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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपील सं./ (िनधा1रण वष1 / Assessment Year: 2013-14) Surya Oils and Extractions Pvt. Ltd. ITO बनाम/ 25 Salem Main Road, Corporate Ward-6(3), Vs. Kallakurichi – 606 202. Chennai. �थायी लेखा सं./जीआइ आर सं./PAN/GIR No. AABCS-5017-R (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ� की ओरसे/ Appellant by : None ��थ� की ओरसे/Respondent by : Mrs. Jothi Lakshmi Nayak (CIT) – Ld. DR सुनवाई की तारीख/Date of Hearing : 30-03-2023 घोषणा की तारीख /Date of Pronouncement : 30-03-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 15-02-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 16-03-2016. In this appeal, the assessee is aggrieved by confirmation of certain additions. The assessee being resident corporate assessee is stated to be engaged in manufacturing of edible oils. None has appeared for 2 - assessee and accordingly, the appeal is decided with the able assistance of Ld. CIT-DR.
The sole grievance of the assessee is disallowance of gunny bag stitching expenses, freight outward expenses and water expenses aggregating to Rs.59.07 Lacs. In support, the assessee produced self made vouchers which were not accepted by Ld. AO. Since the payment was made in cash, Ld. AO termed the same as bogus and disallowed the same. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.
We find that the assessee is a corporate entity and bound to incur impugned expenditure during the course of its business. Merely because the payment was in cash, the expenditure could not be held to be bogus without bringing on record any evidence to support the same. The assessee produced vouchers in support of the expenditure. There is no fact based finding that there is reduction in overall profit of the assessee. Therefore, we estimate the disallowance at 10% and deleted the balance addition.
The appeal stand partly allowed. Order pronounced on 30th March, 2023.