M/S. ANDHRA PRADESH TANNERIES LTD.,VISAKHAPATNAM vs. THE DCIT, VISAKHAPATNAM
What did the Tribunal hold?
The Tribunal admitted the additional evidence filed by the assessee and set aside the CIT(A)'s order. The matter was remitted back to the Assessing Officer for fresh consideration.
What were the facts?
The assessee claimed salary expenditure of Rs. 59,99,248, but could not provide supporting details to the authorities below. The CIT(A) disallowed Rs. 30 lakhs of this claim.
What were the issues?
Whether additional evidence filed by the assessee at the appellate stage should be admitted and whether the disallowance of salary expenditure was justified without proper examination of evidence.
Which sections of the Income-tax Act were involved?
Rule 29
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO & SHRI D.S. SUNDER SINGH
आदेश / O R D E R
PER V. DURGA RAO, Judicial Member:
This appeal filed by the assessee is directed against order of the
CIT(A)-1, Visakhapatnam vide ITA No.90/2010-11/DC,C-3(1),Vsp/2016-
17 dated 3.10.2016 for the assessment year 2008-09.
When this appeal is taken up for hearing, the Ld. Counsel for the
assessee has submitted that the Ld. CIT(A) has disallowed to the tune of 1
ITA No.501 /Vizag/2016 M/s. Andhra Pradesh Tanneries Ltd., Vizianagaram ` 30 lakhs out of ` 59,99,248/- claimed as an expenditure towards
salaries on the ground that no details were filed. It is submitted that
the assessee company is in a huge financial loss and due to non-
availability of supporting staff, assessee was not able to file the details.
Now the assessee has filed all the details and also filed an application
under Rule 29 of the Income Tax Appellate Rules, 1963 and the details
filed by the assessee may be admitted and requested that the issue may
be remitted back to the file of the A.O. to consider afresh in accordance
with law.
On the other hand, the Ld. D.R. strongly opposed that at this
stage additional evidence filed by the assessee cannot be admitted.
We have heard both the parties, perused the materials available
on record and gone through the orders of the authorities below. The
only issue involved in this appeal is disallowance of salary expenditure
claimed by the assessee. The assessee has claimed an amount of `
59,99,248/- as salaries paid to the employees. The assessee is not able
to furnish relevant vouchers and supportive evidence before the
authorities below. Therefore, the CIT(A) has disallowed to the tune of `
30 lakhs and directed the A.O. to allow remaining part. Under these
facts and circumstances of the case by considering the explanation given
ITA No.501 /Vizag/2016 M/s. Andhra Pradesh Tanneries Ltd., Vizianagaram by the assessee, we are of the opinion that the additional evidence filed
by the assessee in this regard has to be examined and the issue has to
be decided as per the merits of the case. Accordingly, we admit the
additional evidence filed by the assessee. In view of the above, the
order passed by the Ld. CIT(A) is set aside and remitted matter back to
the file of the A.O. to consider the evidence in respect of salary
payments and pass orders in accordance with law.
In the result, the appeal filed by the assessee is allowed for
statistical purposes.
The above order was pronounced in the open court on 6th Apr’18.
Sd/- Sd/- ( ड.एस. . . . सु�दर "संह) (वी. दुगा�राव) (D.S. SUNDER SINGH) (V. DURGA RAO) लेखा सद�य/ACCOUNTANT MEMBER �या�यक सद�य/JUDICIAL MEMBER #वशाखापटणम /Visakhapatnam: 'दनांक /Dated : 06.04.2018 VG/SPS आदेश क� ��त)ल#प अ*े#षत/Copy of the order forwarded to:-
अपीलाथ� / The Appellant – M/s. Rowe & Pal, Chartered Accountants, 14-36-1,
Krishna Nagar, Visakhapatnam 2. ��याथ� / The Respondent – The DCIT, Circle-3(1), Visakhapatnam
आयकर आयु+त / The Principal CIT-1, Visakhapatnam
ITA No.501 /Vizag/2016 M/s. Andhra Pradesh Tanneries Ltd., Vizianagaram
आयकर आयु+त (अपील) / The CIT (A)-1, Visakhapatnam
#वभागीय ��त�न.ध, आय कर अपील�य अ.धकरण, #वशाखापटणम /
DR, ITAT, Visakhapatnam
गाड� फ़ाईल / Guard file
आदेशानुसार / BY ORDER // True Copy //
Sr. Private Secretary ITAT, VISAKHAPATNAM
Recent GST High Court judgments
Search GST case law →- Sutlej Textiles And Industries Limited vs. Union Of INDIARajasthan · 26 Oct 2026
- M/S. Ut Corp vs. Union Of INDIARajasthan · 26 Oct 2026
- Sunrise Engineering vs. The State Of Andhra PradeshAndhra Pradesh · 26 Oct 2026
- M/S Kalra Traders vs. Union Of INDIAUttarakhand · 26 Oct 2026
- Ms Isoft vs. The Commissioner State TaxUttarakhand · 26 Oct 2026