P. SURENDRAN,TRIVANDRUM vs. ACIT CIRCLE 1(2), TRIVANDRUM

ITA 978/COCH/2022Status: DisposedITAT Cochin14 May 2024AY 2014-15Bench: SHRI SANJAY ARORA (Accountant Member), MS. KAVITHA RAJAGOPAL (Judicial Member)10 pages
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What did the Tribunal hold?

The Tribunal remanded the issue of sales tax remittance and TDS disallowance back to the AO for verification. It allowed the deduction for interest paid on VAT/TOT, dismissed the ground related to car depreciation and interest, and dismissed the ground concerning EPF/ESIC contributions. The disallowance under Section 40A(3) was also remanded for verification of the nature of expenditure.

What were the facts?

The assessee challenged additions made by the Assessing Officer and sustained by the CIT(A) concerning sales tax remittance, capital expenditure disallowance, car depreciation and interest, VAT/TOT interest, and employee contributions to EPF/ESIC. The assessee's return declared income of Rs. 1,75,34,220, while the AO determined it at Rs. 2,25,54,266.

What were the issues?

Whether sales tax payments and interest on VAT/TOT are allowable deductions for the relevant assessment year. Whether disallowances under Section 40A(3) and for non-deduction of TDS are justified.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 36(1)(va),Section 40a(ia),Section 139(1)

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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: SHRI SANJAY ARORA, AM & MS. KAVITHA RAJAGOPAL, JM

For Appellant: Smt. J M Jamuna Devi
For Respondent: Smt. J M Jamuna Devi
Hearing: 14.02.2024Pronounced: 14.05.2024

Per Kavitha Rajagopal, J M:

This appeal has been filed by the assessee, challenging the order of the learned

Commissioner of Income Tax (Appeals) passed u/s.250 of the Income Tax Act, 1961

(‘the Act') relevant to the Assessment Year (‘A.Y.’ for short) 2014-15. 2. The assessee has challenged the appeal on the following grounds:

1.

The order of the Commissioner of Income Tax (Appeals) is against law, facts and circumstances of the case.

2.

The Commissioner of Income Tax (Appeals) has erred in sustaining an addition of Rs.1582816/- out of the disallowance of sales tax remittance made in the assessment order. The Commissioner of Income Tax (Appeals) erred in upholding the disallowance on the ground that the payments do not relate to the financial

The order continues below.

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