DCIT CENTRAL CIRCLE-7(2), MUMBAI, MUMBAI V. RUCHI INFRASTRUCTURE LIMITED, MUMBAI

ITA 388/MUM/2025

AI Insights

The case involves two separate appeals by the revenue against Ruchi Infrastructure Limited concerning the assessment years 2013-14 and 2014-15. The core issue was the disallowance of a deduction claimed under section 80IA of the Income Tax Act for a captive jetty. The Assessing Officer (AO) initiated reassessment proceedings based on revenue audit objections, which were contested by the assessee. The CIT(A) quashed the reassessment, finding it based on erroneous facts and without new material evidence. The Tribunal agreed with the CIT(A)'s decision, emphasizing the lack of new tangible material and the incorrect basis for reopening the assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315404 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Other Referred Cases: UOI vs. Ashish Agarwal, Commissioner of Income Tax, Delhi vs. Kelvinator of India
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVINDRAO J. NINAWE; DR
• Assessee Lawyers: MALAV SHETH; AR
• Keywords: Wrong claim; Audit objection; Tangible material
• Section: 143(3)

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 388 & 389/Mum/2025 Assessment Years: 2013-14 & 2014-15 DCIT, Central Circle-7(2), Mumbai Vs Ruchi Infrastructure Limited 615, Tulsiani Chambers Nariman Point Mumbai - 400021 [PAN: AAACR2035H] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Malav Sheth, A/R Revenue by : Shri Govindrao J. Ninawe, Sr. D/R सुनवाई की तारीख/Date of Hearing : 06/05/2025 घोषणा की तारीख /Date of Pronouncement: 13/05/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. No. 388 & 389/Mum/2025 are two separate appeals by the revenue preferred against two separate orders of the ld. CIT(A) – 49, Mumbai [hereinafter ‘the ld. CIT(A)’], dated 25/11/2024 pertaining to AY 2013-14 & 2014-15 respectively. 2. Since common grievance is involved in the captioned appeals, they were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. Since the underlying facts are identical in both the appeals, we are considering the facts of ITA No. 388/Mum/2025; AY 2013-14. 4. Briefly stated, the facts of the case are that the assessee filed its return of income which was selected for scrutiny assessment proceedings and accordingly assessment was framed u/s 143(3) of the Act. I.T.A. No. 388 & 389/Mum/2025 2 5. Subsequently, on the basis of the revenue audit objections, stating that the assessee company has been claiming deduction u/s 80IA of the Act on captive jetty, the AO formed a belief that the income has escaped assessment by way of wrong claim of deduction u/s 80IA of the Act. 6. Drawing support from the decision of the Hon’ble Supreme Court in the case of UOI vs. Ashish Agarwal, the AO issued a showcause notice u/s 148A of the Act providing the information and material relied upon for initiating proceedings u/s 148A of the Act. Re-assessment proceedings were completed by disallowance of deduction claimed u/s 80iA of the Act. 6.1. The said order was challenged before the ld. CIT(A). The reopening of the assessment was challenged vehemently on the ground that no new material evidence has been brought on record and the reopening has been done on erroneous facts as the assessee never claimed any deduction u/s 80IA of the Act on captive jetty at Jamnagar. After considering the facts and the submissions and finding that the reopening was done on wrong facts, the ld. CIT(A) held that the re- opening is based on incorrect set of facts without proper verification and application of mind and accordingly quashed the assessment order. 6.1.1. On merits of the case, the ld. CIT(A) found that the assessee has been claiming deduction u/s 80IA of the Act right from AY 2007-08 and the deduction has been allowed in all the succeeding years and it is not coming from the records that there was any change in the material facts or position of law or any decision of the superior courts that could lead the AO to take a different view. On merits of the case also, the ld. CIT(A) also allowed the deduction u/s 80IA of the Act. I.T.A. No. 388 & 389/Mum/2025 3 7. Before us, the ld. D/R strongly supported the findings of the AO. The ld. Counsel for the assessee reiterated what has been stated before the lower authorities. 8. We have given a thoughtful consideration to the orders of the authorities below. The reasons for reopening the assessment reads as under:- I.T.A. No. 388 & 389/Mum/2025 4 I.T.A. No. 388 & 389/Mum/2025 5 8.1. A perusal of the aforementioned reason shows that the basis is the case records available with the AO which means that there was no new tangible material for the reopening of the assessment which is mandatory as held by the Hon’ble Supreme Court in the case of Commissioner of Income Tax, Delhi vs. Kelvinator of India (320 ITR 561 SC). Moreover, the very basis for reopening the assessment is erroneous inasmuch as the assessee never claimed any deduction u/s 80IA of the Act in respect of Jetty at Jamnagar and most importantly, the assessee has been claiming the deduction u/s 80IA of the Act right from AY 2007-08 onwards and till the preceding AY, the claim was allowed and I.T.A. No. 388 & 389/Mum/2025 6 there being no material difference in the facts nor there is any adverse decision of the superior courts which could lead the AO to take an different view. 9. Considering the facts of the case from all possible angles, we do not find any reason to interfere with the findings of the ld. CIT(A). Accordingly, appeals by the revenue are dismissed. 10. In the result, both the appeals of the revenue are dismissed. Order pronounced in the Court on 13th May, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 13/05/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "