DY.COMMISSIONER OF INCOME TAX CIRCLE (EXEMPTIONS), NAGPUR V. VSPM ACADEMY OF HIGHER EDUCATION, NAGPUR

ITA 54/NAG/2025

AI Insights

The case involves an appeal by the Deputy Commissioner of Income Tax (Exemption) against the VSPM Academy of Higher Education concerning the assessment order for the year 2019-20. The primary contention was the addition of interest paid to M/s Aneri Fincap Limited on a substantial loan, which the revenue argued was improperly assessed. The CIT(A) had set aside the original assessment order, prompting the revenue's appeal. The tribunal's decision focused on procedural fairness and the substantive issues of tax assessment related to the interest on the loan.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841268 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 30-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA
• Assessee Lawyers: MISS MRUNAL BHUSARI
• Keywords: Tax effect
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, NAGPUR BEFORE SHRI PAWAN SINGH, JM & SHRI KHETTRA MOHAN ROY, AM ITA No. 54/Nag./2025 (Assessment Year : 2019–20) DCIT (Exemption), Room no. 104, 1st Floor, BSNL Building, Near Balaji Temple, Seminary Hills, Nagpur-440006. ……………. Appellant v/s VSPM Academy of Higher Education, YCMA Complex, Maharajbag Road, Nagpur–440001. PAN – AAATV0836H ……………. Respondent Revenue by : Shri Surjit Kumar Saha, Sr. DR Assessee by : Miss Mrunal Bhusari, Adv. Date of Hearing –20/02/2026 Date of Order – 26/02/2026 O R D E R Per: Khettra Mohan Roy, AM The present appeal by the revenue is directed against the order dated 22/11/2024, passed by the learned Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi, [for short, “ld. CIT(A)”] under section 147 r.w.s. 144 of the Income Tax Act, 1961 (the Act) for the Assessment Year (A.Y.) 2019–20. The Revenue has raised the following grounds of appeal: Printed from counselvise.com 2 ITA No. 54/Nag./2025 VSPM Academy of Higher Education “1. On the fact and circumstances of the case and in law, the Ld. CIT(A) has erred in setting aside the assessment order back to the file of Assessing Officer without appreciating the fact that the captioned assessment order was passed by the Assessing Officer only after conducting through enquiries and verification as required by law. 2. On the fact and circumstances of the case and in law, the Ld. CIT(A) has erred in opining that the Assessing Officer has not given any opportunity to the assessee to represent its case and therefore it is a fit case for setting aside order passed by the AO for fresh assessment.” 2. The tax effect in this case is only `. 34,58,762/–. 3. The ld. CIT–DR has submitted that instant case falls under exception clause (h) as stipulated under para–3.1 of CBDT Circular no. 5 of 2024 dated 15.03.2024. 4. The ld. AR vehemently opposed and submitted that appeal may be dismissed at the very onset. 5. The addition of `. 1,05,15,642/– pertains to interest paid to M/s Aneri Fincap Limited on a loan of `. 9,70,94,431/–. No addition has been made on account of such loan holding it to be on accommodation entry. The independent addition of interest is unsustainable. 6. In the result, the appeal of revenue is dismissed. Printed from counselvise.com 3 ITA No. 54/Nag./2025 VSPM Academy of Higher Education Order pronounced in the open Court on 26/02/2026 Sd/– PAWAN SINGH JUDICIAL MEMBER Nagpur dated 26/02/2026 Sd/- KHETTRA MOHAN ROY ACCOUNTANT MEMBER Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order SK, SR. PS Assistant Registrar ITAT, Nagpur Printed from counselvise.com "