AT POLYMER AGENCY PRIVATE LIMITED, COIMBATORE V. DCIT,CORPORATEVCIRCLE-1, COIMBATORE

ITA 211/CHNY/2022

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1183 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 04-04-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर अपीलीय अिधकरण ‘सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद2 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.211/Chny/2022 (िनधा1रण वष1 / Assessment Year: 2012-13) AT Polymer Agency Pvt. Ltd. 49A, K.R. Puram, Nava India Road, Coimbatore – 641 006. बनाम/ V s. DCIT Corporate Circle-1, Coimbatore. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAC C A- 4 4 7 4 - H (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) – Ld. DR सुनवाई की तारीख/Date of Hearing : 26-05-2022 घोषणा की तारीख /Date of Pronouncement : 26-05-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2012-13 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16.03.2022 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 16.03.2015. The sole grievance of the assessee is disallowance of Rs.54 Lacs u/s 40A(3). 2. Though the assessee has filed an adjournment application, however, after perusal of orders of lower authorities, the bench formed ITA No.211/Chny/2022 - 2 - an opinion that the matter has to be restored back to the file of Ld. AO since sufficient documentary evidences could not be filed by the assessee before lower authorities. 3. The impugned disallowance stem from the fact that that assessee debited expenditure of Rs.54 Lacs in the Profit & Loss Account which was held to be cash payment exceeding Rs.20,000/- which would attract disallowance u/s 40A(3). The same has been tabulated in para 3.1 of the assessment order. The assessee submitted that Mr. D.Karthikeyan of assessee-company colluded and conspired with other branch managers and staff and manipulated the stock, computer accounts and cash etc. Thus, there was misappropriation of funds which was debited to Profit & Loss Account. However, in the absence of any details forthcoming from the assessee, Ld. AO made disallowance u/s 40A(3). The position substantially remained the same during appellate proceedings. Consequently, the disallowance was confirmed against which the assessee is in further appeal before us. 4. Having considered the orders of lower authorities, we set aside the impugned order and restore the matter back to the file of Ld. AO for fresh adjudication with a direction to the assessee to substantiate the claim. Needless to add that adequate opportunity of hearing shall be granted to the assessee. 5. The appeal stands allowed for statistical purposes. Order pronounced on 26 th May, 2022. Sd/- (V. DURGA RAO) ाियक सद2 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद2 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 26-05-2022 EDN/- ITA No.211/Chny/2022 - 3 - आदेश की Uितिलिप अ 7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF