SHREE RAM MININGS,NAVSARI V. ITO WARD-5, NAVSARI

ITA 854/SRT/2025

AI Insights

The case involves Shree Ram Minings, a partnership firm engaged in business, which appealed against the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi. The dispute centered on the disallowance of Rs.58,69,491 by the Assessing Officer, which pertained to compression and blasting expenses claimed by the assessee for the Assessment Year 2018-19. The expenses were disallowed on the grounds that they pertained to an earlier year, although the payment was made during the year under consideration. The tribunal examined the details and evidence provided by the assessee, including tax deducted at source on the expenses, and concluded that the expenses were legitimate business expenditures for the year in question.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831755 (ITAT-SURAT)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 13-08-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: RASESH SHAH

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.854/Srt/2025 (Assessment Year: 2018-19) Shree Ram Minings, Jamanpada Navsari, Navsari-396040. [PAN : ACRFS4648B] Vs. Income Tax Officer, Ward-5, Navsari. (Appellant) .. (Respondent) Appellant by : Shri Rasesh Shah, AR Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 21.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order dated 10.06.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“the CIT(A) in short), under Section 250 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2018-19. 2. The assessee is a partnership firm carrying on business in the name and style of Shree Ram Minings and derives income from business. The assessee filed its return of income for Assessment Year 2018-19 declaring a loss of Rs.3,492/- and maintains its books of account under the mercantile system of accounting. During the course of assessment proceedings, the Assessing Officer disallowed an amount of Rs.58,69,491/- on account of compression and blasting expenses on the ground that the expenses pertained to an earlier year, though payment was made during the year under consideration. Before us, the assessee furnished complete details of the blasting expenses along with evidence of tax deducted at source thereon. Since the expenses were incurred wholly and exclusively for the purposes of business and liability had crystallized during the relevant previous year, merely because the payment was made Printed from counselvise.com ITA No.854/Srt/2025 Asst. Year : 2018-19 - 2– in the subsequent year, no disallowance is warranted. The details of the expenses incurred are reproduced as under: 3. We have carefully examined the records and, in view of the details furnished regarding the blasting expenses incurred by the assessee, we hold that no addition is called for on this account. 4. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 23.01.2026. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Surat; Dated 23.01.2026 **mv Printed from counselvise.com ITA No.854/Srt/2025 Asst. Year : 2018-19 - 3– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ ) अपील ( / The CIT(A)- 5. िवभागीय Ůितिनिध , आयकर अपीलीय अिधकरण , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat 1. Date of dictation …words processed by Hon’ble VP on his PC on 17.10.2025……………. 2. Date on which the typed draft is placed before the Dictating Member …03.11.2025…………. 3. Other Member ……06.11.2025………. 4. The date on which the file goes to the Assistant Registrar for signature on the order 5. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "