Usha Martin Limited Vs ACIT (ITAT Ranchi)
Summary: Usha Martin Limited, earlier known as Usha Beltron Limited, filed an appeal before the Ranchi Bench of the Income Tax Appellate Tribunal against the order of the CIT(A), Ranchi dated 27.01.2017 in Appeal No. 411/Ran/Oth/10-11 for Assessment Year 2007-08. The appeal was heard and pronounced on 12.06.2025 by George Mathan, Judicial Member, and Ratnesh Nandan Sahay, Accountant Member.
At the hearing, the assessee did not press Ground Nos. 3 and 4, which were consequently dismissed as not pressed. The assessee had also filed additional grounds on 17.07.2019. It did not press its claim relating to education cess, resulting in dismissal of additional Ground Nos. 1.1, 1.2 and 1.3 as not pressed.
In relation to additional Ground No. 1.4 concerning double disallowance of general expenses of Rs.11,38,453/-, the assessee submitted that it had incurred miscellaneous expenses of Rs.4,10,64,429/- and had itself made a suo motu disallowance of Rs.2,27,69,056/-. The Assessing Officer nevertheless disallowed 5% of the entire miscellaneous expenditure, amounting to Rs.20,53,221/-. The assessee sought reduction of the disallowance by considering the amount already disallowed by it.
The Tribunal noted that the assessee’s own disallowance of Rs.2,27,69,056/- was far in excess of the total disallowance of Rs.20,53,221/- made by the Assessing Officer. It therefore deleted the Assessing Officer’s disallowance in its entirety and allowed additional Ground Nos. 1.4 and 1.5.
