VIPUL VINAYAK SURVE, Pune V. Deputy Commissioner of Income Tax,Circle-7, Pune, Pune

ITA 886/PUN/2022

AI Insights

The case involves an appeal by Vipul Vinayak Surve against the order of the National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income Tax Act, 1961. The appeal was directed against the assessment order passed by the Assistant Commissioner of Income Tax, Circle-7, Pune, which disallowed a cash payment of \\u20b983,34,900. The appellant argued that the cash payments were recorded based on a monthly pay-sheet and that each payment was below the statutory limit prescribed under section 40(A)(3) of the Act. Both the lower tax authorities and the Departmental Representative did not contest the remanding of the matter for verification of the payments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136276 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 07-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 250

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S. S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No. 886/PUN/2022 निर्धारण वर्ा / Assessment Year : 2017-18 Vipul Vinayak Surve S. No. 191, Nagpur Chawl, Yerawada, Pune-411006. PAN: BPDPS3700L . . . . . . . अपऩलधथी / Appellant बनाम / V/s Asstt. Commissioner of Income Tax, Circle-7, Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri M. R. Bhagwat Revenue by : Shri M. G. Jasnani सपिवधई की तधरऩख / Date of conclusive Hearing : 12/04/2023 घोर्णध की तधरऩख / Date of Pronouncement : 12/04/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; This appeal of the assessee for the assessment year [for short “AY”] 2017-18 is directed against the order of National Faceless Appeal Centre, Delhi [for short “CIT(A) / NFAC”] dt. 10/10/2022 passed u/s 250 of the Income- tax Act,1961 [for short “the Act”], which rose out of assessment order dt. 27/11/2019 passed u/s 143(3) by Asstt. CIT Circle-7, Pune [for short “AO”]. Vipul Vinayak Surve ITA No. 886/PUN/2022 A.Y. 2017-18 ITAT-Pune Page 2 of 3 2. During the course of physical hearing the Ld. AR for the appellant adverting to the impugned orders submitted that, both the lower tax authorities erred in disallowing the cash payment of ₹83,34,900/- without first appreciating the fact that the said cash payment claimed in the books of account are recorded on the basis of monthly pay-sheet maintained by the assessee as against the individual payment. The Ld. AR in support of his request for remanding the matter back for verification of payments, has further stated that, the appellant is engaged in providing man-power services in relation to small repair & maintenance and housekeeping services etc., wherefore the monthly wage / salary payment to each of such labour / employee hired / employed by the assessee are individually far below the statutory limit prescribed u/s 40(A)(3) of the Act and this factual position can be very well verified from the vouchers maintained. The Ld. DR without controverting fact has expressed his no-objection for de-nova verification of subject in the light of vouchers (if any) maintained by the appellant. Vipul Vinayak Surve ITA No. 886/PUN/2022 A.Y. 2017-18 ITAT-Pune Page 3 of 3 3. After hearing to rival contentions and perusing the material placed on record in terms of rule 18 of ITAT, Rules 1963; we find force in the request of Ld. AR in remanding this limited issue back to the file of Ld. AO for de-nova verification of impugned cash payment in the light of provisions of section 40(A)(3) of the Act and decided the same a fresh after providing three effective hearings to the assessee for adducing necessary evidential documents in support of his claim. Thus, we order accordingly. 4. In result, the appeal of the assessee is ALLOWED FOR STATISTCIAL PURPOSE in aforestated terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Wednesday 12 th day of April, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 13 th day of April, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT -1 (MH-India) 4. The CIT(A)-NFAC, Delhi (India) 5. DR, ITAT, Pune Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.