BHARATIYA BAROOD UDHYOG,NAGPUR V. DCIT JCIT CIRCLE 2, NAGPUR

ITA 293/NAG/2024

AI Insights

The case involves Bharatiya Barood Udyog, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) regarding disallowances related to Provident Fund contributions and bonuses for the assessment year 2017-18. The appellant argued that the disallowances were made despite the payments being made before the due date of filing the income tax return, and cited a Supreme Court case (M/s Alom Extrusion Limited & Others) to support their position. However, during the proceedings, the appellant decided to withdraw the appeal in favor of participating in the Direct Tax Vivad se Vishwas Scheme, 2024, which aims to resolve tax disputes.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24443 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: M/s Alom Extrusion Limited & Others vs. 319 ITR 306 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: NARESH JAKHOTIA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER SMC MATTER ITA no.293/Nag./2024 (Assessment Year : 2017–18) Bharatiya Barood Udyog 1, Sanyal House, Sadar Near Corporation Park Nagpur 440 001 PAN – AAGFB8567P ……………. Appellant v/s Dy. Commissioner of Income Tax Circle–2, Nagpur ……………. Respondent Assessee by : Shri Naresh Jakhotia Revenue by : Shri Abhay Y. Marathe Date of Hearing – 01/04/2025 Date of Order – 03/04/2025 O R D E R Captioned appeal by the assessee is emanating from the impugned order dated 21/03/2024, passed by the learned Commissioner of Income Tax (Appeals)–1, Coimbatore, [“learned CIT(A)”], for the assessment year 2017–18. 2. In its appeal, the assessee has raised following grounds:– “1. Because the learned Commissioner (Appeals) has erred in disallowing Provident Fund deposited before the due date of filing of the income tax return and disallowing bonus payable though it is paid before filing of the income tax return. 2. Because the learned Commissioner (Appeals) has erred in ascertaining the details of expenditure though it was provided by the assessee. 2 Bharatiya Barood Udyog ITA no.293/Nag./2024 3. Because the assesse had deposited the provident fund of Rs.1,22,383/- that was due on 15.01.2017 on 13.02.2017, and the amount of Rs.17,396/- disallowed is of bonus. All this information is clearly stated in TAR enclosed. 4. Because the case law of the Honorable Apex Court in case of M/s Alom Extrusion Limited & Others reported at 319 ITR 306 (SC) in the matter of provident fund contributions of the employees is totally misconstrued. Instead of allowing the amounts are disallowed. 5. Because in the detailed Tax Audit Report enclosed clearly states the above mentioned facts. 6. The assessee craves leave to add or alter any of the ground of appeal on or before the date of hearing. The assesse requests for an opportunity for personal hearing in this matter.” 3. When the case was called for hearing, the learned Counsel for the assessee, by way of its application dated 28/02/2025, submitted that he has opted for the Direct Tax Vivad se Vishwas Scheme, 2024 (DTVsV Scheme, 2024) and hence he may be permitted to withdraw the appeal. He, however, requested the Bench that in the event of Department’s decision is not acceptable to the assessee, the assessee be granted liberty to file fresh appeal before the Tribunal. The learned Departmental Representative has no objection in the submissions of the assessee. 4. I have heard the arguments of the parties, perused the material available on record and gone through the orders of the authorities below. In view of the submissions made by the learned Counsel for the assessee as aforesaid, permission is hereby granted to withdraw the present appeal filed by the assessee. I am further of the opinion that in case, the assessee does not succeed on the declaration filed under DTVsV Scheme, in that event, the assessee will be at liberty get this appeal restored in its original position by filing Miscellaneous Application and recall this order for hearing on merits. 5. In the result, appeal filed by the assessee is dismissed as withdrawn. Order pronounced in the open Court on 03/04/2025 NAGPUR, DATED: 03/04/2025 Sd/- V. DURGA RAO JUDICIAL MEMBER 3 Bharatiya Barood Udyog ITA no.293/Nag./2024 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "