M/s. Andhra Pradesh Tanneries Ltd., Visakhapatnam V. The DCIT, Visakhapatnam

ITA 501/VIZ/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3834 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 19-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVASA RAO
• Keywords: Additional evidence; Set aside

Judgement Text

ITA NO.501 /VIZAG/2016 M/S. ANDHRA PRADESH TANNERIES LTD., VIZIANAGARAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . .. . . . . . ' , % BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./I.T.A.NO.501/VIZAG/2016 ( / ASSESSMENT YEAR:2008-09) M/S. ANDHRA PRADESH TANNERIES LTD., VIZIANAGARAM DCIT, CIRCLE - 3(1), VISAKHAPATNAM ( ' / APPELLANT) ( ()' / RESPONDENT) / APPELLANT BY : SHRI Y.A. RAO, AR / RESPONDENT BY : SHRI V. SRINIVASA RAO, DR / DATE OF HEARING : 12.03.2018 / DATE OF PRONOUNCEMENT : 0 6.04.2018 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST ORDER OF THE CIT(A)-1, VISAKHAPATNAM VIDE ITA NO.90/2010-11/DC,C -3(1),VSP/2016- 17 DATED 3.10.2016 FOR THE ASSESSMENT YEAR 2008-09. 2. WHEN THIS APPEAL IS TAKEN UP FOR HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. CIT(A) HAS DISA LLOWED TO THE TUNE OF ITA NO.501 /VIZAG/2016 M/S. ANDHRA PRADESH TANNERIES LTD., VIZIANAGARAM 2 ` 30 LAKHS OUT OF ` 59,99,248/- CLAIMED AS AN EXPENDITURE TOWARDS SALARIES ON THE GROUND THAT NO DETAILS WERE FILED. IT IS SUBMITTED THAT THE ASSESSEE COMPANY IS IN A HUGE FINANCIAL LOSS AN D DUE TO NON- AVAILABILITY OF SUPPORTING STAFF, ASSESSEE WAS NOT ABLE TO FILE THE DETAILS. NOW THE ASSESSEE HAS FILED ALL THE DETAILS AND ALSO FILED AN APPLICATION UNDER RULE 29 OF THE INCOME TAX APPELLATE RULES, 19 63 AND THE DETAILS FILED BY THE ASSESSEE MAY BE ADMITTED AND REQUESTED THAT THE ISSUE MAY BE REMITTED BACK TO THE FILE OF THE A.O. TO CONSIDE R AFRESH IN ACCORDANCE WITH LAW. 3. ON THE OTHER HAND, THE LD. D.R. STRONGLY OPPOSED THAT AT THIS STAGE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE CAN NOT BE ADMITTED. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS DISALLOWANCE OF SALARY EXPENDITURE CLAIMED BY THE ASSESSEE. THE ASSESSEE HAS CLAIMED AN AMOUNT OF ` 59,99,248/- AS SALARIES PAID TO THE EMPLOYEES. THE ASSESSEE IS NOT ABLE TO FURNISH RELEVANT VOUCHERS AND SUPPORTIVE EVIDENC E BEFORE THE AUTHORITIES BELOW. THEREFORE, THE CIT(A) HAS DISAL LOWED TO THE TUNE OF ` 30 LAKHS AND DIRECTED THE A.O. TO ALLOW REMAINING P ART. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE BY CONSIDERING THE EXPLANATION GIVEN ITA NO.501 /VIZAG/2016 M/S. ANDHRA PRADESH TANNERIES LTD., VIZIANAGARAM 3 BY THE ASSESSEE, WE ARE OF THE OPINION THAT THE ADD ITIONAL EVIDENCE FILED BY THE ASSESSEE IN THIS REGARD HAS TO BE EXAMINED A ND THE ISSUE HAS TO BE DECIDED AS PER THE MERITS OF THE CASE. ACCORDIN GLY, WE ADMIT THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE. IN VIEW OF THE ABOVE, THE ORDER PASSED BY THE LD. CIT(A) IS SET ASIDE AND REM ITTED MATTER BACK TO THE FILE OF THE A.O. TO CONSIDER THE EVIDENCE IN RE SPECT OF SALARY PAYMENTS AND PASS ORDERS IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 6 TH APR18. SD/- SD/- ( . .. . . . . . ' ) ( . ) (D.S. SUNDER SINGH) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER # /VISAKHAPATNAM: ' /DATED : 06.04.2018 VG/SPS )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT M/S. ROWE & PAL, CHARTERED ACCOU NTANTS, 14-36-1, KRISHNA NAGAR, VISAKHAPATNAM 2. / THE RESPONDENT THE DCIT, CIRCLE-3(1), VISAKHAP ATNAM 3. + / THE PRINCIPAL CIT-1, VISAKHAPATNAM ITA NO.501 /VIZAG/2016 M/S. ANDHRA PRADESH TANNERIES LTD., VIZIANAGARAM 4 4. + ( ) / THE CIT (A)-1, VISAKHAPATNAM 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM