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TMI Blog2022 (9) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by assessee in memo of appeal filed with Income-Tax Appellate Tribunal, Varanasi (hereinafter called "the tribunal"), reads as under: "1. Because the Ld. CIT (A) was not justified to conform the disallowance of material expanses made by the assessing officer an amount of Rs 215000.00 on lump-sump basis without any specific ground. 2. Because the Ld. CIT (A) was not justified to conform the following disallowance on lump-sump basis which has duly been made by the A O. S.No. Particulars Amount 1 Staff Welfare 6930 2 Repair and Maintenance 28000.00 3 Telephone and mobile 18500.00 4 Travelling and conveyance 22010.00 3. Because the appellant placed reliance on the following judgment. The department has not established in any case that the disallowance made by the assessing officer would be the real income of the assessee. The Hon'ble Allahabad high court in case of CIT Kanpur Vs Baburam Ajit Prasad ITR 106 (1977) 818 has already given the said opinion which is binding on the authority. It is hereby noted that the Hon'ble ITAT Allahabad in the case of Kanha Banasapati Ltd. Vs Joint CIT Range -2 has given finding that the Add-hock disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment as well as assessee filed an appeal with Allahabad-tribunal, in the first round of litigation. The tribunal vide order dated 5th June, 2015 in the first round of litigation, set aside the assessment order to the file of AO for adjudication on various issues. In the second round of litigation, the AO issued statutory notices and details were called by AO from the assessee, during the course of assessment in second round of litigtion. The assessee filed details called for by AO and also produced books of accounts before the AO. The AO passed assessment order dated 2.11.2016 under Section 143(3) read with Section 254 of the Act in the second round of litigation, wherein certain additions were made by AO and the income of the assessee was assessed at Rs.1,43,55,100/- as against returned income of Rs. 1,28,83,150/- . The assessee being aggrieved by assessment order filed an appeal before ld. CIT(A), in second round of litigation . The ld. CIT(A) granted certain relief's to the assessee, as the appeal of the assessee was part allowed by ld. CIT(A) vide appellate order dated 02.03.2020 . We will deal with and restrict ourselves in this appeal with the issue's raised by the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of the 1961 Act: S.No. Particulars Claimed amount In Rs. Disallowed Amount (In Rs.) 1 Staff Welfare 69343/- 6930.00 2 Repair and Maintenance 483216/- 28000.00 3 Telephone and mobile expenses 269783/- 18500.00 4 Travelling and conveyance expenses 192174/- 22010.00 Total of Rs. 75,440/- Disallowance of Rs. 75,440/-" Thus, these two above at 4a and 4b are only two grievances of the assessee, in its appeal filed with tribunal and we will restrict ourselves to these two issues only. It could not be shown to us by both rival parties that aggrieved by relief granted by ld. CIT(A), Revenue has come in appeal before tribunal. 5. The matter went to ld. CIT(A) at the behest of the assessee in the second round of litigation, and Ld. CIT(A) dismissed appeal of the assessee on both these issues, vide appellate order dated 02.03.2020 in second round of litigation, by holding as under: "Decision I have gone through the facts and the written submissions filed along with the details filed enclose therein. During the remand proceedings appellant was asked to produce bills and vouchers in support of expenses claimed in books of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elfare expenses to the tune of Rs. 6930/-, Repair and Maintenance Expenses of Rs. 28,000/-, Telephones and Mobile Expenses to the tune of Rs. 18,500/- and Travelling and Conveyance Expenses to the tune of Rs. 22,010/- . The ld. Counsel for the assessee opened arguments before the Bench and submitted that first issue concerns itself with disallowance of Material Expenses, to the tune of Rs. 2,15,000/- which was disallowed by the AO, as against the total Material expenses of Rs. 7,26,25,516/- claimed by the assessee. Our attention was drawn to assessment order passed by AO and it was submitted that all the bills /vouchers related to Material Expenses were submitted before the authorities below and books of accounts were duly produced. It was submitted that AO as well ld. CIT(A) have observed that Material Expenses to the tune of Rs. 2,15,000/- could not be verified, while Material Expenses to the tune of Rs. 7,24,10,516/- expenses were duly verified by the AO . It was submitted by ld. Counsel for the assessee that both AO as well ld. CIT(A) have not given any details as to the break up of Material expenses of Rs. 2,15,000/- which could not be verified by the AO as well by ld. CIT(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Jan., 2022, wherein Hon'ble Supreme Court held that for the purposes of computing limitation, period from 15th March 2020 till 28th February, 2022 shall be excluded. This appeal was filed on 05th January, 2021, while appellate order was passed by ld. CIT(A) on 02nd March, 2020 which is stated to be received by assessee on 06th April, 2020. Thus, we hold that there is no delay in filing of this appeal keeping in view of binding decision of Hon'ble Supreme Court extending limitation period in view of Covid19 pandemic and directing to exclude period from 15th March,2020 to28th February, 2022, as this appeal is covered by the aforesaid decision and directions of Hon'ble Supreme Court. 8. We have heard rival contentions and perused material on record. We have observed that this is second round of litigation before tribunal. We have observed that effectively two issues survives for our adjudication which are raised by assessee in its appeal filed with tribunal in the second round of litigation, and we shall restrict ourselves to these two issues. It is not shown by both the parties that Revenue has come in appeal before tribunal agitating relief granted by ld. CIT(A) in the second rou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of Rs. 2,15,000/-. We are of the view that ratio of decision of Hon'ble Allahabad High Court in the case of Rimzhim Ispat(supra) has no applicability to the facts and circumstances of this case, as in the instant case the assessee produced books of accounts as well vouchers/bills before the authorities below and primary onus which lay on the assessee stood discharged, and it is now for the authorities below to bring out specific defects in the books of accounts as well bills and vouchers furnished by the assessee after making necessary enquiries and investigation and the authorities are to point out which expenses are not allowable and reasons thereof, which has not been done by authorities below in this case. Same is the fate of other expenses to the tune of aggregating Rs. 75,440/-, on account of staff welfare, repairs and maintenance, telephone and mobile expenses and travelling and conveyance, which disallowance to the tune of aggregating Rs. 75,440/- also stood deleted. We order accordingly. 9. Thus, the appeal of the assessee in ITA no. 01/Vns/2021 for ay: 2010-11 is allowed. We order accordingly Order pronounced on 12/09/2022 at Allahabad, U.P. in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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