BUILDMATE PROJECTS PRIVATE LIMITED ,HYDERABAD vs. INCOME TAX OFFICER, WARD-1(3), HYDERABAD

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘B’ BENCH : Hyderabad

Before Smt. P. Madhavi Devi, Judicial Member And Shri Mohan Alankamony, Accountant Member

ITA No. 266/Hyd./2019 Assessment Year: 2015-16 Buildmate Projects P. Ltd. vs. ITO, Ward 1(3) Sy.No.60-62, Gundlapochampally Hyderabad Village Medchel, R.R. Dist. Hyderabad 14 (Appellant) (Respondent)

For Assesse: Sh. Samuel Nagadesi, A.R. For Revenue: Sh. Nilanjan Dey, D.R.

Date of Hearing : 19/09/19 Date of Pronouncement : 27/09/19 O R D E R Per Smt. P. Madhavi Devi, J.M. This is assessee’s appeal for A.Y. 2015-16 against order of CIT(A)-1, Hyderabad dated 22.01.2019. 2. Brief facts of the case are that the assessee company, engaged in the business of manufacturing of cement blocks, filed its return of income for the A.Y. 2015-16 originally on 30.9.2015 admitting income of Rs.2,57,75,938/-. Later, the assessee filed its revised return of income on 18.4.2016 admitting the same income. The assessee’s case was selected for scrutiny through CASS and during the assessment proceedings u/s 143(3) of the I.T.Act, 1961 (the Act), the AO disallowed remittances of employees contribution to PF and ESI u/s 36(1)(va) of the Act. He also disallowed a sum of Rs.13,133/- being interest on TDS which is not allowable as expenditure and Rs.2,61,593/- being ROC charges incurred in connection with increase in authorised share capital u/s 37(1) of the Act treating it as capital expenditure. He also disallowed taxes not paid before the due date u/s 43B of the Act.

ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd. Subsequently rectification order u/s 154 of the Act was also passed giving credit for TDS claimed in the revised return of the assessee. Aggrieved by the assessment order, the assessee filed an appeal before the CIT(A) who dismissed assessee’s appeal only for the reason that the assessee did not appear on the dates fixed for hearing and particularly on 21.1.2019. 3. Aggrieved the assessee is in appeal before us raising the following grounds of appeal. “1. General. 2. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in law and on facts of the case in confirming the disallowance u/s 36(1)(va) : Tax effect : Rs.1,71,273/-. 3. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in law and on facts of the case in confirming the disallowance u/s 37(1) : Tax effect : Rs.89,135/-. 4. On the facts and in the circumstances of the case, the Ld.CIT(A) erred in law and on facts of the case in confirming the disallowance u/s 43B : Tax effect : Rs.7,47,293/-. Total tax effect: Rs.10,07,701/-.

ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd.

Copy to:- 1) M/s Buildmate Projects India P Ltd., Survey no.60-62, NH 7, Gundlapochampally, Medchal Mandal, Hyderabad – 500 014. 2) ITO, Ward 1(3), Hyderabad. 3) The Pr.CIT-1, Hyderabad 4) The ACIT, Range 1, Hyderabad 5) The DR, ITAT, Hyderabad 6) Guard File CIT(A-1, Hyderabad

ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd.