w w w . L a w y e r S e r v i c e s . i n



Agarwal Global Steels Limited v/s Dy Commissioner of Income Tax


Company & Directors' Information:- V S L STEELS LIMITED [Active] CIN = U27109KA2003PLC058185

Company & Directors' Information:- H M STEELS LIMITED [Active] CIN = U27106PB1999PLC022707

Company & Directors' Information:- B N GLOBAL PRIVATE LIMITED [Active] CIN = U15400PB2014PTC038543

Company & Directors' Information:- D S R M STEELS PRIVATE LIMITED [Active] CIN = U27310TZ2005PTC012353

Company & Directors' Information:- P D P STEELS LTD [Active] CIN = U65921WB1996PLC077555

Company & Directors' Information:- K V GLOBAL PRIVATE LIMITED [Active] CIN = U24100DL2014PTC263567

Company & Directors' Information:- GLOBAL CORPORATION LIMITED [Active] CIN = L74999DL1992PLC048880

Company & Directors' Information:- T & I GLOBAL LTD. [Active] CIN = L29130WB1991PLC050797

Company & Directors' Information:- S D S STEELS PRIVATE LIMITED [Active] CIN = U51420TN2006PTC060563

Company & Directors' Information:- AGARWAL GLOBAL STEELS LIMITED [Active] CIN = U27107TG1996PLC023538

Company & Directors' Information:- K G GLOBAL PRIVATE LIMITED [Active] CIN = U74999DL2000PTC104788

Company & Directors' Information:- GLOBAL STEELS LIMITED [Dormant under section 455] CIN = U27105AP1995PLC021402

Company & Directors' Information:- R K K R STEELS PRIVATE LIMITED [Active] CIN = U27101TN1965PTC006069

Company & Directors' Information:- O P STEELS PRIVATE LIMITED [Active] CIN = U27109DL1987PTC027085

Company & Directors' Information:- A. V. GLOBAL CORPORATION PRIVATE LIMITED [Active] CIN = U63090DL2007PTC159315

Company & Directors' Information:- H R STEELS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC070914

Company & Directors' Information:- B G STEELS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC042560

Company & Directors' Information:- N G A STEELS PRIVATE LIMITED [Active] CIN = U27109TZ1995PTC005908

Company & Directors' Information:- C V S STEELS PRIVATE LIMITED [Active] CIN = U29253DL2009PTC189824

Company & Directors' Information:- P P S. STEELS INDIA PRIVATE LIMITED [Active] CIN = U27106TZ2002PTC010188

Company & Directors' Information:- J P STEELS LTD [Active] CIN = U27107AS1992PLC003736

Company & Directors' Information:- A N GLOBAL LIMITED [Active] CIN = U92110MH1985PLC035269

Company & Directors' Information:- D S GLOBAL PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071516

Company & Directors' Information:- K P STEELS LIMITED [Liquidated] CIN = U27109TG1986PLC006878

Company & Directors' Information:- P L STEELS PRIVATE LIMITED [Active] CIN = U27109UR2004PTC000445

Company & Directors' Information:- Z V STEELS PRIVATE LIMITED [Active] CIN = U51909MH1997PTC109791

Company & Directors' Information:- M Q STEELS PRIVATE LIMITED [Active] CIN = U74899DL1997PTC089231

Company & Directors' Information:- N. STEELS PRIVATE LIMITED [Active] CIN = U27106GJ2009PTC056732

Company & Directors' Information:- C I C STEELS PVT LTD [Active] CIN = U27109WB1988PTC045251

Company & Directors' Information:- M J R STEELS PVT LTD [Active] CIN = U74999WB1996PTC076803

Company & Directors' Information:- H S M STEELS PRIVATE LIMITED [Active] CIN = U27100TG2010PTC067913

Company & Directors' Information:- A B C GLOBAL PRIVATE LIMITED [Active] CIN = U51909PB2011PTC035103

Company & Directors' Information:- D C STEELS LIMITED [Active] CIN = U27106PB1990PLC010517

Company & Directors' Information:- G M K STEELS PRIVATE LIMITED [Active] CIN = U74899DL2000PTC108623

Company & Directors' Information:- S I F STEELS LIMITED [Active] CIN = U27310GJ1972PLC002137

Company & Directors' Information:- M U STEELS PRIVATE LIMITED [Active] CIN = U27100DL2011PTC228818

Company & Directors' Information:- M P K STEELS I PRIVATE LIMITED [Active] CIN = U27109AS2005PTC007674

Company & Directors' Information:- L M STEELS PRIVATE LIMITED [Active] CIN = U13209UP1980PTC005064

Company & Directors' Information:- S I STEELS INDIA PRIVATE LIMITED [Strike Off] CIN = U52390PY2009PTC002285

Company & Directors' Information:- P M P STEELS LIMITED [Strike Off] CIN = U93090TN1994PLC026915

Company & Directors' Information:- I A T GLOBAL COMPANY PRIVATE LIMITED [Active] CIN = U24116DL1997PTC084916

Company & Directors' Information:- M A STEELS PRIVATE LIMITED [Active] CIN = U27109KL2002PTC015691

Company & Directors' Information:- M D STEELS PRIVATE LTD. [Active] CIN = U74899DL1987PTC029358

Company & Directors' Information:- J D GLOBAL PRIVATE LIMITED [Active] CIN = U51909DL1997PTC091270

Company & Directors' Information:- D. I. STEELS PRIVATE LIMITED [Active] CIN = U27100MH2005PTC153442

Company & Directors' Information:- A B M STEELS PRIVATE LIMITED [Active] CIN = U27101GJ1986PTC008391

Company & Directors' Information:- T & S STEELS INDIA PRIVATE LIMITED [Strike Off] CIN = U27109KA2007PTC043617

Company & Directors' Information:- B N G GLOBAL INDIA LIMITED [Active] CIN = U52590DL2011PLC225377

Company & Directors' Information:- N K COMPANY (GLOBAL) PRIVATE LIMITED [Active] CIN = U52390WB2010PTC153624

Company & Directors' Information:- K B K GLOBAL PRIVATE LIMITED [Active] CIN = U24296DL2016PTC290487

Company & Directors' Information:- T G V STEELS LIMITED [Strike Off] CIN = U27100TG1996PLC023224

Company & Directors' Information:- A TO Z STEELS PRIVATE LIMITED [Active] CIN = U74899DL1988PTC030735

Company & Directors' Information:- S K STEELS PVT LTD [Active] CIN = U27109WB1971PTC027999

Company & Directors' Information:- B. K. STEELS PVT. LTD. [Active] CIN = U27109WB1995PTC068343

Company & Directors' Information:- M & D GLOBAL PRIVATE LIMITED [Active] CIN = U31101UP1974PTC003937

Company & Directors' Information:- S M STEELS INDIA PRIVATE LIMITED [Active] CIN = U74899DL1974PTC007190

Company & Directors' Information:- V R GLOBAL PRIVATE LIMITED [Active] CIN = U45200WB2007PTC120797

Company & Directors' Information:- I R C STEELS LTD [Active] CIN = U45208WB1966PLC024114

Company & Directors' Information:- G K M STEELS PRIVATE LIMITED [Active] CIN = U27105DL2012PTC246243

Company & Directors' Information:- R B STEELS PRIVATE LIMITED [Active] CIN = U27106AS1994PTC004200

Company & Directors' Information:- S. A. STEELS PVT LTD [Strike Off] CIN = U27106PB1985PTC006227

Company & Directors' Information:- M M GLOBAL PRIVATE LIMITED [Strike Off] CIN = U29120WB1986PTC041280

Company & Directors' Information:- A H STEELS PRIVATE LIMITED [Active] CIN = U74899DL1995PTC073017

Company & Directors' Information:- J K L STEELS PVT LTD [Active] CIN = U27104DL1997PTC088424

Company & Directors' Information:- R V GLOBAL PRIVATE LIMITED [Active] CIN = U74990MH2009PTC195301

Company & Directors' Information:- E D STEELS PVT LTD [Active] CIN = U27310MH1975PTC018180

Company & Directors' Information:- P AND B STEELS INDIA LIMITED [Active] CIN = U27106KL1995PLC008742

Company & Directors' Information:- M M C GLOBAL INDIA PRIVATE LIMITED [Strike Off] CIN = U11200MH2010PTC206910

Company & Directors' Information:- V K STEELS PVT LTD [Strike Off] CIN = U27310HP1987PTC007712

Company & Directors' Information:- S R GLOBAL PRIVATE LIMITED [Strike Off] CIN = U51109WB1997PTC084553

Company & Directors' Information:- N E STEELS PRIVATE LIMITED [Strike Off] CIN = U27104WB2002PTC116973

Company & Directors' Information:- U R STEELS PRIVATE LIMITED [Strike Off] CIN = U27100TG2008PTC060899

Company & Directors' Information:- H V GLOBAL PRIVATE LIMITED [Active] CIN = U18101DL2000PTC103960

Company & Directors' Information:- R P GLOBAL PRIVATE LIMITED [Strike Off] CIN = U74990MH2009PTC193409

Company & Directors' Information:- M S GLOBAL PRIVATE LIMITED [Active] CIN = U70100MH2008PTC213273

Company & Directors' Information:- R S V GLOBAL LIMITED [Strike Off] CIN = U51909DL1994PLC059032

Company & Directors' Information:- H S STEELS PRIVATE LIMITED [Active] CIN = U27109PB1995PTC016111

Company & Directors' Information:- G S STEELS PRIVATE LIMITED [Active] CIN = U74899DL1988PTC030339

Company & Directors' Information:- P M P STEELS PRIVATE LIMITED [Strike Off] CIN = U27109TZ1990PTC002882

Company & Directors' Information:- W S STEELS PRIVATE LIMITED [Strike Off] CIN = U27106PB1982PTC005084

Company & Directors' Information:- K M S STEELS PRIVATE LIMITED [Strike Off] CIN = U27310TZ1997PTC008161

Company & Directors' Information:- S T STEELS PVT LTD [Active] CIN = U27106PB1990PTC010915

Company & Directors' Information:- K L STEELS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC038783

Company & Directors' Information:- S S A P STEELS PRIVATE LIMITED [Active] CIN = U27106DL1999PTC101645

Company & Directors' Information:- M F STEELS PVT. LTD [Active] CIN = U74899DL1971PTC005517

Company & Directors' Information:- R G STEELS PVT LTD [Active] CIN = U27109WB1987PTC042824

Company & Directors' Information:- C N STEELS PVT LTD [Strike Off] CIN = U27100GJ1994PTC022570

Company & Directors' Information:- K L STEELS P LTD [Strike Off] CIN = U27109PB1984PTC005895

Company & Directors' Information:- S B STEELS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC017414

Company & Directors' Information:- V I A STEELS PRIVATE LIMITED [Strike Off] CIN = U27109UP1993PTC015933

Company & Directors' Information:- K K STEELS INDIA PVT LTD [Active] CIN = U27109PB1990PTC010714

Company & Directors' Information:- N B GLOBAL (INDIA) PRIVATE LIMITED [Active] CIN = U15122UP2012PTC051614

Company & Directors' Information:- D R J STEELS PRIVATE LIMITED [Active] CIN = U27310PB2007PTC031003

Company & Directors' Information:- S R R STEELS PRIVATE LIMITED [Strike Off] CIN = U27105KL1998PTC012156

Company & Directors' Information:- M. G. STEELS LIMITED [Active] CIN = U74999DL1986PLC025140

Company & Directors' Information:- A B N STEELS PRIVATE LIMITED [Strike Off] CIN = U27106OR1996PTC004473

Company & Directors' Information:- A Y STEELS PRIVATE LIMITED [Active] CIN = U74120UP2014PTC066079

Company & Directors' Information:- I D STEELS PRIVATE LIMITED [Active] CIN = U74899DL2000PTC109048

Company & Directors' Information:- V R STEELS PRIVATE LIMITED [Strike Off] CIN = U74899DL1981PTC011447

Company & Directors' Information:- R D STEELS LIMITED [Active] CIN = U27106PB1999PLC022934

Company & Directors' Information:- P S G STEELS PRIVATE LIMITED [Active] CIN = U27109HR1984PTC018249

Company & Directors' Information:- N D STEELS LTD [Strike Off] CIN = U28111WB1989PLC047025

Company & Directors' Information:- K J STEELS PVT LTD [Strike Off] CIN = U27310GJ1981PTC004392

Company & Directors' Information:- V L STEELS PRIVATE LIMITED [Strike Off] CIN = U27107WB2004PTC100815

Company & Directors' Information:- R K STEELS PRIVATE LIMITED [Strike Off] CIN = U74899DL1985PTC020523

Company & Directors' Information:- S F STEELS PVT LTD [Active] CIN = U51900WB2006PTC107234

Company & Directors' Information:- E R S STEELS PVT LTD [Strike Off] CIN = U27104KL1994PTC008341

Company & Directors' Information:- K K K STEELS PRIVATE LIMITED [Strike Off] CIN = U27106PB1998PTC020961

Company & Directors' Information:- K. N. STEELS PRIVATE LIMITED [Strike Off] CIN = U27107WB2007PTC117868

Company & Directors' Information:- A AND A STEELS PVT LIMITED [Strike Off] CIN = U27104CH1993PTC012992

Company & Directors' Information:- M G INDIA STEELS PRIVATE LIMITED [Strike Off] CIN = U27104TN2005PTC056331

Company & Directors' Information:- N. J. STEELS PRIVATE LIMITED [Amalgamated] CIN = U27108DL1996PTC077190

Company & Directors' Information:- B M STEELS PRIVATE LIMITED [Active] CIN = U51102TN1976PTC007165

Company & Directors' Information:- R T STEELS PVT LTD [Active] CIN = U27109TG1982PTC003556

Company & Directors' Information:- L. R. STEELS PRIVATE LIMITED [Strike Off] CIN = U27106UP2002PTC026946

Company & Directors' Information:- R. S. A. STEELS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U51392DL2011PTC213878

Company & Directors' Information:- K S R STEELS PRIVATE LIMITED [Strike Off] CIN = U99999DL1992PTC049052

Company & Directors' Information:- S R STEELS PVT LTD [Strike Off] CIN = U27104PB1983PTC005586

Company & Directors' Information:- M B STEELS PRIVATE LIMITED [Strike Off] CIN = U99999MH1975PTC018595

Company & Directors' Information:- M R STEELS PVT LTD [Active] CIN = U27108MH1980PTC022743

Company & Directors' Information:- N I STEELS PRIVATE LIMITED [Strike Off] CIN = U27209UP1978PTC004654

Company & Directors' Information:- J M M D STEELS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC035398

Company & Directors' Information:- B C S STEELS PRIVATE LIMITED [Strike Off] CIN = U27100PB2005PTC027831

Company & Directors' Information:- K. A. STEELS PRIVATE LIMITED [Active] CIN = U27100PB2011PTC034822

Company & Directors' Information:- B K STEELS PRIVATE LIMITED [Strike Off] CIN = U27109PB1985PTC006128

Company & Directors' Information:- A M GLOBAL PRIVATE LIMITED [Active] CIN = U74999MH2015PTC261061

Company & Directors' Information:- L S A GLOBAL INDIA PRIVATE LIMITED [Under Process of Striking Off] CIN = U74900TG2015PTC098308

Company & Directors' Information:- R L GLOBAL INDIA PRIVATE LIMITED [Strike Off] CIN = U52300HP2014PTC000764

Company & Directors' Information:- A P R STEELS PRIVATE LIMITED [Strike Off] CIN = U27109DL2000PTC104579

Company & Directors' Information:- H A S STEELS PRIVATE LIMITED [Active] CIN = U27109DL2004PTC125908

Company & Directors' Information:- D N S STEELS PRIVATE LIMITED [Active] CIN = U28991DL2013PTC259964

Company & Directors' Information:- G R GLOBAL PRIVATE LIMITED [Active] CIN = U70102KA2013PTC069586

Company & Directors' Information:- H. E. GLOBAL PRIVATE LIMITED [Active] CIN = U72901GJ2016PTC092866

Company & Directors' Information:- A Z STEELS PVT LTD [Strike Off] CIN = U72100NL1993PTC003884

Company & Directors' Information:- A N STEELS PVT LTD [Strike Off] CIN = U72100AS1993PTC003848

    ITA No. 1015/Hyd of 2018

    Decided On, 09 January 2019

    At, Income Tax Appellate Tribunal Hyderabad

    By, THE HONOURABLE MRS. P. MADHAVI DEVI
    By, JUDICIAL MEMBER & THE HONOURABLE MR. S. RIFAUR RAHMAN
    By, ACCOUNTANT MEMBER

    For the Appellant: K.C. Devdas, Advocate. For the Respondent: Nilanjan Dey, Advocate.



Judgment Text

S. Rifaur Rahman, AM:

1. This appeal filed by the assessee is directed against the order of CIT(A) - 1, Hyderabad, dated, 12/03/2018 for AY 2014-15.

2. Brief facts of the case are that the Assessee company engaged in the business of manufacturing and trading steel, filed its return of income on 20/11/2014 for the AY 2014 -15 declaring loss of Rs. (-) 63,122/- and book profit at Rs. 21,66,825/-. Subsequently, the case was selected for scrutiny under CASS and notices u/s 143(2) and 142(1) were issued, against which, the assessee filed the required information. The AO completed the assessment u/s 143(3) on 30/12/2016 determining the total income at Rs. 27,63,653/ - by making various disallowances.

3. When the assessee preferred an appeal before the CIT(A), the CIT(A) partly allowed the appeal of the assessee.

4. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising the following grounds of appeal:

"The order of the Learned Commissioner of Income Tax (Appeals)-4, Hyderabad erred in -

(i). Disallowing the unexplained expenses apart from being contrary to the facts and evidence on record is wholly unsustainable both on facts and in law and therefore must be deleted.

(ii). Erred in disallowing a sum of Rs. 32,434/- being the contribution of employees towards Provident Fund (PF), which was paid before the due date of filing of return of income.

(iii). Erred in disallowing loss on sale of assets at Rs. 68,791/-.

(iv). Erred in disallowing business remuneration expenses at Rs.36,280/-.

(v). Erred in disallowing Carriage Inward Expenses at Rs. 22,56,968/-

(vi). Erred in disallowing Transport Expenses of Rs. 3,32,570/-.

(vii). Erred in disallowing De-coiling Charges at Rs. 32,434/-.

(viii). Any ground or grounds that may be urged at the time of hearing."

5. Ground Nos. (i) and (viii) are general in nature. Ground No. (iii) is not pressed before us and the same was dismis sed as not pressed.

6. As regards ground No. (ii) with regard to disallowance of Rs. 32,434/-, being the contribution of employees towards PF, the AO disallowed the same on the ground that the assessee Agarwal Global Steels Ltd., Sec 'bad has remitted the same beyond the due date stipulated under the respective Act.

6.1. Before the CIT(A), the assessee submitted that though the employees' contributions of PF was paid after the due date, but, it was paid before filing of the return of income under the provisions of section 43B of the Act, hence, no disallowance can be made. However, the CIT(A) rejected the submissions of the assessee and upheld the disallowance.

6.2. Considered the rival submissions and perused the material on record. It is a settled position of law that if the contributions towards PF & ESI are paid beyond the due date but before filing of the return of income u/s 139(1) of the Act, no disallowance can be made as per the ratio laid down by the Hon'ble Supreme Court in the case of CIT Vs. Alom Extrusions Ltd. [2009] 319 ITR 306 (SC). Therefore, ground No. (ii) is allowed.

7. As regards ground Nos. (iv) to (vii) relating to disallowances like business remuneration expenses of Rs. 36,280/-, disallowance of carriage inward expenses of Rs. 22,56,968/-, disallowance of transport expenses of Rs. 3,32,570/-, and disallowance of De -coiling charges of Rs. 32,434/-, the AO has made the disallowances on these heads on the ground that they were not supported by proper bills/vouchers and are not verifiable to the extent of disallowances made as above.

8. The ld. AR of the assessee relied on the decision of the coordinate bench of this Tribunal in the case of Vishal Infrastructure Ltd. Vs. ACIT, 104 ITD 537. Further, he submitted a statement of expenditure for the year 2010 -11 to 2016-17. As per the statement, AO made disallowance in Ay Agarwal Global Steels Ltd., Sec 'bad 2012-13 & 2013-14, ld. CIT(A) has allowed the above said expenditure. He prayed that the expenditures are made for the purpose of business only and prayed that the same may be allowed for this year also.

9. Ld. DR relied on the orders of revenue authorities.

10. Considered the rival submissions and perused the material on record. It is observed that the revenue authorities have not disputed that the assessee has incurred the expenditures against the respective heads, but, the some of the expenditures were not supported by proper bills/vouchers, and preferred to disallow 15% carriage inwards and 10% o n business promotion, transport expenses and decoiling charges. In our view, assessee is running this business over the years and all along department has accepted the expenditures claimed by the assessee and only this AY, certain percentage of expenditures were disallowed for the reason that certain vouchers were not supported.

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Considering the overall facts and circumstances, we deem it fit and proper to direct the AO to disallow 5% of the expenditures considering the fact that AO should have determined the actual expenditures, which are not supported by proper vouchers and bills. We come to conclusion of 5% disallowance considering the fact that all along department allowed the claims of the assessee over the years. Therefore, the grounds raised by the assessee on these issues are partly allowed. 11. In the result, appeal of the assessee is partly allowed.
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