The Deputy Commissioner of Income Tax, Circle-3(1), Visakhaptnam V. Radhika Vegetable Oils Private Limited, Vizianagaram

ITA 80/VIZ/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7538 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 16-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus
• Section: 143(3); 142(1); 143(2); 139(1)

Judgement Text

1 आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.80/Viz/2020 (ननधधारण वषा / Assessment Year: 2015-16) DCIT, Circle-3(1), Visakhapatnam. Vs. M/s. Radhika Vegetable Oils Private Limited, Vizianagaram. PAN: AAACR 8333 C (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Assessee by : No Representation प्रत्यधथी की ओर से / Revenue by : Sri MN Murthy Naik, CIT-DR स ु नवधई की तधरीख / Date of Hearing : 18/05/2022 घोषणध की तधरीख/Date of Pronouncement : 14/06/2022 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal filed by the Revenue against the order of the Ld. CIT(A)- 1, Visakhapatnam in appeal No.10242/2017-18/CIT(A)-1/VSP/2019-20, dated 11/11/2019 passed U/s. 143(3) r.w.s 250(6) of the Act for the AY 2015-16. 2 2. Brief facts of the case are that the assessee-company is engaged in the business of manufacturing of vegetable oils filed its return of income for the AY 2015-16 admitting a loss of Rs. 1,92,59,921/-. The case was selected for scrutiny and the statutory notices U/s. 143(2) and 142(1) were served on the assessee. The Assessing Officer completed the assessment by disallowing the following expenses: a) Disallowance of purchase expenses, loading & unloading And bunching handling charges Rs. 2,97,14,847 b) Disallowance of General Expenses & Telephone Expenses Rs. 1,80,033 c) Disallowance of salaries & Wages Rs. 4,76,717 d) Disallowance of belated payments to PF & ESI Rs. 95,708 3. Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A)-1, Visakhapatnam. The Ld. CIT(A) considered the submissions made by the assessee’s representative partly and allowed the appeals of the assessee. Aggrieved by the order of the Ld. CIT (A), the assessee is in appeal before us. 4. None represented for the assessee and therefore the case shall be adjudicated on the basis of the material available on record. 5. The Ld. DR argued that the assessee has bogus purchases and contract expenses and relied on the order of the Ld. AO. 3 6. We have considered the rival submissions made by the Ld. DR and the material available on record. We find from the order of the Ld. CIT(A) that Hon’ble ITAT in the assessee’s own case for the AY 2013-14 and 2014-15 in ITA Nos. 474 & 475/Viz/2018 vide order dated 30/04/2019 has allowed the disallowance of 30% as against 80% made by the Assessing Officer with respect to purchase expenses, loading and unloading and bunching and handling charges. The Ld. CIT(A) has rightly followed the decision of the Tribunal (supra) in the appellant’s own case and therefore we find no infirmity in the order of the Ld. CIT(A) and hence no interference is required. 7. Similarly, in the addition of general expenses and telephone expenses, the Ld. the Ld. CIT (A) has granted relief by reducing disallowance from 20% to 10% we are of the view that the disallowance made by the Ld. CIT(A) is reasonable and we find no infirmity in the order of the Ld. CIT(A) and no interference is required. 8. With respect to disallowance of salaries and wages, the Ld. CIT(A) concluded that the AO has made disallowance without any basis and it deserves to be deleted. We note that the assessee has maintained certain statutory registers in compliance with the PF & ESI Act from the order of the Ld. CIT(A) and hence we are of the view that no interference is required with respect to addition of salaries. 4 9. With respect to belated payment of PF & ESI, various High Courts and Hon’ble Tribunal has consistently held that no disallowance shall be warranted if the contribution to PF & ESI was paid on or before the due date of filing of return U/s. 139(1) of the Act. The assessee has relied on the decision of the Eastern Distribution Company Limited of Andhra Pradesh wherein the ITAT, Visakhapatnam Bench held that no disallowance can be made towards contribution to PF & ESI if it is paid on or before the due date of filing of return U/s. 139(1) of the Act. Respectfully following the precedents, we find no infirmity in the order of the Ld. CIT (A) and no interference is required on this ground. 10. Grounds No.1 and 6 are general in nature and needs no adjudication. 11. In the result, appeal of the Revenue is dismissed. Pronounced in the open Court on the 14 th June, 2022. Sd/- Sd/- (द ु व्ि ू रु आर.एऱ रेड्डी) (एस बाऱाक ृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 14.06.2022 OKK - SPS 5 आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee – M/s. Radhika Vegetable Oils Private Limited, Shreeram Nagar, Garividi, Vizianagaram, Andhra Pradesh- 535101. 2. रधजस्व/The Revenue – DCIT, Circle-3(1), Income Tax Officer, Infinity Tower, Shankaramatham Road, Santhipuram, Visakhapatnam, Andhra Pradesh-530016. 3. The Principal Commissioner of Income Tax-1, Visakhapatnam. 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals)-1, Visakhapatnam. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam