DEPUTY COMMISSIONER OF INCOME TAX, VIJAYAWADA vs. NS HEALTHCARE SERVICES PRIVATE LIMITED, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

DEPUTY COMMISSIONER OF INCOME TAX, VIJAYAWADA vs. NS HEALTHCARE SERVICES PRIVATE LIMITED, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

NS HEALTHCARE SERVICES PRIVATE LIMITED,VIJAYAWADA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

DEPUTY COMMISSIONER OF INCOME TAX, VIJAYAWADA vs. NS HEALTHCARE SERVICES PRIVATE LIMITED, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

NS HEALTHCARE SERVICES PRIVATE LIMITED,VIJAYAWADA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

NS HEALTHCARE SERVICES PRIVATE LIMITED,VIJAYAWADA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

NS HEALTHCARE SERVICES PRIVATE LIMITED,VIJAYAWADA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

DEPUTY COMMISSIONER OF INCOME TAX, VIJAYAWADA vs. NS HEALTHCARE SERVICES PRIVATE LIMITED, VIJAYAWADA

In the results, appeals filed by the revenue in ITA Nos

Bench: Shri Veeravalli Durga Rao, Hon’Ble & Shri S Balakrishnan, Hon’Ble

40A(3) of the Act) 5. Further Ld. AO also disallowed under section 37(1) under section 148(A) of the Act an amount of Rs.71,14,092/- considering the expenses cannot be allowed which has been incurred as a personal expenditure of the Directors. Page No. 4 I.T.A.Nos.145, 146, 147 & 148/VIZ/2025 I.T.A.Nos.184, 185, 186 & 187/VIZ/2025

NRI ACADEMY OF SICENCES,VIJAYAWADA vs. INCOME TAX OFFICER, (EXEMPTION CIRCLE), VIJAYAWADA

In the result, appeal of the assessee is allowed

Bench: Shri Vijay Pal Rao, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकरअपीलसं./I.T.A.No.213/Viz/2025 (निर्धारणवर्ा/ Assessment Year:2023-24) Vs. Nri Academy Of Sciences Income Tax Officer – Exemption 60-3-1/44 Yk Buildings Vijayawada Bus Route No. 5 Ramachandra Nagar Vijayawada, Currency Nagar S.O. Vijayawada (Urban) Krishna – 520008, Andhra Pradesh [Pan:Aaatn4207C] करदाता का प्रतततितित्व/ Assessee Represented By : Shri C. Subrahmanyam, Ca राजस्व का प्रतततितित्व/ Department Represented By : Dr. Aparna Villuri, Sr.Ar

7. For these and other reasons that may be urged at the time of hearing, the appellant prays that the orders passed u/s 250 of the Income Tax Act be set aside and the additions made by the Assessing Officer be deleted.” 5. The only issue emanating from the above grounds is with respect to disallowances made under section 40A

MOHAMMED ALI SHAIK, ,VIJAYAWADA vs. THE INCOME TAX OFFICER, WARD-2(4), , VIJAYAWADA

In the result, appeal filed by the Assessee stands partly allowed

Bench: Shri N.K. Choudhry, Hon’Ble & Shri D.S. Sunder Singh, Hon'Ble

7. We have heard the parties and perused the material available on record and the orders of the authorities below. In view of the remand report submitted by the AO, the ld. Commissioner out of disallowance of Rs. 1,35,87,225/- which was made by the AO while applying the provisions of section 40A

SRI LUXMI TULASI AGRO PAPERS PVT LTD,RAJAHMUNDRY vs. ASSISTNT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), RAJAHMUNDRY

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.195 & 196/Viz/2023 (निर्धारण वर्ा/ Assessment Years: 2010-11 & 2012-13)) Sri Luxmi Tulasi Agro Papers (P.) Ltd., V. Joint Commissioner Of Income Tax Rajahmundry Range D.No. 25-2-20, Jayakrishnapuram Aayakar Bhavan Annexe Rajamundry – 533105 Veerabhadrapuram Andhra Pradesh Kambala Cheruvu Rajamahendravaram [Pan: Aaecs2798A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

40A(7) of the Act and disallowances of expenditure for repairs of plant and machinery were not pressed by the assessee and hence the same are dismissed as not pressed. 8. The only issue common to both the appeals are with respect to disallowances of the deduction claimed under section

SRI LUXMI TULASI AGRO PAPERS PVT LTD,RAJAHMUNDRY vs. JOINT COMMISSIONER OF INCOME TAX, RAJAHMUNDRY RANGE, RAJAHMUNDRY

In the result, appeal filed by the assessee is partly allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपीलसं./I.T.A.Nos.195 & 196/Viz/2023 (निर्धारण वर्ा/ Assessment Years: 2010-11 & 2012-13)) Sri Luxmi Tulasi Agro Papers (P.) Ltd., V. Joint Commissioner Of Income Tax Rajahmundry Range D.No. 25-2-20, Jayakrishnapuram Aayakar Bhavan Annexe Rajamundry – 533105 Veerabhadrapuram Andhra Pradesh Kambala Cheruvu Rajamahendravaram [Pan: Aaecs2798A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

40A(7) of the Act and disallowances of expenditure for repairs of plant and machinery were not pressed by the assessee and hence the same are dismissed as not pressed. 8. The only issue common to both the appeals are with respect to disallowances of the deduction claimed under section

SREEDHARALA JOGARAO & SONS,VISAKHAPATNAM vs. THE ASSISTANT COMMISSIONR OF INCOME TAX, CIRCLE-1(1), VISAKHAPATNAM

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

disallowances arising out of section 40A(3) and prior period expenses and therefore prayed that the rectification order of the Ld. AO be set-aside. 6. Per contra, the Ld. Departmental Representative relied on the order of the Ld. Revenue Authorities and argued in support of their decision. 7

GALI SUBBA RAJU,DOWLESWARAM vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), RAJAMAHENDRAVARAM

In the result, appeal filed by the assessee is allowed

Bench: Shri N.K.Choudhry, Hon’Ble & Shri D.S. Sunder Singh, Hon’Bleआयकर अपील सं./I.T.A.No.610/Viz/2019 (निर्धारण वर्ा/Assessment Year:2015-16) Gali Subba Raju Vs. Asst. Commissioner Of D.No.18-140/9 Income Tax Old Npcc Yard Circle-1(1) Dowleswaram Rajahmundry [Pan : Advpg0370K] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri G.V.N.Hari, Ar प्रत्यधथी की ओर से / Respondent By : Smt.Suman Malik, Dr सुिवधई की तधरीख / Date Of Hearing : 23.03.2021 घोर्णध की तधरीख/Date Of Pronouncement : 07.04.2021 आदेश /O R D E R Per D.S.Sunder Singh: Condonation Of Delay : This Appeal Is Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)[Cit(A)], Rajamahendravaram In Ita.No.10081/2017-18/Cit(A)/Rjy Dated 01.07.2019 For The Assessment Year (A.Y.) 2015-16 With The Delay Of 6 Days. The Assessee Has Filed The 2

disallowance u/s 40A(3) attracts, if the assessee makes the payment in excess of Rs.20,000/- in a day to any person with regard to the expenditure incurred. Since each payment was less than Rs.20,000/-, the question of application of section 40A(3) does not arise. The lower authorities could not find any defect in the books of accounts

PARASURAM KESARI,VISAKHAPATNAM vs. INCOME TAX OFFICER, WARD-5(4), VISAKHAPATNAM

In the result, appeal of the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

section 154 of the Act. 5. The Ld. AO while making additions on account of disallowances U/s. 40A(3) of the Act failed to given an opportunity thus violated the principles of natural justice therefore the addition made is to be deleted on this count alone. 6. For these and other reasons that are to be urged at the time

RANAR AGROCHEM LIMITED,PARAWADA vs. DEPUTY COMMISSIONER OF INCOME TAX, VISAKHAPATNAM

Bench: Shri Manjunatha G. & Shri Ravish Soodआ.अपी.सं /Ita No.288/Viz/2024 (िनधा"रण वष"/Assessment Year:2014-15) Ranar Agrochem Limited, Vs. Deputy Commissioner Visakhapatnam. Of Income Tax, Visakhapatnam. Pan: Aaccp0372M (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri M. Madhusudan, Ca (Hybrid) राज" व "ारा/Revenue By: Sri Jenardhanan V, Cit-Dr सुनवाई की तारीख/Date Of Hearing: 14/10/2025 घोषणा की तारीख/Date Of 31/10/2025 Pronouncement: आदेश / Order Per. Ravish Sood, J.M: The Present Appeal Filed By The Assessee Company Is Directed Against The Order Passed By The Commissioner Of Income-Tax (Appeals), National Faceless Appeal Center (Nfac), Delhi, Dated 15/05/2024, Which In Turn Arises From The Order Passed By The Assessing Officer (For Short, “A.O.”) Under Section 143(3) Of The Income Tax Act, 1961 (For Short “The Act”) Dated 30/12/2016 For A.Y.

40a(la) of the Act. 5.3.1 It is noticed that during the year there has been delay in remittance of employees' share of PF & ESIC amounting to Rs. 2,32,202/-. In this regard, on the legal issue and contention of the appellant that such disallowances of late payment of ESI/PF u/s 36(1)(va) is not permissible and that

CMR TRANSPORT CONTRACTORS COMPANY PRIVATE LTD,VIJYAWADA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-2(1), VIJAYAWADA

In the result, appeal of the assessee is dismissed,

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.69/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2014-15) Cmr Transport Contractors Company Vs. Dy.Commissioner Of Private Limited Income Tax D.No.54-18/3-4, Sivapuram Colony Circle-2(1) Near Iti Gate Vijayawada Vijayawada [Pan : Aaccc6075E] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

section 40A(2) of the income tax act, 1961, as the third party cases are incomparable with directors cases, since a. Directors vehicles were admittedly under exclusive hire to the assessee with its attendant substantial business advantages to the assessee’s business. b. Directors gave substantial credit on payment of hire charges to the assessee company without charging any interest

ACIT, CIRCLE-2(1), VISAKHAPATNAM vs. VIZAG SEAPORT PVT. LTD., VISAKHAPATNAM

In the result, appeal of the Revenue is dismissed

Bench: Shri Duvvuru Rl Reddy, Hon‟Ble & Shri S Balakrishnan, Hon‟Ble(Through Hybrid Hearing) आयकरअपीलसं./ I.T.A. No. 383/Viz/2017 (धनधाारणिर्ा/ Assessment Year : 2012-13) The Assistant Commissioner Of Vs. M/S. Vizag Seaport Pvt Ltd., Income Tax, Administrative Block, Circle-5(1), S4 Gallery, Port Area, Visakhapatnam. Visakhapatnam – 530035. (अपीलाथी/ Appellant) (प्रत्यथी/ Respondent) [Pan :Aabcv2484K] अपीलाथी की ओर से/ Assessee By : Sri Fenil A Bhatt, Ar प्रत्याथी की ओर से/ Revenue By : Dr. Satyasai Rath, Cit-Dr सुनिाई की तारीख/ Date Of Hearing : 15/02/2024 घोर्णा की तारीख/Date Of : /04/2024 Pronouncement O R D E R Pers. Balakrishnan:

7 ie., AY 2009-10 and 2010-11. The Ld. AR also submitted that this was not contested by the Revenue before the ITAT. Further, the Ld. AR also submitted that various High Courts and Tribunals have held short deduction of tax with a bonafide belief of the considering the transaction as contractual, disallowance u/s 40(a)(ia) cannot

KAKARLA VISHNU SRINIVASA RAO,GANAPAVARM vs. INCOME TAX OFFICER, WARD-1, TANUKU

In the result, appeal of the assessee is allowed

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

7. We have heard both the parties and perused the material available on record and the orders of the Ld. Revenue Authorities. It is a fact that the case was selected for scrutiny for the purpose of verifying the huge cash deposits into the bank account by the assessee. The Ld.AO has travelled beyond his jurisdiction in verifying the cash