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Income Tax Appellate Tribunal, JODHPUR BENCH (SMC
Before: SHRI R.C. SHARMA
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
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.
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).
That the petitioner may kindly be permitted to raise any additional or alternative grounds at or before the time of hearing.
The petitioner prays for justice & relief.”
In this appeal, the assessee is aggrieved for disallowance
of expenditure incurred for earning commission income.
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/-.
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.
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).
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