SURYA OILS AND EXTRACTIONS PRIVATE LIMITED, KALLAKURICHY V. Ito, corporate ward-6(3), Chennai

ITA 257/CHNY/2023

AI Insights

The case involves Surya Oils and Extractions Pvt. Ltd., a corporate entity engaged in the manufacturing of edible oils, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was concerning the disallowance of gunny bag stitching expenses, freight outward expenses, and water expenses totaling Rs.59.07 Lacs for the Assessment Year 2013-14. The Assessing Officer had disallowed these expenses, considering them bogus as they were supported only by self-made vouchers and paid in cash. The CIT(A) upheld this decision, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133859 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-03-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 26-02-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी वी. द ु गा1 राव, ाियक सद3 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद3 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JUDICIAL MEMBER AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.257/Chny/2023 (िनधा1रण वष1 / Assessment Year: 2013-14) Surya Oils and Extractions Pvt. Ltd. 25 Salem Main Road, Kallakurichi – 606 202. बनाम/ V s. ITO Corporate Ward-6(3), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAB C S -5 0 1 7 -R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : None थ की ओरसे/Respondent by : Mrs. Jothi Lakshmi Nayak (CIT) – Ld. DR सुनवाई की तारीख/Date of Hearing : 30-03-2023 घोषणा की तारीख /Date of Pronouncement : 30-03-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 15-02-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 16-03-2016. In this appeal, the assessee is aggrieved by confirmation of certain additions. The assessee being resident corporate assessee is stated to be engaged in manufacturing of edible oils. None has appeared for ITA No.257/Chny/2023 - 2 - assessee and accordingly, the appeal is decided with the able assistance of Ld. CIT-DR. 2. The sole grievance of the assessee is disallowance of gunny bag stitching expenses, freight outward expenses and water expenses aggregating to Rs.59.07 Lacs. In support, the assessee produced self made vouchers which were not accepted by Ld. AO. Since the payment was made in cash, Ld. AO termed the same as bogus and disallowed the same. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 3. We find that the assessee is a corporate entity and bound to incur impugned expenditure during the course of its business. Merely because the payment was in cash, the expenditure could not be held to be bogus without bringing on record any evidence to support the same. The assessee produced vouchers in support of the expenditure. There is no fact based finding that there is reduction in overall profit of the assessee. Therefore, we estimate the disallowance at 10% and deleted the balance addition. 4. The appeal stand partly allowed. Order pronounced on 30 th March, 2023. Sd/- (V. DURGA RAO) ाियक सद3 /JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद3 / ACCOUNTANT MEMBER चे)ई / Chennai; िदनांक / Dated : 30-03-2023 EDN/- आदेश की Uितिलिप अ 7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु /CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF