SHREE PRITHVI STEEL ROLLING MILLS PRIVATE LIMITED,JAIPUR V. DY. CIT, CIRCLE-04, JAIPUR, JAIPUR

ITA 1359/JPR/2024

AI Insights

The case involves Shree Prithvi Steel Rolling Mills Private Limited, which appealed against the order of the Learned CIT(A), NFAC, Delhi, concerning the assessment year 2012-13. The primary issue was the addition of Rs. 7,49,610 to the appellant's income, which was disallowed under Section 40A(3) of the Income Tax Act, 1961, due to non-compliance with the statutory provisions regarding cash payments to transporters. The tribunal noted the appellant's non-compliance with several notices and decided to remit the case back to the CIT(A) for a fresh decision, emphasizing the need for the appellant to be given another opportunity to present their case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35296 (ITAT-JAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANITA RINES H
• Assessee Lawyers: UTKARSH SHARMA
• Keywords: Non compliance
• Section: 147; 250; 40A(3)

Judgement Text

"vk;dj vihyh; vf/kdj.k] t;iqj U;k;ihB] t;iqj IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES,”A-Bench” JAIPUR Jh xxu xks;y] ys[kk lnL; ,oa Jh ujsUnz dqekj] U;kf;d lnL; ds le{k BEFORE: SHRI GAGAN GOYAL, AM& SHRI NARINDER KUMAR, JM vk;dj vihy la-@ITA No. 1359/JPR/2024 fu/kZkj.ko\"kZ@Assessment Year : 2012-13 Shree Prithvi Steel Rolling Mills Private Limited. B-230/A, Road No. 9, VKI Area, Jaipur. cuke v. Dy. CIT, Circle-4, Jaipur. LFkk;hys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAGCS6809Q vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@Assessee by : Shri Utkarsh Sharma, Adv. jktLo dh vksj ls@Revenue by: Mrs. Anita Rinesh, JCIT) lquokbZ dh rkjh[k@Date of Hearing :29/01/2025 mn?kks\"k.kk dh rkjh[k@Date of Pronouncement: 06/02/2025 vkns'k@ORDER PER: NARINDER KUMAR, JUDICIAL MEMBER . By way of present appeal, the assessee-appellant has challenged order dated 20.09.2024, passed by Learned CIT(A), NFAC, Delhi, relating to the assessment year 2012-13. Vide impugned order,u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), Learned CIT(A) has dismissed the appeal filed by the assessee, while observing that the appellant, during the 2 ITA No. 1359/JPR/2024 Shri Prithvi Steel Rolling Mills Pvt. Ltd. vs. DCIT appeal proceedings, remained non compliant, and further that he was constrained to be in agreement with the findings recorded by the Assessing officer, as regards addition of Rs. 7,49,610/- made while resorting to provisions of Section 40A(3) of the Act. 2. The assessment order was passed on 17.12.2019 u/s 147 r.w.s. 143(3) of the Act, on the ground that the assessee had failed to comply with the statutory provisions of section 40A(3) of the Act, and as such,the payments made by the assessee companyto transporter, to the tune of Rs. 7,49,610/- were disallowable. 3. Arguments heard. File perused. 4. Admittedly, assessment order came to be passed, while making addition of Rs. 7,49,610/-, to the returned income of Rs. 2,76,31,880/-, relating to the assessment year 2012-13. The Assessing Officer took into consideration 14 cash payments, as available from the cash book furnished by the assessee, and relating to transport. He found that various payments made in case of transporter were found to have exceeded the limit prescribed as per Section 40A(3) of the Act i.e. the limit of Rs. 35,000/-. Said 14 payments find mentioned in para 3 of the assessment order. Same are not being reproduced, as we 3 ITA No. 1359/JPR/2024 Shri Prithvi Steel Rolling Mills Pvt. Ltd. vs. DCIT find that the impugned order passed by Learned CIT(A), NFAC has not been passed on merits, or after discussing the claim of the appellant. 5. Ld. DR for the Department has pointed out that several notices were issued by NFAC to the appellant, but there was no response from his side. At the same time, Learned DR has not objected to remitting of the appeal to Learned CIT(A) for decision afresh. 6. File reveals that 4 notices were issued by NFAC to the assessee- appellant i.e. on 29.12.2020, 11.02.2022, 9.07.2024 and 25.07.2024. The appellant remained non- compliant as regards notice dated 29.12.2020 and 25.07.2024. As regards other two notices, on his behalf adjournment was sought. 7. It is true that the assessee did not participate in the proceedings in reply to notice dated 29.12.2020 issued for 13.01.2021 and notice dated 25.07.2024 issued for 30.07.2024, but at the same time, prayer has been submitted that another opportunity be afforded to the appellant to participate in the appeal proceedings before Learned CIT(A), NFAC. Having regard to the issue involved, we deem it a fit case to remit the matter to Learned CIT(A), NFAC for decision afresh, after providing an opportunity to the assessee-appellant of being heard. 4 ITA No. 1359/JPR/2024 Shri Prithvi Steel Rolling Mills Pvt. Ltd. vs. DCIT Keeping in view the attitude of the appellant, in being non responsive to the two notices dated 29.12.2020 and 25.07.2024 we deem it just to burden the appellant with costs of Rs. 2000/-. Accordingly, we direct the appellant to deposit costs in “Prime Minister’s National Relief Fund” and produce the receipt before Learned CIT(A) before commencement of the proceedings by way of remand. Result 8. So as to provide another opportunity to the assessee-appellant in the appellate proceeding before the Learned CIT(A), NFAC, this appeal is disposed of for statistical purposes, and the matter is remitted to Learned CIT(A) for decision afresh. The assessee-appellant to participate in the proceedings before Ld. CIT(A) as and when directed to do so. File be consigned to the record room after the needful is done by the office. Order pronounced in the open court on 06/02/2025. Sd/- Sd/- ¼xxu xks;y½ ¼ujsUnz dqekj½ (GAGAN GOYAL) (NARINDER KUMAR) ys[kk lnL; @Accountant Member U;kf;d lnL;@Judicial Member Tk;iqj@Jaipur fnukad@Dated:- 06/02/2025 *Santosh vkns'k dh izfrfyfi vxzsf’kr@Copy of the order forwarded to: 5 ITA No. 1359/JPR/2024 Shri Prithvi Steel Rolling Mills Pvt. Ltd. vs. DCIT 1. The Appellant- Shree Prithvi Steel Rolling Mills Pvt. Ltd., Jaipur. 2. izR;FkhZ@ The Respondent- DCIT, Circle-4, Jaipur. 3. vk;dj vk;qDr@ The ld CIT 4. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur 5. xkMZ QkbZy@ Guard File ITA No. 1359/JPR/2024) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asstt. Registrar "