APLAB LIMITED,BELAPUR ROAD DIGHA, NAVI MUMBA V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1 THANE, WAGLE INDUSTRIAL ESTATE, ASHAR IT PARK

CO 259/MUM/2024

AI Insights

The case involves the Deputy Commissioner of Income Tax, Circle-1 (Appellant) and APLAB Limited (Respondent/Cross Objector), concerning the assessment year 2017-18. The dispute arose from an adhoc addition made by the AO, who disallowed 20% of the aggregate expenses claimed by the assessee due to non-response to notices. The assessee appealed to the Ld CIT(A), which granted partial relief after the AO failed to provide a remand report. Both parties appealed to the Tribunal, which found that neither the AO nor the Ld CIT(A) had properly examined the expenses claimed by the assessee against the relevant vouchers. Consequently, the Tribunal decided that the issues require a fresh examination by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37965 (ITAT-MUMBAI)
• Appeal Type: Cross Objection
• Pronouncement Date: 24-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K.R. SUBHASH
• Assessee Lawyers: M. SUBRAMANIAM
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “A” BENCH : MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER ITA No. 5434/Mum/2024 C.O. No. 259/Mum/2024 (Arising out of ITA No. 5434/M/24) : : A.Y. : 2017-18 A.Y. : 2017-18 Deputy Commissioner of Income Tax, Circle-1, B-Wing, 6th Floor, Ashar IT Park, Road No. 16Z, Wagle Industrial Estate, Thane (W), Maharashtra (Appellant) Vs. APLAB Limited, Plot No. 12, TTC Industrial Area, Thane Belapur Road Digha, Navi Mumbai PAN : AAACA1030H (Respondent/Cross Objector) For Assessee : Shri M. Subramaniam For Revenue : Dr. K.R. Subhash, CIT-DR Date of Hearing : 24-02-2025 Date of Pronouncement : 24-02-2025 O R D E R PER B.R. BASKARAN, A.M : The appeal of the Revenue and the cross objection filed by the assessee are directed against the order dated 12-08-2024 passed by the Ld CIT(A), NFAC, Delhi and they relate to the assessment year 2017- 18. The Ld CIT(A) granted partial relief to the assessee in respect of 2 ITA No. 5434/Mum/2024 C.O. No. 259/Mum/2024 adhoc addition made by the AO. Hence both the parties are in appeal before the Tribunal. 2. The assessee company is carrying on business in various sectors like telecommunication, IT, retail banking, retail fuel dispensing and power control & conditioning. The assessee did not respond to the notice issued by the AO and hence the AO completed the assessment by disallowing 20% of the aggregate expenses amounting to Rs.86.07 crores claimed by the assessee, i.e., a sum of Rs.17.22 crores was disallowed by the AO. 3. The assessee challenged the assessment order by filing appeal before the Ld CIT(A). The assessee also raised various contentions against the adhoc addition and also furnished certain details. It was submitted that the assessee tried to upload various details that were called for by the AO, but they could not be uploaded due to technical glitches. In view of the above submissions, the Ld CIT(A) called for a remand report from the AO, but the AO did not furnish the same. Hence, the Ld CIT(A) proceeded to examine various expenses claimed by the assessee and accordingly granted partial relief to the assessee. Hence, both the parties are appeal in before the Tribunal. 4. We heard the parties and perused the record. We notice that the Ld CIT(A) did not physically examine the various expenses claimed by the assessee vis-à-vis the relevant vouchers and proceeded to give partial relief on adhoc basis. As noticed earlier, the assessee could not furnish the details that were called for by the AO, as according to the assessee, it could not upload the details due to technical glitches. At the outset, it is noticed that the claim of various expenses was not actually examined either by the AO or by Ld CIT(A). Under these set of facts, we are of the view that entire issues require fresh examination at the end of the AO. 3 ITA No. 5434/Mum/2024 C.O. No. 259/Mum/2024 5. Accordingly, we set aside the order passed by the Ld CIT(A) and restore all the issues to the file of the AO for examining them afresh. We also direct the assessee to fully co-operate with the AO for expeditious completion of the assessment. 6. In the result, the appeal of the Revenue and the cross objection of the assessee are treated as allowed for statistical purposes. Order pronounced in the open court on 24-02-2025 Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 24-02-2025 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, ITAT, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "