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Income Tax Appellate Tribunal, “A” BENCH, PUNE
Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM
आदेश / ORDER
PER VIKAS AWASTHY, JM :
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-1, Nashik dated 19-05-2016 for the assessment year 2012-13.
The assessee in appeal has raised only one ground. The same reads as under : “1. In view of the facts and circumstances of the case, evidences on record and the provisions of law, the learned CIT (Appeals) erred in
2 ITA No. 1664/PUN/2016, A.Y. 2012-13
upholding the disallowance of cash purchases to the extent of 10% of total cash purchases made by appellant during the previous year relevant to A.Y. 2012-13. Therefore, it is prayed to delete the said disallowance, confirmed by the learned CIT (A).”
Shri Pramod Shingte appearing on behalf of the assessee submitted that the assessee is engaged in the business of trading in Paithani, Sarees, Kad & Silk etc. In scrutiny assessment proceedings, the Assessing Officer disallowed Rs.14,67,310/- on account of purchases made in cash by the assessee. The Assessing Officer estimated aforesaid disallowance @ 20% of cash purchases. The assessee carried the matter in appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax (Appeals) restricted the addition to 10% of the cash purchases i.e. Rs.7,33,655/-. Now, the assessee is in second appeal before the Tribunal against the addition confirmed by the Commissioner of Income Tax (Appeals). The ld. AR submitted that in assessment year 2010-11 similar disallowance was made by the Assessing Officer in respect of cash purchases. The Assessing Officer disallowed 20% of the cash purchases. The Commissioner of Income Tax (Appeals) restricted the disallowance to 10% i.e. Rs.45,88,950/-. The Tribunal further reduced the addition by estimating disallowance at Rs.25,00,000/-. The ld. AR furnished the copy of Tribunal order in assessee’s own case in ITA No. 645/PUN/2015 for assessment year 2010-11 decided on 08-09-2017.
On the other hand Shri Sanjeev Ghei representing the Department vehemently defended the findings of Commissioner of Income Tax (Appeals) and prayed for dismissing the appeal of assessee.
We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. We have also considered the order of Co-ordinate Bench in assessee’s own case in ITA No. 645/PUN/2015 (supra). The only grievance of the assessee in appeal
3 ITA No. 1664/PUN/2016, A.Y. 2012-13
is against confirming of disallowance Rs.7,33,655/- on account of cash purchases made by the assessee. We find that in assessment year 2010-11 ad hoc disallowance was made by the Assessing Officer in respect of cash purchases in similar manner. The Tribunal reduced the disallowance from Rs.45,88,950/- to Rs.25,00,000/-. The facts in the assessment year under appeal are identical. Taking into consideration entirety of facts, we are of considered view restricting disallowance to Rs.4,00,000/- in assessment year under appeal would be reasonable and would meet the ends of justice. Accordingly, the impugned order is modified and the ground raised by the assessee in appeal is partly allowed.
In the result, the appeal of assessee is partly allowed in the terms aforesaid.
Order pronounced on Friday, the 31st day of August, 2018.
Sd/- Sd/- (डी. करुणाकरा राव/D. Karunakara Rao) (ववकास अवस्थी / Vikas Awasthy) ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER ऩुणे / Pune; ददनाांक / Dated : 31st August, 2018 RK आदेश की प्रयिलऱवऩ अग्रेवषि / Copy of the Order forwarded to : अऩीऱाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2. आयकर आयुक्त (अऩीऱ) / The CIT(A)-1, Nashik 3. 4. The Pr. Commissioner of Income Tax-1, Nashik ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, “ए” बेंच, 5. ऩुणे / DR, ITAT, “A” Bench, Pune. गाडड फ़ाइऱ / Guard File. 6. //सत्यावऩत प्रयत // True Copy// आदेशानुसार / BY ORDER,
यनजी सधचव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩुणे / ITAT, Pune