AI Insights
The case involves New Era Shipping Pvt. Ltd., the appellant, contesting an order from the National Faceless Appeal Centre (NFAC) which pertained to the assessment year 2012-13. The primary issue was the disallowance of outstanding expenses amounting to Rs.36,77,798, which the Assessing Officer (AO) had initially disallowed due to the non-submission of details during the assessment proceedings. The NFAC later reduced this disallowance to 25%, confirming an addition of Rs.9,19,450. The appellant argued that these expenses were legitimate and pertained to the previous financial year, thus should be deductible. The ITAT, after hearing the arguments, decided to remand the case back to the NFAC, providing the appellant a final opportunity to present their case with appropriate evidence.
Appeal details
Counselvise Citation
[2023] 140 COUNSELVISE.COM (IT) 136858 (ITAT-PANAJI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 9 month(s) 26 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-08-2023
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Assessment Year
2012-2013
Appeal Filed On
25-10-2021
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH :: PANAJI BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER & SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER (Through virtual hearing) ITA No.28/PAN/2021 (A.Y. 2012-13) New Era Shipping Pvt. Ltd., Flat No.2, Dr. Mukund Bldg., 1 st Floor, F.L. Gomes Road, Mormugao, South Goa, Goa. PAN: AABCN 7724 Q vs ITO Ward-2(3), Panaji. Appellant Respondent Assessee by : Shri D.E. Robinson, Adv. Revenue by : Shri N. Shrikanth, DR Date of hearing : 17/08/2023 Date of pronouncement : 21/08/2023 O R D E R Per PARTHA SARATHI CHAUDHURY, JM: This appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 19.08.2021 for A.Y. 2012-13 as per the following grounds of appeal:- “The ld.CIT(A) erred in restricting deduction of outstanding expenses consisting of salary to staff for the month of March, 2012 duly paid in April, 2012 (Rs. 2,86,868/-)” 2. The solitary grievance as assailed by the assessee in the appeal memo is regarding the addition made by the Assessing Officer (AO) of Rs.36,77,798/-. The AO had disallowed the entire outstanding expenses on the ground that assessee did not furnish any details. The assessee had submitted that all these expenses related to March, 2012 ITA No.28/PAN/2021 New Era Shipping Pvt. Ltd. 2 and the said expenses have been duly paid in the following year. The AO had disallowed 100% of the outstanding expenses on the ground that details were not furnished during the assessment proceedings. The NFAC in its order observed categorically that nothing further brought on record and there is also lapse incompliance on the part of the assessee. Accordingly, NFAC had restricted the said disallowance to 25% of the outstanding expenses. Therefore, the addition was confirmed to the extent of Rs. 9,19,450/- and that NFAC’s stage, the assessee got relief of Rs. 27,62,348/- where the issue was partly allowed in favour of the assessee. 3. At the time of hearing, it was submitted by the ld.AR that they will file appropriate details/evidences for justification to the fact that all these outstanding expenses pertains to March, 2012 and that these expenses have been duly paid in the following year. Ld.AR prayed for one final opportunity to substantiate their arguments before the NFAC. Ld.DR did not raise any objection, if the matter is remanded to the file of NFAC. 4. Having heard the parties and considering the facts and circumstances involved in this case, in the interest of justice, we are inclined to provide one final opportunity to the assessee, so that they are able to represent their case on merits on this issue by filing the requisite details/evidences as submitted by the ld.AR and accordingly, NFAC shall re-adjudicate as per law. In view thereof, we set aside the ITA No.28/PAN/2021 New Era Shipping Pvt. Ltd. 3 order of the NFAC on the said issue and the matter is remanded back to the file of NFAC for re-adjudication as per law, and at the same time, the assessee is directed to file the relevant details before the NFAC to represent the case substantially on merits. 5. In the result, appeal of the assessee stands allowed for statistical purposes. Order pronounced in open Court on 21 st August, 2023. Sd/- Sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 21 st August, 2023 vr/- Copy to : 1. The Appellant. 2. The Respondent. 3. The Pr. CIT concerned. 5. The DR, ITAT, Panaji Bench, Panaji. 6. Guard File. By Order // TRUE COPY// // Senior Private Secretary ITAT, Pune.
