M/S. RAMA VINIMAY COAL PRIVATE LIMITED,KOLKATA vs. ITO, WARD - 4(2), KOLKATA, KOLKATA

We now proceed to deal with the main appeal. The assessee’s above-stated main appeal itself with the consent of both the parties. Its sole substantive ground challenges both the lower authorities’ identical action of disallowing 20% of its wage and salary claim of Rs.49,75,910/-; coming to Rs.9,95,182/- during the course of assessment as upheld in the lower appellate proceedings. Ld. Departmental Representative fails to dispute that the Assessing Officer has accepted the assessee’s impugned claim in principal @80% since he has chosen to disallow the remaining 20% only on the ground that it failed to substantiate the increase in the impugned expenditure to that incurred Rs.21,37,742/- in the preceding Assessment Year. Ld. Departmental Representative fails to rebut that neither of the lower authority has compared the assessee’s corresponding revenue receipts/business turnover of two Assessment Years as well as the corresponding figures in succeeding Assessment Years. Case file suggests that the assessee has also not been able to prove to sufficiently discharge his onus qua the impugned expenses. It further emerges from the case files that the assessee’s net profit ratio in Assessment Years 2012-13, 2013- 14 & 2014-15 has fluctuated between 0.97%, 0.87% and 1.73% on turnover of Rs.5,83,00,009/-, 88,02,98,221/- and 71,70,97,933/-; respectively. We deem it appropriate in these peculiar facts and circumstances that the disallowance of Rs.20% in issue is on a higher side and therefore, larger interest of justice would be met in case of the same is restricted to 10% only. We order accordingly. It is made clear that our instant situations, finding shall not be treated as precedent in other Assessment Years. Necessary computation to follow. The assessee’s main appeal in is partly allowed.