Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.
Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE
ORDER Per:Anikesh Banerjee, JM:
The instant appeal of the revenue is directed against the order of the ld. Commissioner of Income Tax(Appeals)-1, Ludhiana, [in brevity the CIT(A)] bearing appeal no.ROT-121/IT/CIT(A)-1/Ldh./2018-19, date of order 07.02.2019, the order passed u/s 250(6) of the Income Tax Act 1961, [in brevity the Act] for A.Y. 2013-14.The impugned order was originated from the order of the ld. Income Tax Officer,Baramulla,(in brevity the AO) order passed u/s 143(3) of the Act, date of order 31.03.2016.
The revenue has raised the following grounds: - “1. Whether the Ld.CIT (A) was right in facts and circumstances in directing the Assessing Officer to check from records that the said amount of Rs. 1,73,86,677/- was duly accounted for in the computation of taxable income when the assessing officer has made addition based on records.
2. Whether the Ld. CIT (A) was right in facts and circumstances in deleting the addition of Rs. 4,91,360/- made by the Assessing on account of expenses on carriage ,discount on sales, broachers and manuals, building repair and maintenance, printing and stationery and travelling allowance.”
3. The brief fact of the case is that the assessment was completed assessment u/s 143(3) &the addition was made in different heads. The only two issues are agitated before the bench by the revenue challenging the order of ld. CIT(A). One is the addition of VAT payable u/s 43B, amount of Rs.1,73,86,677/- which was duly deleted by the ld. CIT(A) against the order of the ld. AO. In other issue, disallowance of the expenses amount of Rs.4,91,360/- which was also deleted by the ld. CIT(A) in the appeal order. The revenue has grievance that the order passed without considering any documents. In both the revenue’s grounds the CIT(A) had allowed the appeal of assessee.
Being aggrieved, revenue has filed an appeal before us.
No one was present on behalf of the assessee. With the consent of the ld. Sr.
DR the matter is taken for adjudication.
The addition was made related to VAT payable which was reflected in the balance sheet of the assessee amount of Rs.1,70,85,560/-. After the thoroughly investigation by the AO, there was no proof related to the payment of the same before the filing of the return u/s 139 of the Act. So, the assessee has violated provision of section 43B- of the Act.
The certain expenses are disallowed by the ld. AO @ 10% on Rs.49,13,603/- which is worked out amount of Rs.4,91,360/-. The ld. CIT(A) deleted the addition without any basis of evidence.
The ld. Sr. DR vehemently argued and took our attention in the order of the ld. CIT(A) in para 5,6 and 7 which are reproduced as below:
“5. Vide the second ground of appeal, the appellant has challenged the addition of Rs.1,70,85,560/-. However, on a perusal of the impugned order, it is noticed that no such addition has been made to the returned income. The aforesaid ground of appeal is, thus, considered as infructuous. It is ordered accordingly.
6. Vide the 3rd and 4th grounds of appeal, the appellant has challenged the action of the AO in disallowing 10% of the expenses on carriage, discount on sales, brochure and manuals, building repair and maintenance, DG maintenance, office repairs and maintenance, printing & stationery and travelling allowance and incentives, all aggregating to Rs.49,13,603/-.
7. It has been noted from the impugned order of assessment that the aforesaid disallowance has been affected very casually and merely on estimate without bringing on record any instance of booking of inadmissible expenses. Such disallowance cannot stand the test of appellate scrutiny. The impugned addition of Rs.4,91,360/-is, thus, directed to be deleted. It is ordered accordingly.”
8. We considered the argument, orders of revenue authorities and relied on the documents available in the record. We thoroughly observed the order of the appellate authority it is found that the appeal authority had passed the order without application of mind related to rejection of VAT payable u/s 43B. Related to disallowance all the expenses Rs.4,91,360/-. The ld. CIT(A) had not verified any documents. The assessee during hearing was not able to bring any proof before the ld. CIT(A) for disposal of the said issue. We find that the ld. CIT(A) had passed the order without proper care and without taking cognizance of the order of the ld. AO. The ld. Sr. DR has pointed out that there is lot of infirmity in the observation of the order of CIT(A). Accordingly, we set aside the order of the ld. CIT(A). Also, the assessee should get reasonable opportunity of hearing related to its matter.
9. In the result, the ground of the revenue appeal bearing ITA 353/Asr/2019 is allowed for statistical purpose.
Order pronounced in the open court on 27.09.2022