Case Law Details
Jay Polychem India Ltd Vs ACIT (ITAT Delhi)
Introduction: The case of Jay Polychem India Ltd. vs. ACIT (Assistant Commissioner of Income Tax) involves an appeal by the assessee against an order issued by the Commissioner of Income Tax (Appeals) [CIT(A)] in New Delhi. The appeal concerns the disallowance of a portion of sales tax and other financial matters. This article provides a detailed analysis of the case and the directives issued by the Income Tax Appellate Tribunal (ITAT) in Delhi.
Detailed Analysis:
1. Background: Jay Polychem India Ltd., the assessee, filed an appeal against the CIT(A)’s order dated 30.08.2017. The grounds of appeal relate to various aspects, including the disallowance of a portion of sales tax, the disallowance of employee’s provident fund (EPF), the sustaining of interest levied under Section 234B of the Income Tax Act, and the continuation of penalty proceedings under Section 271(1)(c) of the Act.
2. Disallowed Sales Tax: The CIT(A) had sustained the addition of Rs. 24,00,000 out of Rs. 26,60,480, which represented an additional demand of sales tax paid by the assessee. The disallowance was primarily due to the non-submission of essential documents, such as challans, the VAT assessment order, and the demand notice before the revenue authorities.
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