Vitthal SSK Ltd. Vs DCIT (ITAT Pune)
In the case, the appellant, a co-operative society operating a sugarcane factory, had contested disallowances in their tax assessment. The NFAC, after deleting one major item of addition due to excess and unreasonable sugarcane purchase price, confirmed the remaining additions without thorough scrutiny. The ITAT took issue with this, stating that substantial relief on one item should not preclude justice on other matters raised in the appeal. They pointed out that the NFAC’s approach, dismissing other issues merely because one relief was granted, was not only unreasonable but also illegal.
The Vitthal SSK Ltd. vs DCIT case signals a critical insight for tax assesses and practitioners alike, emphasizing that all grounds raised in an appeal should be given due consideration, regardless of the relief granted on one issue. The ITAT has thus advocated for the fair adjudication of disputes, sending a clear message to the NFAC to uphold the tenets of justice in all matters.
FULL TEXT OF THE ORDER OF ITAT DELHI
This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 14.03.2023 for the assessment year 2009-10.
2. Briefly, the facts of the case are that the appellant is a Cooperative Society engaged in the business of running of sugarcane factory. The Return of Income for the assessment year 2009-10 was filed on 29.09.2009 and the same was revised on 08.06.2010 at Rs.Nil income after claiming set off of the brought forward losses. Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax, Circle-1, Solapur (‘the Assessing Officer’) vide order dated 16.12.2011 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.115,62,56,550/-. While doing so, the Assessing Officer made following disallowances :-
