SHRI MANOJ KUMAR SINGHAL,SRIGANGANAGAR vs. ITO, WARD-3, SRIGANGANAGAR

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ITA 206/JODH/2018Status: DisposedITAT Jodhpur20 July 2018AY 2013-144 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, considering the nature of the business, estimated the expenses at Rs. 10,000/- per month. This resulted in confirming a disallowance of Rs. 1,20,000/-.

What were the facts?

The assessee declared net commission income after deducting Rs. 2,40,000/- as incidental expenses from gross receipts of Rs. 6,05,889/-. The Assessing Officer estimated monthly expenditure at Rs. 5,000/-, allowing Rs. 60,000/- in total.

What were the issues?

The primary issue was the quantum of expenditure to be allowed for earning commission income. The tribunal also addressed grounds related to interest charges, though the decision focused on the disallowance.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH (SMC

Before: SHRI R.C. SHARMA

For Appellant: Shri Rajendra Jain (Adv.)
For Respondent: Shri Shri A. K. Das (JCIT)
Hearing: 18/07/2018

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH (SMC), JODHPUR

BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER

ITA No. 206/Jodh/2018 (ASSESSMENT YEAR-2013-14

Shri Manoj Kumar Singhal, Vs The Income Tax Sriganganagar Officer, Ward-3, Sriganganagar (Appellant) (Respondent) PAN: AWJPS8776N

Assessee By Shri Rajendra Jain (Adv.) Revenue By Shri Shri A. K. Das (JCIT) DR Date of hearing 18/07/2018 Date of 20/07/2018 Pronouncement

O R D E R PER: R.C. SHARMA, AM

This is an appeal filed by the assessee against the order of

the CIT(A), Bikaner dated 24/10/2017 for the A.Y. 2013-14 in

the matter of order passed u/s 143(3) r.w.s 147 of the Income-

tax Act, 1961 [hereinafter referred to as ‘the Act’, for short].

The grounds raised by the assessee in appeal are reproduced as

under:

“1. That on the facts and in the circumstances of the case, the ld. CIT(A)

grossly erred in sustaining the disallowance of expenses of Rs. 1,56,000/-

out of expenditure claimed by the assessee.

2 ITA No. 206/Jodh/2018 Shri Manoj Kumar Singhal, Vs. ITO

2.

That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in restricting expenditure to Rs. 7000/- per month as against Rs. 20,000/- claimed by the assessee.

3.

That on the facts and in the circumstances of the case, the ld. CIT(A) erred in charging interest u/s 234D, 244A & 220(2).

4.

That the petitioner may kindly be permitted to raise any additional or alternative grounds at or before the time of hearing.

5.

The petitioner prays for justice & relief.”

2.

In this appeal, the assessee is aggrieved for disallowance

of expenditure incurred for earning commission income.

3.

Rival contentions have been heard and record perused. The

facts in brief are that the appellant was deriving income of

Commission from Globus Logistic P. Ltd. Jaipur wherefrom he

declared net income of Rs. 3,66,510/-, however in respective

column relating to commission in the Income Tax Return

appellant had shown net commission income of Rs. 3,65,889/-

whereas total commission receipts were of Rs. 6,05,889/-.

During the assessment proceedings appellant explained to have

shown net commission of Rs. 3,65,889/- after excluding Rs.

2,40,000/- for incidental necessary expenditure from gross

commission receipts of Rs. 6,05,889/-.

4.

During the course of assessment proceedings, the

3 ITA No. 206/Jodh/2018 Shri Manoj Kumar Singhal, Vs. ITO

Assessing Officer estimated monthly expenditure of Rs. 5,000/-.

Accordingly, the total of expenditure of Rs. 60,000/- was

allowed.

5.

By the impugned order, the ld CIT(A) estimated

expenditure at Rs. 7,000/- per month and the balance was

disallowed. The assessee is in appeal before me action of the

order of ld. CIT(A).

6.

I have heard the rival contentions and carefully gone

through the orders of the authorities below. Considering the

nature of assessee’s business vis a vis nature and quantum of

expenditure incurred for earning the same. I estimate expenses

of Rs. 10,000/- per month. Accordingly, disallowance is

confirmed to the extent of Rs. 1,20,000/-. We direct

accordingly.

In the result, appeal of the assessee is allowed in part.

Order pronounced in the open court on 20/07/2018.

Sd/- [R.C. SHARMA] Accountant Member Dated : 20/07/2018

4 ITA No. 206/Jodh/2018 Shri Manoj Kumar Singhal, Vs. ITO

*Ganesh Kr. Copy to : 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File (ITA No. 206/Jodh/2018)

Assistant Registrar Jodhpur Bench

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