RALSON CARBON BLACK LIMITED,DELHI vs. CIT (APPEALS) , CIT (APPEALS) FACELESS
Facts
The assessee, Ralson Carbon Black Limited, is in appeal against the order of the National Faceless Appeal Centre (NFAC). The case pertains to the assessment year 2007-08. During assessment proceedings, creditors' amounts were added invoking Section 41(1) of the Income Tax Act, and disallowances were made for EPF and ESI contributions, which were sustained by the CIT(A).
Held
The Tribunal found that the assessee was unable to substantiate its claim before the Assessing Officer and CIT(A). However, additional evidence was filed before the Tribunal, which was considered relevant. The Tribunal admitted these additional evidences and decided to verify them at the Assessing Officer's level.
Key Issues
Whether the addition of creditors' amounts under Section 41(1) and disallowances of EPF/ESI contributions were justified, and admissibility of additional evidence filed before the Tribunal.
Sections Cited
41(1), 143(3), 138
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
P a g e | 1 ITA No.3204/Del/2024 Ralson Carbon Black Limited (AY: 2007-08) IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, DELHI
BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER
ITA No.3204/Del/2024 (Assessment Year:2007-08)
Ralson Carbon Black Vs. Commissioner of Income Limited, Tax (Appeals) Faceless E132C, Gali No.13, Om Delhi Vihar Extn. Matiala, Uttam Nagar, Delhi �थायीलेखासं./जीआइआरसं./PAN/GIR No: AAACR 9790 D Appellant .. Respondent
Appellant by : Sh. Diptikant, CA Respondent by : Ms. Indu Bala Saini, Sr. DR
Date of Hearing 22.01.2026 Date of Pronouncement 30.01.2026 O R D E R PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 07.06.2024 of the National Faceless Appeal Centre (NFAC), Delhi
P a g e | 2 ITA No.3204/Del/2024 Ralson Carbon Black Limited (AY: 2007-08) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No. ITBA/NFAC/S/250/2024-25/1065485163(1) arising out of the order dated 23.12.2009 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the AO for AY: 2007-08.
Heard and perused the records. The assessee company is engaged in the business of manufacturing of Carbon Black and the returned of assessee were processed u/s. 143(1) on 29.08.2008 at the returned income. Thereafter, the said case was selected for scrutiny and during the assessment proceedings, all amount of creditors were added invoking the provisions of Section 41(1) of the Act and disallowances on account of EPF and ESI contributions of the employees was made, and in the appeal same has been sustained by Ld. CIT(A).
On behalf of assessee before us the application under Rule 29 has been filed for filing of additional evidence and on hearing of the same we find that primarily the case of assessee is that assessee was contesting the liabilities under criminal proceedings u/s 138 of Negotiable Instruments Act and also the liability was expressly acknowledged on the memorandum of understanding dated 12.12.2005. It was submitted by Ld. AR that due to non-
P a g e | 3 ITA No.3204/Del/2024 Ralson Carbon Black Limited (AY: 2007-08) operational status of business many relevant record like books of account, ledger are not available. However, certain evidences of Bank Statements/RTGS/NEFT statement documents have been placed and copy of which is submitted here to establish that there was no cessation of liability. It was also submitted that the there is no delay in the deposit of contribution as deposits were made before the due laid out in the respective statutes.
We find that before Assessing Officer and also before Ld. CIT(A) in spite of opportunity, assessee was unable to substantiate its claim with filing details including confirmation from the creditors or other evidences about existence of creditors. The additional evidence filed before us appear to be quite relevant, accordingly, we admit the additional evidences and consider it appropriate to that the same be verified by Ld. Tax Authorities below and the same can be conveniently be done at the stage of Assessing Officer.
Therefore we set aside the impugned orders and restore the issue on merits to the files of the Assessing Officer who shall take into consideration the additional evidences of the assessee and AO will be at liberty to call for further evidences and make verifications and pass the order afresh. Appeal is allowed for statistical purposes.
P a g e | 4 ITA No.3204/Del/2024 Ralson Carbon Black Limited (AY: 2007-08) Order pronounced in the open court on 30.01.2026
Sd/- Sd/- (Manish Agarwal) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated 30.01.2026 Mittali, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI
