NEHA HERBALS PVT. LTD.,DELHI V. ITO WARD 18(1), DELHI

ITA 942/DEL/2024

AI Insights

Neha Herbals Pvt. Ltd. appealed against the order of the CIT(Appeals)-28, New Delhi, which sustained the disallowance of Rs. 10 lakhs from the expenses debited to the profit and loss account for the assessment year 2015-16. The disallowance was initially made by the Assessing Officer on an ad hoc basis due to some vouchers and bills being 'not in order' or 'self-made'. The tribunal admitted the appeal despite a delay of 640 days, finding sufficient cause for the delay. Upon reviewing the merits, the tribunal noted the lack of specific instances of defects in the documents cited by the Assessing Officer, leading to the decision to delete the disallowance.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312966 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PARKASH
• Assessee Lawyers: RAKESH JAIN
• Keywords: Condonation of delay; Corroborative evidences

Judgement Text

"I.T.A.No.942/Del/2024 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं/.I.T.A No.942/Del/2024 िनधा रणवष /Assessment Year: 2015-16 Neha Herbals Pvt. Ltd., 76-SSI, CO OP INDUSTRIAL ESTATE, GT KARNAL ROAD, DELHI. बनाम Vs. Income Tax Officer, Ward-18(1), C.R. Building, I.P. Estate, New Delhi. PAN No.AACCN6466E अपीलाथ\u0012 Appellant \u0014\u0015यथ\u0012/Respondent िनधा\u0007\bरतीक ओरसे /Assessee by Shri Rakesh Jain, Adv. राज\u0012वक ओरसे /Revenue by Shri Om Parkash, Sr. DR सुनवाईक तारीख/ Date of hearing: 25.04.2025 उ\u0018ोषणाक तारीख/Pronouncement on 30.04.2025 आदेश /O R D E R This appeal is filed by the Assessee against the order of the Ld. CIT(Appeals)-28, New Delhi dated 25.03.2022 for the AY 2015-16 in sustaining the disallowance of Rs.10 lakhs out of expenses debited to profit and loss account on ad hoc basis. This appeal is filed with a delay of 640 days and the assessee has furnished petition along with affidavit explaining the reasons for delay as under: - “1. The enclosed appeal emerges from the order u/s 250 dt. 25.03.2022 related to AY 2015-16. I.T.A.No.942/Del/2024 2 2. That Ld. CIT(A)-28, Delhi passed the order on dt. 25.03.2022 hereby dismissing assessee's appeal. 3. Assessee received the Ld. CIT(A)-28, Delhi order u/s 250 on dt. 25.03.2022. So, in our appeal, the limitation of filing appeal expired on dt. 24.05.2022. Thus, there is a delay of 647 days in filing of the said appeal, calculated from dt.24.05.2022 which is being prayed for condonation of delay for the reason extracted hereunder and substantiated through the affidavit of assessee at Page. 4. The CA Tarun Kumar Gupta had carefully kept the papers in file for filing an appeal before IT AT. Wherein, he forgot to file the same in ITAT on time for challenging the same for appeal proceedings. 5. The aforesaid inaction for the pendency of appeal not having been filed came to knowledge on dt. 22.02.2024 when penalty notice was received. At that time, it was revealed that the appeal challenging the order dt. 25.03.2022 has not been filed and whereupon the case papers namely the impugned order had been given to the Ld. Consultant for preparation and filing of appeal. 6. On dt 22.02.2024 onward again the efforts were undertaken to file the appeal and the case papers were traced by the counsel for preparing and filing the appeal in this Hon'ble ITAT. 7. The humble prayer is that the aforesaid delay is unintentional and inadvertent mistake and this is the cause wherein, the humble pleading is for condoning the delay attributable to the aforesaid reasons as the assessee would suffer since even there is a case prima facie wherein assessee is likely to succeed on the interpretation of the principles of law in the interest of justice. Thus under the aforesaid facts and circumstances and nature of case, the humble prayer is for condoning the delay and granting the opportunity for hearing the case in I.T.A.No.942/Del/2024 3 the interest of substantial justice for decision in accordance with law.” On hearing both the sides and perusing the reasons for delay in filing the appeal it is found that assessee has sufficient cause in filing the appeal with delay. Therefore, the same is condoned and appeal is admitted. 2. Coming to the merits of the case briefly stated the facts are that while completing assessment the Assessing Officer required the assessee to produce supporting evidences, vouchers, bills, etc. in respect of expenses debited to profit and loss account under the head “other expenses”. On verification of the vouchers, bills, etc. on check test basis the Assessing Officer observed that few vouchers and bills pertaining to these expenses were not in order. It is observed by the Assessing Officer that some of the vouchers are self made and not verifiable, therefore, the Assessing Officer disallowed Rs.10 lakhs on ad hoc basis from out of the expenses debited to profit and loss account under the head “other expenses”. 3. On appeal the Ld. CIT(Appeals) sustained the ad hoc disallowance made by the Assessing Officer. Perusal of the assessment order shows that the Assessing Officer did not point out any specific voucher and bill where there are defects found by him. Therefore, in the absence of any specific instance pointed out by I.T.A.No.942/Del/2024 4 the Assessing Officer there cannot be any ad hoc disallowance in general. Thus, the disallowance made by the Assessing Officer is hereby deleted. 4. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 30/04/2025 Sd/- (C.N. PRASAD) JUDICIAL MEMBER Dated: 30.04.2025 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "