DALMIA BHARAT LIMITED,DALMIAPURAM V. ASSISTANT COMMISSIONER OF INCOME TAX, ROURKELA, CIRCLE, ODISHA, ROURKELA

ITA 218/CTK/2025

AI Insights

This case involves an appeal by Dalmia Bharat Limited against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2017-2018. The primary issues in the appeal were the diversion of income pursuant to a scheme of amalgamation and the non-granting of TDS credit in the computation, which were linked to the issue of income diversion. The CIT(A) had admitted the additional ground regarding income diversion but did not adjudicate it on merits, nor did it specifically address the TDS issue, which was only set aside to the AO. The Tribunal found that these issues were not adequately addressed and thus restored them to the CIT(A) for a detailed examination and a speaking order.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833579 (ITAT-CUTTACK)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 29-03-2025
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIM KUMAR CHAKRABORTY
• Assessee Lawyers: NITESH AGARWAL
• Keywords: Set aside; Diversion of income; TDS; Scheme of amalgamation

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.218/CTK/2025 (नििाारण वर्ा / Assessment Year : 2017-2018) Dalmia Bharat Limited, Dalmiapuram, Lalgudi Taluk, Palanganatham BO Palanganatham Tiruchirappalli, Tamil Nadu, India-621651 Vs ACIT, Rourkela Circle, Rourkela, Odisha PAN No. : AABCO 8750 F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Nitesh Agarwal, AR राजस्व की ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR सुनवाई की तारीख / Date of Hearing : 03/02/2026 घोषणा की तारीख/Date of Pronouncement : 03/02/2026 आदेश / O R D E R Per George Mathan, JM : This is an appeal filed by the assessee against the order dated 24.01.2025 passed by ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-2018. 2. It was submitted by the Ld.AR that the assessee had raised an additional ground in regard to the issue of diversion of income pursuant to the scheme of amalgamation. It was submission that the Ld.CIT(A) has admitted the said additional ground in page 29 & 30 of the order of the Ld.CIT(A). It was submission that in para 2 the Ld.CIT(A) has admitted the additional ground and in para 3 he holds that the ground is allowed. However, the said ground no.3 which has been allowed by the Ld.CIT(A) is Printed from counselvise.com ITA No.218/CTK/2025 2 in regard to the regular appeal of the assessee and not the additional ground. It was submission that the additional ground has not been adjudicate on merits at all. It was submission that the second issue is in regard to the TDS. The issue of TDS is linked to the issue of the diversion of income pursuant to the scheme of the amalgamation. The TDS credit has not been granted to the assessee in the computation though it was shown the in the earlier order’s computation. It was submission that the issue may be restored to the file of the Ld.CIT(A) to give a finding on the two issues. 3. In reply, the Ld. CIT DR vehemently supported the order of the Ld.CIT(A). 4. We have considered the rival submissions. A perusal of the facts in the present case as also the order of the Ld.CIT(A) shows that the additional ground which has been raised by the assessee has not been adjudicated with a speaking order. Similarly, the issue of the TDS had also not been specifically adjudicated but has only been set aside to the AO. In these circumstances, the issues in this appeal are restored to the file of the Ld.CIT(A) for passing a speaking order. If the Ld.CIT(A) desires to get a computation to be redone by the Ld.AO, then remand proceeding is available to the Ld.CIT(A) to call for the details from the AO. With these directions, the issues in this appeal are restored to the file of the Ld.CIT(A) for readjudication. Printed from counselvise.com ITA No.218/CTK/2025 3 5. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 03/02/2026. Sd/- (LAXMI PRASAD SAHU) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 03/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "