EMCO GOA PRIVATE LIMITED,MARGAO V. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU

ITA 102/PAN/2024

AI Insights

Emco Goa Pvt Ltd appealed against the order of the CIT(A) which partially sustained the addition made by the Assessing Officer under sections 143(1) and 250 of the Income Tax Act. The primary contention was regarding the tax treatment of profit on redemption of debentures, which the assessee declared as short-term capital gains, but was treated as income from other sources by the Assessing Officer. The Tribunal found merit in the assessee's argument that the same income was taxed under two different heads, which is against the fundamental rule of law of taxation. The case was remanded back to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474237 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMALRAJ PERIYAGOUNDENSR
• Assessee Lawyers: POOJA BANDEKAR
• Keywords: Business income; Capital Gains
• Section: 250; 143(1); 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHIR PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GD PADMAHSHALI, ACCOUNTANT MEMBER ITA No. 102/PAN/2024 (A.Y: 2019-20) Emco Goa Pvt Ltd, Prasad Rawanfond, Aquea, Baixo,Navelim, Margoa-403707, Goa. Vs. ADIT, CPC, Bengaluru-560500. Kar nataka. èथायी लेखा सं./जीआइआर सं./PAN No.AAACE3064F Appellant .. Respondent Assessee by : Ms.Pooja Bandekar.AR Revenue by : Mr.Vimalraj PeriyagoundenSr.DR Date of Hearing 25.03.2025 Date of Pronouncement 27.03.2025 आदेश / O R D E R The appeal is filed by the assesse against the order of the Addl /JCIT (A)-13 Mumbai passed U/sec 143(1) and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the order of the CIT(A) partially sustaining the addition made by the Assessing Officer. ITA No. 102/PAN/2024 Emco Goa Private Limited. - 2 - 2. The brief facts of the case are that, the assesse company is engaged in the business of mining, machinery, hire and loading of bags. The assesse has filed the return of income for the A.Y.2019-20 on 30- 09-2019 disclosing a total income under the provisions of section 115JB of the Act of Rs.2,50,81,166/-. Subsequently, the return of income was processed with addition of profit and restricting the carry forward of loss to Rs.55,02,853/- as against Rs.72,19,222/- claimed by the assessee and the order u/sec 143(1) of the Act was passed on 22.10.2020. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A). Whereas the CIT(A) considered the grounds of appeal, statement of facts and the submissions of the assesse but has granted the marginal relief in other grounds of appeal and partly allowed the assesse appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal ITA No. 102/PAN/2024 Emco Goa Private Limited. - 3 - 4. At the time of hearing, the Ld. AR of the assessee submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the evidences and information filed in the proceedings. And the assessment was completed u/s 143(1) of the Act treating the profit on redemption of debentures under the income from other sources as against the income offered as short term capital gains by the assessee. Whereas the income has been correctly offered by the assessee, under the head “Short Term Capital Gains” but the A.O has erred in taxing the same amount after reducing from the business receipts and subjected to tax twice.The Ld.AR contentions are that the important facts are not verified and pleaded for one more opportunity before the lower authorities and the Ld.AR substantiated the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue is with respect to the taxability of profit on redemption of debentures under the income from ITA No. 102/PAN/2024 Emco Goa Private Limited. - 4 - other sources as against the income offered as short term capital gains by the assessee. The contentions of the Ld.AR are that the same income is taxed under income from capital gains and also the assesseing officer has reduced the amount under the business income and subjected it to tax under Income from other sources. We find the return of income was processed under 143(1) of the Act and the Ld.AR has demonstrated the calculations and offering of income as Short Term capital Gains in the computation of income placed at Page 96 & 97 of the paper book which is not disputed. Further the fundamental rule of law of taxation is that, unless otherwise expressly provided, income cannot be taxed twice. We considering the facts, circumstances, submissions and to meet the ends of justice, shall provide with one more opportunity of hearing to the assessee to substantiate the claim before the assessing officer. Accordingly, we restore the disputed issue for limited purpose along with evidences to the file of the Assessing officer to examine and verify the claim and decide on the merits. And the assessee should be provided adequate opportunity of hearing and the ITA No. 102/PAN/2024 Emco Goa Private Limited. - 5 - assessee should cooperate in submitting the information and we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 27.03.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 27/03/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT (Judicial) 4. The PCIT 5. DR, ITAT, 6. Guard File आदेशानुसार/ BY ORDER, स×याͪपत ĤǓत //True Copy// 1. ( Asst. Registrar) ITAT, Panaji ITA No. 102/PAN/2024 Emco Goa Private Limited. - 6 - Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed 2. Other Member… on "