M/s. U.P. Dyeing & Printing Works, Uttar Pradesh V. ITO, Meerut

ITA 3484/DEL/2017

AI Insights

The case involves M/s. U. P. Dyeing & Printing Works, the appellant, contesting the disallowances made by the Income Tax Officer, Meerut, under section 143(3) of the Income Tax Act, 1961. The primary issues were the disallowance of job work printing expenses amounting to Rs. 13,62,813 and the disallowance of sundry creditors amounting to Rs. 6,05,633. The appellant argued that the expenses were legitimate and related to their business of printing handloom cloths. The Tribunal examined the records and found that the Revenue authorities failed to provide adequate reasons or evidence to support their disallowances, leading to the decision in favor of the appellant.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121233 (ITAT-DELHI)
• Duration Of Justice: 6 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 23-07-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2017
• Other Referred Cases: ITA No. 614/Del/2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 3484/Del/2017: Asstt. Year: 2012-13 M/s. U. P. Dyeing & Printing Works, C/o. M/s. Malik & Co. (Adv.), 305/7, Thapar Nagar, Meerut City VS. Income Tax Officer, Ward-2(4), Meerut (APPELLANT) (RESPONDENT) PAN No. AAAFU2202L Assessee by : Sh. Sanjay Malik, Adv. Revenue by : Sh. Anuj Garg, Sr. DR Date of Hearing: 24.07.2023 Date of Pronouncement: 25.07.2023 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld CIT(A), Meerut dated 22.03.2017 passed by the AO u/s 143(3) of the Income Tax Act, 1961. Disallowances of expenses of Rs. 13,62,813/-: 2. Brief facts of the case are that the assessee firm is carrying on the business of printing of handloom cloths and paid an amount of Rs. 13,62,813/- to various printers who were engaged for the job work of printing. Before the AO the assessee filed details of quantity printed, rate and amount. The Revenue disallowed the expenses holding them to be bogus in nature. ITA No. 3484/Del/2017 M/s. U. P. Dyeing & Printing Works 2 3. On going through the record, we find that no reasons have been given by the revenue authorities as to how these expenses are considered as bogus. We hold that no disallowance is called for without bringing any cogent material on record about the non allowability of the expenses. In the result, appeal of the assessee on this ground is allowed. Sundry Creditors-Rs. 6,05,633/-: 4. The amount of Rs. 6,05,633/- has been disallowed by the revenue authorities on the ground that the goods from these parties were in transit and have not been accounted in the books of accounts. The AO not disputed the purchases from the said parties and accepted the trading results. The similar issue has also been matter of adjudication before the Tribunal in ITA No. 614/Del/2015 in the case of the assessee for AY 2010-11. Since, the issue is on the similar ground, we hold that no addition is called for treating the sundry creditors pertaining to the undisputed purchase of the year. Appeal of the assessee on this ground is allowed. 5. In the result, appeal of the assessee is allowed. Order Pronounced in the Open Court on 25/07/2023. Sd/- Sd/- (Yogesh Kumar US) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 25/07/2023 *Ajay Kumar Keot, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR