Dcit Circle 3 2 Hyd Hyderabad v. Sri Vinayaka Paper And Boards Ltd Hyd Hyderabad

In The Income Tax Appellate Tribunal Hyderabad Bench A Hyderabad Before Smt P Madhavi Devi Judicial Member And Shri S Rifaur Rahman Accountant Member Ita No 1084 Hyd 2016 Assessment Year 2012 13 The Dy Commissioner Of Income Tax Circle 3 2 Hyderabad Vs M S Sri Vinayaka Paper Boards Ltd Hyderabad Pan Aaecs 6961 K Applicant Respondent Revenue By Smt Suman Malik Assessee By Sri P Murali Mohana Rao Date Of Hearing 11 12 2017 Date Of Pronouncement 29 12 2017 Order Per P Madhavi Devi J M In This Appeal The Revenue Is Aggrieved By The Order Of The Cit A 3 Hyderabad Dated 20 05 2016 The Grounds Of Appeal Raised By The Revenue Are As Under 1 The Ld Cit A Erred Both In Law And On Facts Of The Case 2 The Ld Cit A Erred In Deleting The Addition Disallowance Of Rs 3 08 428 Out Of Total Amount Of Rs 30 84 285 Claimed Towards Boiler Maintenance Without Appreciating The Facts Brought On Record By The A O 3 The Ld Cit A Erred In Deleting The Addition Disallowance Of Rs 7 93 998 Out Of Total Amount Of Rs 79 39 981 Claimed Towards Coal Purchase Without Appreciating The Facts Brought On Record By The A O 4 The Ld Cit A Erred In Deleting The Addition Disallowance Of Rs 41 12 317 Out Of Total Amount Of Rs 8 22 46 345 2 Ita No 1084 Hyd 2016 M S Sri Vinayaka Paper Boards Ltd Hyderabad Claimed Towards Husk Purchase Without Appreciating The Facts Brought On Record By The A O 5 The Ld Cit A Ought To Have Appreciated That The Additions Disallowances Were Made On Account Of Unverifiable Self Made Vouchers Maintained By The Assessee As Observed By The A O And Confirmed By The Cit A 6 Any Other Ground S That May Urged At The Time Of Hearing 2 Brief Facts Of The Case Are That The Assessee Company Which Is Engaged In The Manufacturing And Trading Of Paper And Paper Products Filed Its Return Of Income For The A Y 2012 13 On 25 09 2012 Declaring A Total Income Of Rs 52 82 920 During The Assessment Proceedings U S 143 3 Of The Act The A O Verified The Ledgers Of Boiler Maintenance And Coal And Husk Purchases And Observed That Most Of The Expenditure Under These Heads Are Incurred In Cash With Each Amount Being Less Than Rs 20 000 He Also Observed That All Such Expenses Are Supported Only By Self Made Vouches Hence He Held That Over Invoicing Is Bound To Be Inherent In These Type Of Expenses Thus He Disallowed 10 Of Boiler Maintenance And Coal Purchases And 5 Of Husk Purchases And Added It To The Total Income Of The Assessee Further He Also Observed That An Amount Of Rs 77 300 Has Been Debited Towards Income Tax And Since It Is Not An Admissible 3 Ita No 1084 Hyd 2016 M S Sri Vinayaka Paper Boards Ltd Hyderabad Expenditure He Added It Back To The Computation And Brought It To Tax 3 Aggrieved Assessee Preferred An Appeal Before The Cit A Who Deleted The Disallowances Boiler Maintenance And Purchases Of Coal And Husk But Confirmed The Disallowance Of The Income Tax Paid Against The Relief Granted By The Cit A The Revenue Is In Appeal Before Us 4 At The Time Of Hearing The Ld Counsel For The Assessee Submitted That The Very Same Issues Have Arisen In The Assessees Own Case For The A Y 2010 11 And The Tribunal At Paras 4 And 5 Of Its Order Has Held As Under 4 Having Regard To The Rival Contentions And The Material On Record We Find That The Expenditure Considered For Disallowance Is Under The Heads Freight Cartage Machinery Maintenance And Husk Purchase Etc The Only Ground For Disallowance Is That They Are Supported By Self Made Vouchers Of The Assessee The Learned Counsel For The Assessee Had Submitted That The Assessee Has Been Maintaining The Books Of Accounts And In The Earlier And Subsequent Assessment Years No Such Disallowances Were Made By The Ag He Had Also Submitted That Unless And Until The Ao Gives A Finding That The Expenditure Is Not Genuine No Disallowance Can Be Made We Agree With The Contention Of The Assessee Since The Ao Has Not Pointed Out Any Defects Except That The Vouchers Are Self Made While No Defects Have Been Pointed Out And Also No Finding Is Given That Such Expenditure Is Excessive No Disallowance Can Be Sustained In View Of The Same We See No Reason To Interfere With The Order Of The Cit A And The Revenues Appeal Is Accordingly Dismissed 5 In The Result Revenues Appeal Is Dismissed 4 Ita No 1084 Hyd 2016 M S Sri Vinayaka Paper Boards Ltd Hyderabad 5 Since The Facts And Circumstances For The Assessment Year Before Us Are The Same We See No Reason To Interfere With The Order Of The Cit A Accordingly The Revenues Grounds Are Rejected 6 In The Result The Appeal Filed By The Revenue Is Dismissed Pronounced In The Open Court On 29 Th December 2017 Sd Sd S Rifaur Rahman P Madhavi Devi Accountant Member Judicial Member Hyderabad Dated 29 Th December 2017 Krk 1 M S Sri Vinayaka Paper Boards Ltd 404 A Concourse 7 1 58 Greenland Road Ameerpet Hyderabad 16 2 Dy Cit Circle 3 2 Hyderabad 3 Cit A 3 Hyderabad 4 The Pcit 3 Hyderabad 5 The Departmental Representative I T A T Hyderabad 6 Guard File