ACIT 6(3), MUMBAI vs. MEGA FREIGHT MOVERS LTD, MUMBAI

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ITA 524/MUM/2013Status: DisposedITAT Mumbai04 May 2016AY 2009-102 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that similar disallowances in other assessment years were upheld by the Tribunal, restricting the disallowance to 2% of 20% of cash expenses. Therefore, the Tribunal found no reason to interfere with the CIT(A)'s order.

What were the facts?

The Revenue appealed against the CIT(A)'s order which restricted a disallowance on cash expenses. The Assessing Officer had made a disallowance of 25% of 20% of cash expenses, which the CIT(A) reduced to 2% of 20%.

What were the issues?

Whether the disallowance on cash expenses made by the Assessing Officer was justified, or if the restriction by the CIT(A) was appropriate based on previous Tribunal decisions.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned, but relates to disallowance of expenses.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI B.R. BASKARAN (AM) & SHRI AMIT SHUKLA (JM)

For Appellant: Shri Amit Agarwal
For Respondent: Shri Prakash L. Pathade
Hearing: 12.04.2016Pronounced: 04.05.2016

The appeal filed by the Revenue is directed against the order dt. 30.10.2012 passed by CIT(A) – 12, Mumbai and relates to Assessment Year 2009-10. The Revenue is aggrieved by the decision of CIT(A) in restricting the disallowance to 2% of 20% of the cash expenses as against the disallowance of 25% of 20% of the cash expenses made by the Assessing Officer.

2.

We heard the parties and perused the record. We noticed that identical disallowances have been made by the Assessing Officer in the 2 M/s. Mega Freight Movers Ltd.

Assessment Year 2008-09 as well as in AY 2010-11 and the Tribunal has upheld the order of the Ld. CIT(A) in restricting the disallowance to 2% of 20% of the cash expenses. The order relating to Assessment Year 2010-11 has been passed by the coordinate bench of the Tribunal on 16.12.2015 in ITA No. 5186/Mum/2013. Thus, we noticed that the order passed by the Ld. CIT(A) is in line with the decision rendered by the Tribunal, and accordingly we do not find any reason to interfere with the order passed by the Ld. CIT(A) for the year under consideration on this issue.

3.

In the result, the appeal filed by the Revenue is dismissed.

Order pronounced in the open court on 4th May, 2016.

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