SRI RAGHUNATH JI & SONS,DELHI V. ITO WARD-47(1), DELHI

ITA 4053/DEL/2025

AI Insights

The case involves M/s. Sri Raghunath Ji & Sons appealing against the order of the National Faceless Appeal Centre (NFAC), which upheld the disallowance of additional sales tax and a partner's salary by the Income Tax Officer (ITO), Ward-47(1), New Delhi. The additional sales tax of \\u20b927,639 paid on 01.08.2013 for the Accounting Year 2011-12 was disallowed due to lack of verification. Similarly, the partner's salary of \\u20b92,90,790 was disallowed because the partnership deed did not initially show the name of the incoming partner, Mr. Kunal Bhatia. The Tribunal found that the partnership deed, which included Mr. Bhatia's name, was not presented to the lower authorities and thus restored both issues to the AO for further verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772517 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: K. R. MANJANI
• Section: 143(3); 43B

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No. 4053/Del/2025 (Assessment Year: 2014-15) M/s. Sri Raghunath Ji & Sons, 2046, Katra Tobacco, Khari Baoli, Delhi Vs. ITO, Ward-47(1), New Delhi PAN: ABPFS2204G Assessee by : Shri K. R. Manjani, Adv Shri Tarun Aswani, Adv Revenue by: Shri Manoj Kumar, Sr. DR Date of Hearing 12/08/2025 Date of pronouncement 27/08/2025 O R D E R 1. The appeal in ITA No.4053/Del/2025 for AY 2014-15 arises out of the order of the ld. National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] in Appeal No. ITBA/NFAC/S/250/2025- 26/1076768375(1) dated 06.06.2025 against the order of assessment passed u/s 143(3) r.w.s. 254 of the Income-tax Act, 1961 dated 27.09.2021 (hereinafter referred to as ‘the Act’) by ITO, Ward-47 (1), New Delhi (hereinafter referred to as ‘ld. AO’). 2. Ground No. 1 (i) raised by the assessee is challenging the disallowance of additional sales tax of ₹27,639/- paid by the assessee on 01.08.2013. 3. I have heard the rival submissions and perused the material available on record. The assessee is the salesman and had paid additional sales tax (Central Sales Tax) on 01.08.2013 in the sum of ₹27,639/- pertaining to Accounting Year 2011–12. This matter requires factual verification by the ld AO. Hence I deem it fit and appropriate to restore this matter to the file of the ld AO with the direction that if the sum of ₹27639/- was proved to have Printed from counselvise.com ITA No. 4053/Del/2025 M/s. Sri Rahunath JI & Sons Page | 2 been paid on 01.08.2013 on account of additional Sales tax, the same would be allowable as deduction u/s 43B of the Act. On the contrary, if the same is found not to have paid, it shall be disallowed. Accordingly Ground No. 1(i) raised by the assessee is allowed for statistical purposes. 4. Ground No. 1(ii) raised by the assessee is challenging the disallowance of partner’s salary of ₹2,90,790/- on the ground of partnership deed not been given by the assessee before the ld AO. 5. I have heard the rival submissions and perused the material available on record. The ld AO noted that the partnership deed submitted by the assessee did not contain the name of incoming partner Mr. Kunal Bhatia. Accordingly, the partner’s remuneration claimed as deduction in the sum of ₹2,90,709/- was sought to be disallowed by the ld AO which stood upheld by the ld NFAC. The ld AR before us placed on record one partnership deed dated 12.04.2010 wherein name of Mr. Kunal Bhatia is shown as partner by the assessee firm. This deed is duly signed by all the parties and duly witnessed. It appears that the said document is not placed before the lower authorities and hence, in the interest of justice and fairplay, I deem it appropriate to restore this matter to the file of ld AO for factual verification. Accordingly, Ground No. 1(ii) raised by the assessee is restored to the file of the ld AO and allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27/08/2025. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 27/08/2025 A K Keot Printed from counselvise.com ITA No. 4053/Del/2025 M/s. Sri Rahunath JI & Sons Page | 3 Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "