ACIT CIRCLE 1(1)(1), AGRA V. AKASH GOYAL, AGRA

MA 19/AGR/2020

AI Insights

The case involves the Assistant Commissioner of Income Tax, Circle-1(1), Agra as the appellant and Shri Akash Goyal as the respondent. The dispute centered on the disallowance of interest amounting to Rs.49,38,149/- claimed by the assessee under section 57(iii) of the Income Tax Act, 1961. The Assessing Officer initially disallowed the interest claim, which was later contested and resulted in the deletion of the disallowance by the Tribunal. The Revenue's M.A. sought to rectify what it claimed were mistakes in the Tribunal's earlier decision, arguing that the Tribunal had not considered certain facts and arguments presented during the hearings. However, the Tribunal dismissed the M.A., stating that no apparent mistake from the record was found.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779294 (ITAT-AGRA)
• Duration Of Justice: 5 year(s) 7 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 18-02-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: NAVEEN GARG
• Keywords: Set aside
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, DB: AGRA (Through Physical / Virtual Hearing) BEFORE SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER M.A. No.19/Agr/2020 Arising Out of ITA No.234/Agr/2018 [Assessment Year: 2015-16] Asstt. Commissioner of Income Tax, Circle-1(1), Agra. VS Shri Akash Goyal, 1/173B, Bagh Farzana, Civil Lines, Agra PAN-ABVPG6220A Revenue Assessee Revenue by Shri Anil Kumar, Sr. DR Assessee by Shri Naveen Garg, Adv. Date of Hearing 18.07.2025 Date of Pronouncement 13.10.2025 ORDER PER BRAJESH KUMAR SINGH, AM: This Miscellaneous Application (hereinafter referred to as the ‘MA’) has been filed by the Revenue against the order dated 04.11.2019 in ITA No.234/Agr/2018. The assessee filed his return of income on 23.03.2016, declaring total income of Rs. 30,04,530/-. The case was selected for limited scrutiny. The Assessing Officer Printed from counselvise.com MA No.- 19/Agr/2020 Akash Goyal 2 (AO), after examining the facts of the case in the assessment order, passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) on 07.02.2017, disallowed interest amounting to Rs.49,38,149/-, on the ground that the assessee failed to produce any material on record to establish that the said interest expenditure was done bonafidelyfor the purpose of earning income to claim deduction u/s 57(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A), who dismissed the appeal of the assessee. 3. Further aggrieved, the assessee preferred an appeal before the Tribunal, which deleted the said disallowance vide its order dated 04.11.2019. 4. Against the said order of the Tribunal, the Revenue has filed the present Miscellaneous Application (hereinafter referred as “M.A.”), in which mistake has been pointed out by the Department in para nos. 2 and 3 of the M.A. application. The relevant extract of the MA filed by the Revenue are reproduced as under: Printed from counselvise.com MA No.- 19/Agr/2020 Akash Goyal 3 “The appellant is an individual and in his return he has disclosed income from house property of Rs Nil and income of Rs 2,03,113/- received as interest and remuneration from one of his partnership firms. Besides, income from other sources of Rs 29,45,261/- has been declared by him in his return of income. During the impugned year, assessment has been completed under section 143(3) vide order dated 07.12.2017 determining the assessed income at Rs 79,42,679/- as against the returned income of Rs 30,04,530/-. The sole addition to the appellant's income is that of Rs 49,38,149/- that has been made by the A.O. by disallowing the appellant's claim under section 57(iii) of deduction on interest paid by the latter, against the interest received by him. Aggrieved with the assessment order, assessee filed appeal before the Hon'ble CIT(A)-1, Agra and Ld.CIT(A)-1, Agra vide their order dated 31.01.2018 dismissed the appeal of assessee. Aggrieved with this order, assessee filed appeal before the Hon'ble ITAT, Agra Bench, Agra and Hon'ble ITAT, Agra Bench, Agra vide their order ITA No.234/Agra/2018 dated 04.11.2019 allowed the appeal in favour of the assessee without considering the facts produced by the Ld. Commissioner of Income Tax (DR), Agra during the course of hearing. It also seen that Hon'ble ITAT have not properly dealt with arguments made by the Ld. CIT(DR) during the course of hearing. This being a mistake apparent from record needs to be rectified. The Hon'ble ITAT, Agra Bench, Agra has also not considered the synopsis of the Sr. DR, which was furnished to the bench with a copy to the assessee's counsel, on the aspect of facts that there existed no nexus between funds borrowed and funds claimed to be invested/advances. The ITAT was required to arrive at a finding on fact on the existence or otherwise of the said nexus, conscious of the fact, that there existed no determination of nexus by CIT(A), on facts as placed before the Bench by Sr.DR. Although, in the open court, it was announced that the matter is being set aside for an examination on facts, but the facts have not been examined by ITAT, even as the case has been adjudicated.” 4.1 The above M.A. filed by the Department has been carefully perused. Upon perusal, it is seen that no mistake apparent from the record within the scope of the section 254(2) of the Act, has been pointed out in the said application. Accordingly, the Printed from counselvise.com MA No.- 19/Agr/2020 Akash Goyal 4 Miscellaneous Application filed by the Department is not maintainable and is, therefore, dismissed. 5. In the result, M.A. filed by the Revenue is dismissed. Order pronounced in the open court on 13th October, 2025. Sd/- Sd/- [SUNIL KUMAR SINGH] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 13.10.2025. Pooja Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra, Printed from counselvise.com "