M/S KRISHIVAL FOODS LIMITED (FORMERLY KNOWN AS M/S EMPYREAN CASHEWS PVT. LTD.,MUMBAI vs. ACIT, CIR-9(2)(2), MUMBAI

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ITA 857/MUM/2024Status: DisposedITAT Mumbai28 August 2024AY 2016-17Bench: SHRI NARENDRA KUMAR CHOUDHRY (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the AO had disallowed the deduction primarily due to the lack of documentary evidence for raw material costs and the genuineness of sales, as many parties to whom the organic manure was allegedly sold could not be contacted or did not respond to notices. The CIT(A) had confirmed the AO's order. However, the Tribunal found it appropriate to restore the matter to the CIT(A).

What were the facts?

The assessee, M/s. Krishival Foods Ltd., claimed a deduction of Rs. 66,43,462/- under Section 80JJA for the assessment year 2016-17, related to the production of organic manure. The assessee used cashew shells, a bye-product of their cashew processing business, as a major raw material. The Assessing Officer (AO) disallowed the deduction due to lack of substantiation for the raw material cost and the genuineness of sales.

What were the issues?

Whether the deduction claimed under Section 80JJA for the production of organic manure is allowable when the cost of raw materials (cashew shells) is not precisely ascertainable and the genuineness of sales transactions is not adequately substantiated.

Which sections of the Income-tax Act were involved?

Section 80JJA,Section 250,Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI

Before: SHRI NARENDRA KUMAR CHOUDHRY & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri P. D. Chougule (Addl. CIT) SR. D.R
For Respondent: Shri P. D. Chougule (Addl. CIT) SR. D.R

O R D E R

Per :Ratnesh Nandan Sahay, Accountant Member:

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