What did the Tribunal hold?

The Tribunal, following its own precedent for AY 2012-13, restricted the ad-hoc addition on sundry labor expenses to 5% of the total expenditure. The balance of the addition was deleted.

The assessee's appeal for AY 2014-15 challenged an ad-hoc addition on account of sundry labor expenses. The Assessing Officer made an addition of 25%, which was restricted to 10% by the CIT(A).

What were the issues?

The primary issue was the quantum of ad-hoc addition to be made on account of sundry labor expenses when the expenses were not fully substantiated.

Push Logistics & Warehousing… vs ACIT | ITAT Mumbai 2019

Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: HON’BLE SHRI MAHAVIR SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [in short referred to as ‘AY’] 2014-15 contest the order of Ld. Commissioner of Income-Tax (Appeals)-5, Mumbai, [in short referred to as ‘CIT(A)’], Appeal No.IT-310/16-17/60/1718 dated 12/06/2017 qua confirmation of certain adhoc addition of Rs.10.38 Lacs on account of sundry labor expenses.

Push Logistics & Warehousing Pvt.Ltd. Assessment Year :2014-15 2. Both the representative, at the outset, converge on the point that the identical issue has already been adjudicated by the Tribunal in assessee’s own case for AY 2012-13 dated 29/08/2018, a copy of which has been placed on record.

Facts on record reveal that the assessee has been saddled with adhoc addition of 25% on account of sundry labour expenses vide assessment order dated 26/12/2016. The Ld. first appellate authority, vide impugned order dated 12/06/2017, restricted the same to 10%. Aggrieved, the assessee is in further appeal before us.

Upon perusal of cited order of the Tribunal dated 29/08/2018, we find that identical additions, made by the revenue in AY 2012-13 has been restricted to 5% by the Tribunal. Facts and circumstances, being pari-materia the same, taking the same view, we direct Ld. AO to restrict the addition to 5% of total expenditure of Rs.1,03,84,823/- which comes to Rs.5,19,241/-. The balance addition stands deleted.

Resultantly, the appeal stands partly allowed. Order pronounced in the open court on 03rd April, 2019. Sd/- Sd/- (Mahavir Singh) (Manoj Kumar Aggarwal) �ाियक सद� / Judicial Member लेखा सद� / Accountant Member मुंबई Mumbai; िदनांक Dated : 03/04/2019 Sr.PS, Jaisy Varghese

Push Logistics & Warehousing Pvt.Ltd. Assessment Year :2014-15

PUSH LOGISTICS & WAREHOUSING PRIVATE LIMITED,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX 2(2)(2), MUMBAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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