ACIT, CIR-2(1), RAIPUR V. CHHATTISGARH STATE ELECTRICITY BOARD DAGANIA, RAIPUR

MA 172/MUM/2020

AI Insights

The case revolves around an application by the Revenue seeking rectification of an earlier Tribunal order concerning the disallowance of certain consultancy charges claimed by M/s. Chhattisgarh State Electricity Board. Initially, the Tribunal had restored all issues to the Assessing Officer for a fresh decision, but the Revenue contended that the specific issue of disallowance of consultancy charges was not explicitly restored, leading to the current application. The Tribunal's decision clarified that all issues, including the disputed disallowance, were indeed restored to the Assessing Officer, thereby addressing the Revenue's concerns.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32014 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2003-2004
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ASIF KAR MALI
• Section: 254(2); 28; 43B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE JUSTICE (RETD.) C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER MA NO. 172/MUM/2020 (arising out of ITA NO. 59/NAG/2007) : A.Y. : 2003-04 Asst. Commissioner of Income Tax – 2(1), Central Revenue Building, Civil Lines, Raipur 492 001. (Applicant) Vs. M/s. Chhattisgarh State Electricity Board (Through CG State Power Holding Co. Ltd.) Office of General Manager-Finance, Ground floor, Vidyut Seva Bhawan, Daganiya, Raipur 492 001. PAN : AABCC7876Q (Respondent) Applicant by : Ms. Krupa Toprani Respondent by : Shri Asif Karmali Date of Hearing : 21/02/2025 Date of Pronouncement : 21/02/2025 O R D E R PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT : This is an application by the Revenue filed under Section 254(2) of the Income Tax Act, 1961 seeking rectification of the order dated 12.02.2018 passed in ITA No. 59/NAG/2007. 2. We have heard parties. Perused record. 3. ITA No. 59/NAG/2007 was filed by the Revenue challenging the order of learned Commissioner of Income Tax (Appeals) (‘CIT(A)’ for short) deleting certain 2 MA NO. 172/Mum/2020 M/s. Chhattisgarh State Electricity Board disallowances/additions made by the learned Assessing Officer. Vide ground no. 3, the following challenge was raised by the Revenue :- “III. The ld CIT(A) has erred in deleting the disallowances/additions under the following heads, violating the provisions of rule 46A of the I.T. Rules in the following a) Disallowance on account of bonus payment u/s 36(1)(ii) as bonus for the assmt year in question only is admissible in computation of profits u/s 28 of the Act. In the absence of proper evidence of actual date of payment, (claimed to have been paid in the month of October 2002/October 2003) the CIT(A) was not justified in allowing the bonus payment. Rs. 4,51,92,308/- b) Disallowance of consultancy charges out of Rs.1,89,00,000/- in the absence of documentary evidence Rs. 1,00,00,000/- c) Addition made on account of interest paid to financial institutions/banks u/s 43B Rs. 150,95,61,316/-” We are presently concerned with ground no. III(b). 4. It was contended that the said deletion was violative of provisions of Rule 46A of the I.T. Rules. 5. A perusal of the order dated 12.02.2018 would indicate that the Tribunal had restored all the issues to the Assessing Officer for deciding them afresh on the basis of documents produced. The only contention in this application is that there was no adjudication of ground no. III(b) pertaining to disallowance of consultancy charges out of Rs.1,89,00,000/-. The disallowance was to the extent of Rs. 1,00,00,000/-. It transpired during the course of hearing that after the issues were restored to the file of Assessing Officer, the Assessing Officer has passed an order excluding on the issue of disallowance of consultancy charges. This was presumably on the view that the issue 3 MA NO. 172/Mum/2020 M/s. Chhattisgarh State Electricity Board as to disallowance of consultancy charges was not restored to the file of the Assessing Officer by order dated 12.02.2018. The Revenue is precisely aggrieved by the same. 6. Upon hearing the learned counsel for parties, we find that in para 11 the co- ordinate Bench had considered the rival contentions and has restored the issues to the file of Assessing Officer. In that view of the matter, we find that all the issues, including the issue of disallowance of consultancy charges, were restored to the file of Assessing Officer. In order to obviate any further difficulty or ambiguity, we find that the relevant observation in para 11 of the order would read as under :- “11. ………..We therefore consider it fit and proper to restore all the issues to the file of the AO to re-examine all these evidences and allow the deduction accordingly……….” 7. The application is disposed of in the aforesaid terms. This order shall be read alongwith order dated 12.02.2018. Order pronounced in the open court on 21/02/2025. Sd/- Sd/- (B.R. BASKARAN) (JUSTICE (RETD.) C.V. BHADANG) ACCOUNTANT MEMBER PRESIDENT Mumbai; Dated : 21/02/2025 SSL Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(Judicial) 4. PCIT 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai "