आयकर अपील(cid:9)य अ(cid:10)धकरण, ‘सी’ (cid:14)यायपीठ, चे(cid:14)नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI (cid:21)ी एबी ट(cid:9) वक(cid:26), (cid:14)या(cid:27)यक सद(cid:29)य एव ं (cid:21)ी एस. आर. रघुनाथा, लेखा सद(cid:29)य के सम$

BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 आयकर अपील सं./ITA No.:2004/Chny/2025 (cid:27)नधा%रण वष % / Assessment Year: 2017-18 अपीलाथ’ क* ओर से/Appellant by : Ms. S. Vidya, C.A.

()यथ’ क* ओर से/Respondent by : Ms. R. Anitha, Addl. C.I.T.

सुनवाई क* तार(cid:9)ख/Date of Hearing : 04.12.2025 घोषणा क* तार(cid:9)ख/Date of Pronouncement : 05.01.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM:

This appeal by the Assessee for Assessment Year (A.Y.) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short ld.CIT(A)] dated 29.11.2024 against an assessment framed by Assessing Officer [AO] u/s.143(3) of the Income Tax Act, 1961 (in short ‘the Act’) on 17.12.2019.

2. At the outset, we find that there is a delay of 167 days in appeal filed by the assessee for which an affidavit and a petition for condonation of delay, setting out the reasons for such delay, has been filed. After considering the affidavit and the petition filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication.

3. The sole ground of appeal of the assessee is disallowance of Rs.30,72,259/- pertaining to the cash purchase of ice for preserving the sea food u/s.40A(3) of the Act stating that the same is not covered under Rule

6DD(f) of the Income Tax Rules, 1962.

4. The brief facts emanating from the records of the case are that the assessee is a company filed its return of income on 26.10.2017 and revised the same on 02.06.2018 admitting a total income of Rs.1,28,06,040/-. The case of the Assessee was selected for scrutiny assessment through CASS and accordingly the statutory notices were issued to the assessee. In the scrutiny assessment order, the AO has given a finding that the Assessee has spent Rs.32,20,459/- being Ice purchase and the payment for the same has been made by way of cash to the tune of Rs.30,72,259/- and only Rs.1,48,200/- has been paid by cheque. Therefore, the AO disallowed the said sum paid by cash as violation of the provisions of section 40A(3) of the Act r.w. Rule 6DD and passed an order u/s.143(3) of the Act on 17.12.2019 by holding as under:

5. DISALLOWANCE OF EXPENSES u/s. 40 A (3):

5.1. On perusal of the audited financials of the assessee, it is found that vide schedule 16, cost of material consumed, the assessee had claimed an amount of Rs.32,20,459/- being ice purchase. Vide Notice u/s. 142(1) of the Act dated 15.10.2019, the assessee was requested to provide details for the same. Vide letter dated 29.11.2019, the assessee submitted the details called for. On verification of the details submitted by the assessee, it is found that the assessee enclosed a ledger extract showing the following:

Ice purchase Cash Rs.30,72,259/- Ice purchase Cheque Rs. 1,48,200/-

5.2. There are no other details available in the records or any further details submitted by the assessee e