DCIT Vs New Satman Transport Company (ITAT Ranchi)
Disallowance of Coal Transportation Charges Deleted — Revenue Appeal Dismissed
The Ranchi Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A)/NFAC deleting the disallowance of ₹2.04 crore made out of total coal transportation charges of about ₹16.02 crore.
The Assessing Officer had disallowed the expenditure mainly on the ground that notices issued under Section 133(6) to certain truck owners were not complied with, and that the assessee failed to produce contracts and PAN details of the truck owners.
The Tribunal noted that the CIT(A) had deleted the addition after recording clear findings of fact, namely that:
- TDS was deducted on payments to truck owners, which itself presupposes availability of PAN details;
- Payments were made through banking channels and duly reconciled with ledger accounts;
- TDS returns were filed by the assessee;
- There were no written contracts, as trucks, tippers, and payloaders were hired from the open market, and vehicles operated within the mining area.
Since the Revenue failed to dislodge these factual findings or bring any contrary material on record, the ITAT held that the deletion of disallowance was justified. A separate ground raised by the Revenue regarding alleged cash payment was found non-existent in the CIT(A)’s order and hence not adjudicated.
Accordingly, the Revenue’s appeal was dismissed in entirety.
FULL TEXT OF THE ORDER OF ITAT RANCHI
1. This is an appeal filed by the revenue against the order of the ld. CIT(A), NFAC, Delhi in Appeal No. NFAC/2020-21/10215105 dated 22/11/2024 for the A.Y. 2021-22.
