IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER Assessment years: 2011-12 & 2013-14 Kariganur Mineral Mining Vs. The Joint Commissioner Industry (100% EOU), of Income Tax, Wahab Group, “Wahab Tower”, Bellary Range, No.185, 3^rd Floor, Infantry Road, Bellary.

Cantonment, Bellary – 583 104.

PAN: AAIFK 8136G APPELLANT RESPONDENT Appellant by : Shri H. Siva Prasad Reddy, ITP &

Shri B.S. Balachandran, Advocate Respondent by : Smt. N. Hemalatha, CIT(DR)(ITAT), Bengaluru.

Date of hearing : 29.01.2026 Date of Pronouncement : 27.04.2026

O R D E R

Per Prashant Maharishi, Vice President

1. Kariganur Mineral Mining Industry (100% EOU), the assessee/appellant, has filed two appeals concerning similar matters for the assessment years 2011–12 and 2012–13. Accordingly, both appeals are addressed and resolved through this consolidated order.

2. ITA No. 1025/Bangalore/2024 pertains to the assessment year 2011–

12 and is filed against the appellate order issued by the National Faceless Appeal Centre, Delhi (NFAC) [ld. CIT(A)] dated 23 March 2024. In this order, the appeal submitted by the assessee challenging the assessment order under section 143(3) of the Income-tax Act, 1961 [the Act], dated 31 March 2044, as passed by the JCIT, Bellary Range, Bellary [ld. AO], was dismissed.

3. The assessee has raised the following grounds of appeal :- “1. The impugned assessment order dated, 31-03-2014 passed u/s 143(3) of the Act is arbitrary and opposed to the facts of the case; and therefore, liable to be set aside as void.

NON-EOU ADDITIONS.

2. The learned AO erred in disallowing the expenditure of Rs.3,79,79,550/- incurred by the assessee for construction of residential houses to the persons whose houses were destroyed during the unprecedented floods as per the appeal and scheme of Government of Karnataka.

3. The learned AO erred in disallowing 10% of vehicle hire and other expenses amounting to Rs.43,96,173/-

4. The learned AO erred in disallowing 20% of Transportation charges amounting to Rs.68,33,314/-

5. The learned AO erred in disallowing Transportation charges of Rs.2,73,33,366/- applying section 40(a)(ia) of the Act.

100% EOU

6. The learned AO erred in disallowing the expenditure of Rs.84,93,150/- incurred by the assessee for construction of residential houses to the persons whose houses were destroyed during the unprecedented floods as per the appeal and scheme of Government of Karnataka.

7. The learned AO erred in disallowing Transportation charges of Rs.4,02,47,731/- applying section 40(a)(ia) of the Act.

8. The learned AO ought to have appreciated that the enhanced income of the 100% EOU consequent to the additions/disallowances made is eligible for exemption u/s10B of the Act.

GENERAL.

9. The assessee-Appellant craves leave to add or revise or amend, or substitute or delete any Ground at the time of the hearing before the Hon'ble Tribunal.

For these and further Grounds of Appeal that may be taken at the time of hearing, it is prayed that the Hon'ble Tribunal may be pleased to allow the appeal-in the interest of the equity and justice.”

4. The facts, in brief, indicate that the assessee, a partnership firm engaged in the business of trading iron ore, filed its return of income on 30 September 2011, declaring a total income of Rs. 21,92,86,600, which was subsequently selected for scrutiny. It has two units, one is normal trading/manufacturing unit and another is hundred percent export-oriented unit eligible for deduction under section 10 B of the income tax act. Following the issuance of notice under section 143(2) of the Act, an assessment order was passed, determining the total income of the assessee at Rs. 33,60,92,120.

5. The ld. AO has made the following additions to the total income of the assessee:-

(i) Disallowance of Rs.3,79,79,550 being expenditure incurred by the assessee of social welfare.

(ii) Addition of Rs.43,96,173 being expenditure incurred by the asse