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M/s. Mountain Steel Pvt. Ltd v/s Ito, W-1(3), Chandiarh


Company & Directors' Information:- S A L STEEL LIMITED [Active] CIN = L29199GJ2003PLC043148

Company & Directors' Information:- M M S STEEL PRIVATE LIMITED [Active] CIN = U27109TZ1996PTC006849

Company & Directors' Information:- G. O. STEEL PRIVATE LIMITED [Active] CIN = U27100PB2007PTC031033

Company & Directors' Information:- J M G STEEL PRIVATE LIMITED [Strike Off] CIN = U27105BR1992PTC004985

Company & Directors' Information:- H L STEEL PVT LTD [Active] CIN = U27107AS1992PTC003726

Company & Directors' Information:- K V M STEEL PRIVATE LIMITED [Active] CIN = U29141DL1988PTC031248

Company & Directors' Information:- K STEEL PRIVATE LIMITED [Strike Off] CIN = U27104JH1973PTC000998

Company & Directors' Information:- R. J. STEEL PRIVATE LIMITED [Active] CIN = U28112MH2009PTC193047

Company & Directors' Information:- M M STEEL PRIVATE LIMITED [Active] CIN = U27107MH2001PTC131270

Company & Directors' Information:- B L STEEL PVT LTD [Active] CIN = U51909WB1981PTC034021

Company & Directors' Information:- R K G STEEL PRIVATE LIMITED [Active] CIN = U27109DL2004PTC128852

Company & Directors' Information:- V B STEEL PRIVATE LIMITED [Active] CIN = U28112MH2010PTC211691

Company & Directors' Information:- I B STEEL COMPANY PRIVATE LIMITED [Strike Off] CIN = U28910MH2010PTC211344

Company & Directors' Information:- J S C STEEL PRIVATE LIMITED [Active] CIN = U27106UP2013PTC061568

Company & Directors' Information:- S. M. STEEL PRIVATE LIMITED [Active] CIN = U51101MH2013PTC239811

Company & Directors' Information:- R K P STEEL LTD [Active] CIN = L27109WB1980PLC033206

Company & Directors' Information:- C P STEEL PRIVATE LIMITED [Active] CIN = U27100WB2008PTC127447

Company & Directors' Information:- A. K. J. STEEL PRIVATE LIMITED [Active] CIN = U28112WB2010PTC144880

Company & Directors' Information:- C D STEEL PVT LTD [Under Liquidation] CIN = U27109WB1981PTC034340

Company & Directors' Information:- T M S STEEL PRIVATE LIMITED [Strike Off] CIN = U02710TZ1996PTC007498

Company & Directors' Information:- P M R STEEL PRIVATE LIMITED [Active] CIN = U51102DL2003PTC122675

Company & Directors' Information:- C T STEEL PVT LTD [Active] CIN = U27109WB2005PTC106634

Company & Directors' Information:- P G STEEL PVT LTD [Strike Off] CIN = U24111AS1998PTC005409

Company & Directors' Information:- A AND S STEEL PRIVATE LIMITED [Active] CIN = U63090DL1987PTC027835

Company & Directors' Information:- J S STEEL PRIVATE LIMITED [Active] CIN = U52190CT1978PTC001432

Company & Directors' Information:- U M STEEL PRIVATE LIMITED [Strike Off] CIN = U27209TN1986PTC013670

Company & Directors' Information:- R. N. STEEL PRIVATE LIMITED [Active] CIN = U27100WB2007PTC116588

Company & Directors' Information:- P M STEEL PRIVATE LIMITED [Active] CIN = U27105MP1982PTC001915

Company & Directors' Information:- M R STEEL (INDIA) PRIVATE LIMITED [Active] CIN = U27100TG2013PTC088808

Company & Directors' Information:- C K STEEL PVT LTD [Active] CIN = U29150WB1975PTC030259

Company & Directors' Information:- K STEEL & COMPANY PVT LTD [Strike Off] CIN = U51909WB1991PTC053960

Company & Directors' Information:- N S STEEL PVT LTD [Strike Off] CIN = U27106PB1980PTC004266

Company & Directors' Information:- R C STEEL PVT LTD [Strike Off] CIN = U28112AS1980PTC001811

Company & Directors' Information:- P D STEEL PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC038426

Company & Directors' Information:- A K STEEL PVT LTD [Strike Off] CIN = U99999DL1961PTC003566

Company & Directors' Information:- H S P STEEL PRIVATE LIMITED [Strike Off] CIN = U27100MH2013PTC242983

Company & Directors' Information:- D H STEEL PRIVATE LIMITED [Strike Off] CIN = U27109RJ2012PTC039742

Company & Directors' Information:- R A STEEL PRIVATE LIMITED [Active] CIN = U51909MH2014PTC253625

Company & Directors' Information:- N. V. STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL2009PTC186541

Company & Directors' Information:- K. D. STEEL PRIVATE LIMITED [Strike Off] CIN = U28939DL2012PTC244467

Company & Directors' Information:- STEEL INDIA PRIVATE LIMITED [Strike Off] CIN = U00349KA1958PTC001309

    ITA No. 1714/Chd of 2017

    Decided On, 26 September 2018

    At, Income Tax Appellate Tribunal Chandigarh

    By, THE HONOURABLE MR. SANJAY GARG
    By, JUDICIAL MEMBER & THE HONOURABLE DR. B.R.R. KUMAR
    By, ACCOUNTANT MEMBER

    For the Appellant: T.N. Singla, Advocate. For the Respondent: Manjeet Singh, Advocate.



Judgment Text

DR. B.R.R. Kumar, A.M:

1. The present appeal has been filed by the Assessee against the order of the Ld. CIT(A)-1 Chandigarh dt. 29/09/2017.

2. In the present appeal Assessee has raised following grounds:

1. That the order of Hon'ble CIT(A) is bad, against the facts & Law.

2. That the Hon'ble CIT(A) has wrongly upheld the disallowance of expenses of Rs. 20,000/- paid for club membership and subscription.

3. That the Hon'ble CIT(A) has wrongly upheld disallowance of EPF and ESI expenses of Rs. 32,139/-

4. That the Hon'ble CIT(A) has wrongly disallowed part of the expenses incurred on running and maintenance of car.

5. That the Hon'ble CIT(A) has wrongly given direction to enhance the income of A.Y. 2014-15 by Rs. 5,51,000/- without appreciation of facts and without giving any show caused in this regard.

3. Ground no. 1 is general in nature.

4. Ground no. 2 not pressed.

5. Ground no. 3 relates to addition of Rs. 32,139/- on account of non- payment of EPF and ESI in the respective accounts. The Ld. AR submitted that it was paid before the due date of filing of the return. Hence as per provision to the Section 43B(b) this addition made by the Assessing Officer is not warranted and hence hereby directed to be deleted.

6. Ground no. 4 pertains to disallowance of expenses of Rs. 1,91,626/- on account of Car maintenance. The Ld. AR submitted that the payment of the car was made from the funds of the company and used by the company though the RC shows the name of the Director. All the running expenses were for the business of the company and claimed in the books of accounts and so as the depreciation.

7. Ld. DR relied on the order of the Ld. CIT(A) who restricted the disallowance to 1/5th of the total expenses.

8. Since the Car was purchased and used by the company wholly for the business purpose and Revenue has not brought anything on record to prove the non business use of the car, no disallowance is called for.

9. Ground No. 5 relates to enhancement of income for the A.Y. 2014-15. Brief facts of the issue are that the assessee has received advance payment from one entity namely Laxmi Trading Co. of Rs. 5,51,000/- on 01/02/2011 vide Cheque No. 463496 and the material was dispatched to Laxmi Trading Co. on 03/02/2011 through Shauryaveer Enterprises vide Bill No. 1366 and Vehicle No. H.P. 12C 2335 weighing 14.10 Tons. The documents pertaining to the transport of goods were produced and were accepted by the Revenue the fact of which was accepted by the Ld. CIT(A) also.

10. However, the Ld. CIT(A) directed that since the amount was squared off on 31/03/2014 with Shauryaveer Enterprises in 2014 it should be assessed in the A.Y. 2014-15. It was submitted before us, that the advance has received, and the material was supplied through the sister concern Shauryaveer Enterprise in the same year no addition was called for in the subsequent years. The assessee produced the ledger copies of Shauryaveer Enterprise in the books of account of the assessee

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, ledger copy of the assessee and the books of account of Shauryaveer Enterprise, and also copy of account of Laxmi Trading Co. in the books of the assessee which proves the completion of the transaction to the hilt. Hence the directions of the Ld. CIT(A) are found to be invalid. 11. As a result, the appeal of the Assessee is allowed.
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