Kamrup Coke Industries , Kolkata V. A.C.I.T.,Circle-37, Kolkata

ITA 2594/KOL/2019

AI Insights

Kamrup Coke Industries appealed against the order of the Commissioner of Income Tax (Appeals)-11, Kolkata, which upheld the Assessing Officer's decision under section 154 of the Income Tax Act. The dispute centered on an amount of Rs.29,52,785, which was initially disallowed in the assessment order under section 143(3) but was later included in the computation of income by the Assessing Officer under section 154. The assessee argued that the issue was highly debatable and should not have been addressed under section 154. The CIT(Appeals) dismissed the appeal, stating that the amount represented disallowance of interest expenditure and was not eligible for deduction under section 80IC. The Tribunal, after considering the previous related appeal (ITA No. 2593/KOL/2019), decided to remit the issue back to the Assessing Officer for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129063 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 10-01-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 15-12-2019
• Other Referred Cases: ITA No. 2593/KOL/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 154; 143(3); 80IC; 80IC

Judgement Text

ITA No. 2594/KOL/2019 Assessment Year: 2013-2014 Kamrup Coke Industries 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Girish Agrawal, Accountant Member I.T.A. No. 2594/KOL/2019 Assessment Year: 2013-2014 Kamrup Coke Industries,........................Appellant 1/1A, Biplabi Anukul Chandra Street, Kolkata-700072 [PAN: AAGFK3064J] -Vs.- Assistant Commissioner of Income Tax,...Respondent Circle-37, Kolkata, 3, Government Place (West), Kolkata-700001 Appearances by: Shri Rakesh Debey, Advocate, appeared on behalf of the assessee Shri G. Hukugha Sema, CIT, appeared on behalf of the Revenue Date of concluding the hearing : January 11, 2023 Date of pronouncing the order : January 13, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals)-11, Kolkata dated 25.09.2019 passed for Assessment Year 2013-14. ITA No. 2594/KOL/2019 Assessment Year: 2013-2014 Kamrup Coke Industries 2 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in dismissing the appeal of the assessee and upholding the order of ld. Assessing Officer passed under section 154 of the Income Tax Act. 3. Brief facts of the case are that an assessment order under section 143(3) was completed on 24.02.2016. The ld. Assessing Officer has initiated proceeding under section 154 of the Income Tax Act. The ld. Assessing Officer was of the view that in paragraph no. 3 & 3.1 of the assessment order an amount of Rs.29,52,785/- was disallowed, however, it remained to be included in the computation of income. Accordingly he took action under section 154 of the Income Tax Ac and included that amount of Rs.29,52,785/-. 4. The assessee has filed an appeal against the assessment order passed under section 143(3) on 24.02.2016. He thereafter challenged the order of the ld. Assessing Officer passed under section 154 read with 143(3) of 2 nd June, 2016 before the ld. CIT(Appeals). The assessee had contended that the issue is highly debatable and, therefore, ld. Assessing Officer ought to have not made this addition in a proceeding under section 154 of the Income Tax Act. The ld. CIT(Appeals) dismissed the appeal of the assessee by holding that sum of Rs.29,52,785/- represents disallowance of interest expenditure and, therefore, this amount ITA No. 2594/KOL/2019 Assessment Year: 2013-2014 Kamrup Coke Industries 3 is not eligible for claiming deduction us/ 80IC of the Income Tax Act, 1961. 5. Before us, the assessee has submitted that the assessee has challenged the original assessment order passed under section 143(3) of the Income Tax Act before ld. CIT(Appeals) and thereafter before the ITAT vide ITA No. 2593/KOL/2019. After hearing the assessee, the Tribunal has set aside the impugned order of the ld. CIT(Appeals) and restored all these issues to the ld. Assessing Officer for re-adjudication. Since the determination of income of the assessee remained to be adjudicated by the ld. Assessing Officer afresh after the order of the Tribunal dated 13.09.2022 passed in ITA No. 2593/KOL/2019, we deem it appropriate to relegate this issue also for fresh adjudication at the end of the ld. Assessing Officer. Therefore, whether disallowance of interest expenditure would qualify for grant of deduction under section 80IC is remitted back to the file of ld. Assessing Officer for re-adjudication. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 13 th January, 2023. Sd/- Sd/- (Girish Agrawal) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 13 th day of January, 2023 ITA No. 2594/KOL/2019 Assessment Year: 2013-2014 Kamrup Coke Industries 4 Copies to :(1) Kamrup Coke Industries, 1/1A, Biplabi Anukul Chandra Street, Kolkata-700072 (2) Assistant Commissioner of Income Tax, Circle-37, Kolkata, 3, Government Place (West), Kolkata-700001 (3) Commissioner of Income Tax (Appeals)-11, Kolkata; (4) Commissioner of Income Tax- ; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.