournment.
In the result, appeal filed by assessee is treated as allowed for statistical purposes.
Order pronounced in the open court on 9th March, 2021