Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORESHRI RAJPAL YADAV, JUDICIAL MEMBER आयकर अपील सं./ ITA No. 671/Ahd/2016 �नधा�रणवष�/Assessment Year: 2011-12 Xplora Design Skool, Vs. The Income-tax Officer, 3rd Floor, AK Patel House, Ward 10 (4), Opp Cross Word, Mithakhali Ahmedabad Six Roads, Ahmedabad PAN : AAAFX 0111 D अपीलाथ�/ (Appellant) �� यथ�/ (Respondent) Assessee by : BN Rao, AR Revenue by : Sonia Kumar, Sr DR सुनवाई क� तार�ख/Date of Hearing : 10/10/2017 घोषणा क� तार�ख /Date of Pronouncement: 11/10/2017 आदेश/O R D E R The assessee is in appeal before the Tribunal against the order of the learned CIT(A), Ahmedabad-5, Ahmedabad dated 04.01.2016 passed for Assessment Year 2011-12.
Though the assessee has taken four grounds of appeal, but its main grievance revolves around a single issue viz. the ld. CIT(A) is not justified in confirming the disallowance of Rs.2,65,399/- being 10% of the total expenses of Rs.26,53,990/- shown by the assessee in the P&L account towards various expenses. 3. The brief facts of the case are that the assessee is a firm engaged in imparting vocational training in the field of Animaiton and Multimedia in the name and style of M/s. Xplora Design Skool. It filed its return of income for the year under consideration on 30.09.2011 declaring Rs. Nil income with a claim of carry forward of unabsorbed depreciation of Rs.1,33,474/-. The case of the assessee was selected for scrutiny
ITA No. 671/Ahd/2016 Xplora Design Skool vs. ITO For AY: 2011-12 2 assessment and a notice under Section 143(2) of the Act was issued on 21.09.2012. During the course of assessment, the assessee was asked to furnish the ledger account of expenses. In response thereto, the assessee furnished the required details. While verifying the ledger account of various expenses debited in the P&L account, the Assessing Officer observed that a total amount of Rs.26,53,990/- has been debited in the P&L account on various heads of expenditure. Therefore, the Assessing Officer made addition of Rs.5,30,798/- by disallowing 20% of total expenditure of Rs.26,53,990/- as personal element in such expenses cannot be ruled out.
Aggrieved by the order of the ld. Assessing Officer, the assessee went in appeal before the ld. CIT(A), who, after considering the submissions of the assessee gave partial relief to the assessee by restricting the addition to 10% of such expenditure.
Further aggrieved, the assessee is now in appeal before the Tribunal. 6. The learned Counsel for the assessee relied upon the submissions as were made before the ld. CIT(A). The learned Departmental Representative, on the other hand, relied upon the order of the ld. CIT(A).
With the assistance of the learned representatives, I have gone through the record carefully. The assessee has not produced any supporting details for claiming the various expenditures under the different heads. Under this compelling circumstance and in the absence of any supporting evidence, the ld. Assessing Officer has made ad-hoc
ITA No. 671/Ahd/2016 Xplora Design Skool vs. ITO For AY: 2011-12 3 disallowance out of expenditure claimed by the assessee. Learned CIT(A) has concurred with the view of the Assessing Officer, but marginally reduced the quantum of disallowance. After analyzing both these orders, I do not find any merit in this appeal of the assessee because, for claiming the expenditure incurred for the purpose of business, the assessee has to produce supporting material exhibiting the fact that the expenditures were incurred exclusively for the purpose of business. Assessee failed to discharge this burden. Therefore, the appeal is devoid of any merit; hence dismissed.
In the result, the appeal of the assessee is dismissed. Order pronounced in the Court on 11th October, 2017 at Ahmedabad.
Sd/- (RAJPAL YADAV) JUDICIAL MEMBER Ahmedabad; Dated 11/10/2017 Biju T., Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT आयकर आयु�त(अपील) / The CIT(A) 4. 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/BY ORDER, TRUE COPY उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad