VISHWAKARMA SUVARNAKAR SA HAKARI PATSANSTHA LTD KOLHAPPUR, KOLHAPUR V. ITO, WARD 1(1), KOLHAPUR

ITA 496/PUN/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6407 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 13-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bad and doubtful debts
• Section: 28; 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER I.T.A.No.496/PUN./2024 [E-APPEAL] Assessment Year 2018-2019 Vishwakarma Suvarnakar Sahakari Patsanstha Ltd., 147, C-Ward, Vishwakarma Bhavan, Bhende Galli, Mahadwar Road, KOLHAPUR - 416 002. Maharashtra. PAN AAAAV0231B vs. The Income Tax Officer, Ward-1(1), Indumati Road, Tarabai Park, KOLHAPUR – 416 003. Maharashtra. (Appellant) (Respondent) For Assessee : -None- For Revenue : Shri Sourabh Nayak, Addl. CIT Date of Hearing : 20.06.2024 Date of Pronouncement : 20.06.2024 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal for assessment year 2018-19, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/ 2023-24/1060907326(1), dated 14.02.2024, in proceedings u/s.143(3) of the Income Tax Act, 1961 (in short “the Act”). Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex-parte. 2. The assessee pleads the following substantive grounds in the instant appeal : 2 ITA.No.496/PUN./2024 1. “On the facts and circumstances of the case and in law the CIT(A), NFAC erred in confirming the disallowance of deduction u/s.80P in respect of the following additions made by the AO to it’s business income, ignoring the instructions in CBDT Circular No.37/2016 dated 02.11.2016. Sr.No. Provisions/Expenses Amount (Rs.) 1. Disallowance of expenses under section 40(a)(ia) 3,252 2. Income chargeable under section 28 1,12,461 3. Income tax paid under section 40a 13,990 4. Provision for Bad Debts 2,20,296 TOTAL 3,49,999 The appellant craves leave to add to, amend, alter, delete or modify all or any of the above ground of appeal or raise a new ground of appeal before or at the time of hearing.” 3. We next note that the NFAC’s impugned lower appellate discussion affirming the assessment findings disallowing the foregoing heads read as under : 3 ITA.No.496/PUN./2024 4. Learned DR could hardly dispute the fact that the NFAC’s lower appellate discussion has already treated the assessee as eligible for sec.80P deduction. That being the clinching case, we find force in the assessee’s sole substantive ground raised herein placing reliance on the CBDT’s circular no.27/2016 that such disallowance(s) as the one in hand before us lead to increases the quantum of regular business income itself; which in turn has already eligible for deduction. Faced with the situation, we accept the assessee’s instant sole substantive grievance in very terms. Necessary computation shall follow as per law. 5. This assessee’s appeal is allowed in above terms. 4 ITA.No.496/PUN./2024 Order pronounced in the open Court on 20.06.2024. Sd/- Sd/- [INTURI RAMA RAO] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 20 th June, 2024 VBP/- Copy to 1. The appellant 2. The respondent 3. The Pr. CIT, Pune concerned 4. D.R. ITAT, “B” Bench, Pune. 5. Guard File. //By Order// //True Copy // Sr. Private Secretary, ITAT, Pune Benches, Pune.