CENTEC RRR SYSTEMS AND SENSORS PVT LTD,MUMBAI V. ITO 15(1)(3), MUMBAI

ITA 2755/MUM/2025

AI Insights

The case involves Centec RRR Systems and Sensors Pvt. Ltd., which appealed against the order of the CIT(A) concerning the assessment year 2012-13. The primary issues in the appeal included the dismissal of the assessee's appeal by the CIT(A) without proper appreciation of facts, the upholding of the assessment order under section 143(3), and the incorrect classification of interest income from fixed deposits as 'Income from Other Sources' rather than 'Business Income'. The Tribunal noted that the assessee did not appear for the hearing and failed to provide any new facts or documents to challenge the findings of the CIT(A). Consequently, the Tribunal dismissed the appeal, agreeing with the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668727 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAM KRISHN KEDIA
• Assessee Lawyers: LETTER FILE DATED ..
• Keywords: Business income
• Section: 148; 143(3); 139; 37(1)

Judgement Text

" |आयकर अपीलीय न्यायाधिकरण न्यायपीठ, म ुंबई| IN THE INCOME-TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER आयकर अपील सुं./ITA No. 2755/MUM/2025 (नििाारण वर्ा / Assessment Year :2012-13) Centec RRR Systems and Sensors Pvt. Ltd. W 13, MIDC Industrial Area, Pawne, Navi Mumbai, Maharashtra- 400705 v/s. बिाम ITO 15(1)(3), Aayakar Bahvan, Mumbai, Maharashtra-400020 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAECC2397P Appellant/अपीलार्थी .. Respondent/प्रनिवादी निर्ााररती की ओर से /Assessee by: Letter file dated 13.06.2025 राजस्व की ओर से /Revenue by: Shri Ram Krishn Kedia (Sr. DR) स िवाई की िारीख / Date of Hearing 17.06.2025 घोर्णा की िारीख/Date of Pronouncement 24.06.2025 आदेश / O R D E R PER SANDEEP GOSAIN [J.M.]:- This appeal is filed by the assessee against the order of the Learned Additional/Joint Commissioner of Income-tax (Appeals), Gurugram-1 [hereinafter referred to as “CIT(A)”] dated 07.03.2025 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2012-13. 2. The assessee has raised the following grounds of appeal: P a g e | 2 ITA No. 2755/Mum/2025 A.Y. 2012-13 Centec RRR Systems and Sensors Pvt. Ltd. “1. That the learned Commissioner of Income Tax (Appeals) [CIT(A)] erred in dismissing the appeal filed by the appellant without properly appreciating the facts and the supporting documents submitted during the appellate proceedings. 2. That the learned CIT(A) erred in upholding the assessment order passed under section 143(3) of the Income Tax Act, 1961, despite the fact that the appellant had duly filed the return of income in response to notice under section 148. 3. That the learned CIT(A) erred in holding that the appellant had not commenced its business operations without considering the documentary evidence provided, including Sales Tax and VAT Returns, ledger accounts, and other financial documents. 4. That the learned CIT(A) erred in confirming the action of the Assessing Officer (AO) in taxing the interest income from fixed deposits as 'Income from Other Sources' rather than considering it as part of business income. 5. That the learned CIT(A) failed to appreciate that the appellant was in a preparatory stage of business, and the interest income was generated from funds that were to be used for business purposes. 6. That the learned CIT(A) erred in upholding the disallowance of expenses under section 37(1) of the Act without properly considering the appellant's submissions that such expenses were directly related to business operations and were incurred in the normal course of business. 7. That the learned CIT(A) failed to consider that the AO had not provided any substantive basis for rejecting the appellant's claim regarding the commencement of business operations. 8. That the learned CIT(A) erred in not allowing amortization of expenses as per section 35D of the Income Tax Act. 9. That the order passed by the learned CIT(A) is bad in law and contrary to the facts of the case, and therefore, requires to be quashed.” 3. None appeared on behalf of the assessee when the case was called, even no application for seeking adjournment has been filed. From the records, I notice that the service of the present appeal was effected through RPAD and also through email. On the other hand, Ld. DR present in the court and is ready P a g e | 3 ITA No. 2755/Mum/2025 A.Y. 2012-13 Centec RRR Systems and Sensors Pvt. Ltd. to advance arguments. Therefore, I have decided to proceed with the hearing of the case exparte. 4. In this case, the interest from the fixed deposit was treated as 'Income from Other Sources' instead of 'Business Income' on the ground that the assessee, being a private company, was a non-filer of return voluntarily u/s 139 of the Act, but had filed a return of income in response to a notice u/s 148 of the Act. 5. In order to substantiate that the assessee had commenced its business operations, no supporting documents were filed, such as sales tax and VAT returns, a copy of the ledger account for expenses, and details of revenue from operations. Therefore, expenses were disallowed. Furthermore, no new facts or documents have been placed before us to controvert the findings recorded by the Ld. CIT(A). Therefore, I find no reason to interfere with or deviate from the findings recorded by the Ld. CIT(A). Accordingly, the appeal of the assessee stands dismissed. 6. In the result, the appeal of the assessee is dismissed. Order pronounced in the open court on 24.06.2025. Sd/- Sd/- SANDEEP GOSAIN (न्यानयक सदस्य/JUDICIAL MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 24.06.2025 P a g e | 4 ITA No. 2755/Mum/2025 A.Y. 2012-13 Centec RRR Systems and Sensors Pvt. Ltd. अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "