A S CARGO MOVERS PRIVATE LIMITED,CHENNAI V. ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(1), CHENNAI, CHENNAI

MA 97/CHNY/2025

AI Insights

The case involves multiple Miscellaneous Applications (MAs) filed by both the assessee, A.S. Cargo Movers Private Limited, and the Revenue, concerning the orders related to the assessment years 2015-16 and 2017-18. The primary issues revolved around the correction of typographical errors in the tribunal's previous orders and the appropriate amount of interest disallowance made by the AO under section 24(b) of the Income Tax Act, 1961. The tribunal consolidated the hearings due to the similarity in facts and issues across the MAs. The tribunal corrected the typographical errors as requested by the assessee and acknowledged the Revenue's contention regarding the excessive relief granted in the previous orders, leading to the remittance of the matter back to the AO for verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780186 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 17-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: N. QUADIR HOSEYN
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./MA No.96 / Chny / 2025, धििाारण वर्ा /Assessment Year: 2017-18 (ITA No.1796 / Chny / 2024) A.S.Cargo Movers Private Limited, New No.173, Old No.103, 9th Floor B Block, Navins Presidium, Nelson Manickam Road, Aminjikarai, Chennai-600 029. [PAN: AAACA7739D] Vs Assistant Commissioner of Income Tax, Corporate Circle-1(1), Chennai. आयकर अपील सं./MA No.97 / Chny / 2025, धििाारण वर्ा /Assessment Year: 2015-16 (CO No.56 / Chny / 2024) A.S.Cargo Movers Private Limited, New No.173, Old No.103, 9th Floor B Block, Navins Presidium, Nelson Manickam Road, Aminjikarai, Chennai-600 029. [PAN: AAACA7739D] Vs Assistant Commissioner of Income Tax, Corporate Circle-1(1), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./MA No.110 / Chny / 2025, धििाारण वर्ा /Assessment Year: 2017-18 (ITA No.1796 / Chny / 2024) Assistant Commissioner of Income Tax, Corporate Circle-1(1), Chennai. A.S.Cargo Movers Private Limited, New No.173, Old No.103, 9th Floor B Block, Navins Presidium, Nelson Manickam Road, Aminjikarai, Chennai-600 029. [PAN: AAACA7739D] Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 2 - of 8 (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.N.Quadir Hoseyn, Advocate & Dr.L.Natarajan, C.A. प्रत्यर्थी की ओर से /Revenue by : Ms.R.Anitha, Addl.CIT सुिवाई की तारीख/Date of Hearing : 18.07.2025 घोर्णा की तारीख /Date of Pronouncement : 06.10.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : The MAs bearing MA No.96/Chny/2025 and MA No.97/Chny/2025 have been filed by the assessee requesting for recalling of the order in ITA 1796/Chny/2024 and CO-56 / Chny / 2024. Similarly, MA No.110 / Chny / 2025 has been filed by the Revenue contesting the order bearing No.ITA/1796/Chny/2024 dated 24.01.2025 Since, the facts are identical and issues are common, for the sake of convenience the above MAs are heard together and are being disposed off by this consolidated order. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. MA No.96/Chny/2025 and MA No.97/Chny/2025 2.0 It has been submitted that there exists an inherent mismatch in the details of appellant / respondent and the corresponding result indicated in para 17 on page 17 of the order. It was accordingly requested that the impugned typographical mistakes be rectified. The Ld.DR did not object to the proposed request. Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 3 - of 8 3.0 We have considered the rival submissions in the light of material available on records. Upon consideration of the facts on records, the tabular result in para 17 on page 17 is ordered to be read as under: ITA Nos / CO Nos. Appeal By Assessment Year Result ITA No.1688 /Chny/2024/ Revenue 2015-16 Dismissed ITA No.1796 /Chny/2024 Revenue 2017-18 Dismissed CO No.56 /Chny/2024 Assessee 2015-16 Dismissed 4.0 The MA Nos.96 & 97 / Chny / 2025 raised by the assessee are therefore allowed. MA No.110 / Chny / 2025 5.0 The impugned Miscellaneous Application has been filed by the Revenue qua order in ITA No.1796 /Chny/2024 dated 24.01.2025 for AY-2017- 18. The ITA No.1796 supra was filed by the Revenue contesting the order of Ld.CIT(A) in according relief to the assessee. Thus, the Revenue had, inter-alia, contested for relief of Rs.8,45,03,079/- accorded by the Ld.CIT(A) qua an addition of even amount, made by the Ld.AO invoking provisions of section 24(b) of the Act. Through the present MA No.110/Chny/2025 supra, Revenue has contested that the amount of interest disallowance deserves to be restricted to Rs.95,65,360/- and not Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 4 - of 8 Rs.8,45,03,079/- as ordered by this tribunal. It has been argued that the Revenue had never contested the amount of Rs.8,45,03,079/- and that it had challenged only the amount of Rs.95,65,360/-. A case of excessive relief has thus been argued by the appellant Revenue. 6.0 Considering the overall complexity of the matter, we deem it appropriate to revisit the factual matrix of the case. In his order u/s 143(3) dated 30.12.2019 the Ld.AO had made an addition invoking provisions of section 24(b) of the Act. The Ld.AO had noted that the assessee was paying interest qua some immovable properties in respect of which no rental income was offered. As per discussions in first para on page 7 of his order, he concluded that the borrowings were not utilized for the purposes taken and hence corresponding claim of interest was inadmissible u/s 24(b) of the Act. Pertinently, as evident from para 1.7 on page 7 of the order the Ld.AO made the disallowance of Rs.8,45,03,079/- observing that “…for the reasons stated above, assessee’s claim of interest amounting to Rs.8,45,03,079/- is withdrawn and not allowed to be reduced from the income of the house property and the income is reworked as under:-…”. Accordingly, the Ld.AO reworked income from house property at Rs.9,24,30,425/-. The assessee had challenged the impugned addition of Rs.8,45,03,079/- before the High pitched Local Committee which observed that “…even assuming the Aps Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 5 - of 8 version (apparently a typographical error and AP refers to AO) is correct, she can at the maximum disallow interest paid to IOB amounting to Rs.95,65,360/- not the entire interest amount of Rs.8,45,03,079/- which is interest paid to other bank loans. To this extent the assessment is regarded as High pitched….”. The Ld.CIT(A) considered the facts of the case and after placing reliance upon the provisions of the Act as well as judicial precedents governing the matter concluded that the addition made by the Ld.AO of Rs.8,45,03,079/- is unwarranted. While doing so, the Ld.CIT(A) observed as under on page 12 of his order:- “…Similarly in the instant case, if the version of the AO is considered, Rs. 95,65,360/- pertains to the property on which the appellant could not fetch any rental income and hence, in the light of the above discussion the interest on such loans taken against such property should be allowed as deduction. With regards to the remaining interest, the appellant has duly submitted the details of the interest certificate and other documents which has been duly accepted by the AO in its order. Hence, in the light of the above discussion and considering the submission made and after perusal of the documents submitted and taking into account the entire conspectus of this case, I see no reason to uphold with the findings of the assessing officer regarding the disallowance made on account of interest expenses amounting Rs. 8,45,03,079/- in the assessment order. Hence, this ground of appeal is Allowed….” Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 6 - of 8 7.0 The Ld.Counsel for the appellant defended the order of the Ld.CIT(A). 8.0 We have heard the rival submissions in the light of material available on records. The only controversy i.e. seminal to the present MA is as to whether the amount of interest disallowance is to be made at Rs.8,45,03,079/- or Rs.95,65,360/-. We have noted that appellant Revenue in ITA No.1796/Chny/2024 has not specifically indicated any amount in its ground of appeal No.iii appended with the Form-36. It merely alluded towards interest disallowance qua loan from Indian Overseas Bank(IOB). We have also noted that the Ld.AO on page 7 of his order made interest disallowance of Rs.8,45,03,079/-. Notwithstanding the same, we have noted that both the High pitched Local Committee as well as the Ld.CIT(A) have alluded towards the amount of Rs. 95,65,360/-. The Ld.CIT(A) in his observations supra has also concurred qua the amount of Rs. 95,65,360/-. Accordingly, in the interest of justice, we are of the considered view that there exists a need for limited verification of the facts and figures concerning the amount of Rs. 95,65,360/- above at the end of Ld.AO. Accordingly, we remit the matter to the file of Ld.AO for limited verification of the issue. The addition / disallowance made by the Ld.AO of Rs.8,45,03,079/-, may be restricted to Rs. 95,65,360/- so far as the same pertains to Indian Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 7 - of 8 Overseas Bank(IOB). The appeal of the Revenue in ITA No.1796/Chny/2024 qua ground of appeal no.iii may therefore be deemed as allowed for statistical purposes. Accordingly the MA no.110/Chny/2025 raised by the Revenue is allowed for statistical purposes.. 9.0 In the result, the MAs of the Revenue and assessee are decided as under:- MA Nos Assessment Year Appeal By Result MA No.96/Chny/2025 2017-18 Assessee Allowed MA No.97/Chny/2025 2015-16 Assessee Allowed MA No.110/Chny/2025 2017-18 Revenue Allowed for statistical purposes Order pronounced on 6th , October - 2025. Sd/- Sd/- (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member (अमिताभ शुक्ला) (Amitabh Shukla) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनाांक/Dated: 6th , October - 2025. KB/- Printed from counselvise.com MAs 96, 97 & 110/Chny/2025 Page - 8 - of 8 आदेश की प्रतिललपप अग्रेपिि/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. विभागीय प्रविविवि/DR 5. गार्ड फाईल/GF Printed from counselvise.com "