M/S. DELUX BEARINGS PVT. LTD.(SUCCESSOR TO LUXITE INDUSTRIES LTD., MUMBAI V. DY COMM OF INCOME TAX-6(1), MUMBAI

ITA 295/MUM/2023

AI Insights

M/s. Delux Bearings Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, which confirmed the addition of Rs.1,49,392 as interest income not offered for tax by the assessee. The case originated from the reopening of the assessment under section 147 of the Income Tax Act, 1961, where it was noted that the assessee had credited an amount towards interest received which had escaped assessment. The Tribunal found that the assessee should be given another opportunity to present its case before the CIT(A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113061 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-03-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 30-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 147; 148; 143(3); 143(1)

Judgement Text

Aa890-IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM IT A N o. 295 /M u m / 20 23 ( A s s e ss me nt Y ea r: 20 0 9- 10 ) M/s. Delux Bearings Pvt. Ltd. (Successor to Luxite Industries Ltd.) 31A/32, Ideal Industrial Estate, 124, N M Joshi Marg, Lower Parel (W), Mumbai-400 013 V s. Dy. CIT-6(1) Mumbai P A N / G I R N o. AA A CL 3 83 2 E (Appellant) : (Respondent) Assessee by : Shri Anant Pai Revenue by : Ms. Mahita Nair D a te o f H e a r i n g : 29.03.2023 D ate of P ro n ou n ce me n t : 27.06.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), National Faceless Appeal Centre (‘NFAC’ for short), passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2009-10. 2. The assessee had filed an affidavit for condoning the delay of 10 days in filing the present appeal. On perusal of the reasons stated by the assessee, we hereby condone the said delay. 3. The assessee has challenged the grounds on the reopening of the assessment u/s. 147 of the Act and the addition of Rs.1,49,392/- being the interest income not offered to 2 ITA No. 2 9 5 / M u m / 2 0 2 3 ( A . Y . 2 0 0 9 - 1 0 ) M/s. Delux Bearings Pvt. Ltd. vs. Dy. CIT tax. The brief facts of the case are that the assessee company is engaged in the business of manufacturing and exporting various types of bearings. The assessee had filed its return of income dated 26.09.2009, declaring total income of Rs.5,77,28,388/- and the same was processed u/s. 143(1) of the Act. The assessee’s case was selected for scrutiny and the assessment order dated 08.12.2011 was passed u/s. 143(3) of the Act where the Assessing Officer (A.O. for short) had determined the total income at Rs.5,84,76,260/- against the returned income of Rs.5,77,28,388/-. The assessee’s case was then reopened u/s. 147 of the Act vide notice u/s. 148 of the Act dated 06.08.2013 for the reason that the assessee has credited an amount of Rs.1,45,667/- towards interest received/discount under the head ‘other income’ in the profit and loss account which has escaped assessment. The assessment order u/s. 143(3) r.w.s. 147 of the At dated 30.01.2014 was passed by the A.O. by making an addition of Rs.1,49,392/- thereby determining the total income at Rs.5,86,25,650/-. 4. The assessee was in appeal before the ld. CIT(A), challenging the impugned order who vide an ex parte order confirmed the said addition. 5. The assessee is in appeal before us, challenging the order of the ld. CIT(A). 6. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has received interest income of Rs.2,95,059/- from HDFC Bank Ltd. and Standard Chartered Bank as per the TDS certificates, whereas the assessee has offered only Rs.1,45,667/- for tax. The assessee’s contention that it had netted off the interest income against the interest paid was not accepted by the A.O. during the assessment proceeding for the reason that the assessee has debited interest of 3 ITA No. 2 9 5 / M u m / 2 0 2 3 ( A . Y . 2 0 0 9 - 1 0 ) M/s. Delux Bearings Pvt. Ltd. vs. Dy. CIT Rs.7,56,815/- in the P & L account and credited the interest income of Rs.1,45,667/- which according to the A.O. the assessee should have netted off its interest with the whole amount of interest income, thereby holding that the impugned amount of Rs.1,49,392/- has escaped assessment and the same is deemed to be income chargeable to tax and thereby making an addition on the impugned amount. 7. The ld. CIT(A) had dismissed the appeal filed by the assessee for the reason that the assessee has failed to furnish any supportive documents to support its claim. 8. The learned Authorised Representative (ld. AR for short) for the assessee contended that the assessee may be given one more opportunity to present its case before the ld. CIT(A) and, hence, prayed that the same may be remanded back. 9. The learned Departmental Representative (ld. DR for short) for the Revenue, on the other hand, had nothing to controvert the said fact. We are of the considered view that the assessee may be given one more opportunity to present its case before the first appellate authority and, therefore, we set aside this issue back to the file of the ld. CIT(A) for denova adjudication. The ld. CIT(A) is directed to give sufficient opportunity to the assessee and to decide the issue on merits of the case. 10. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 27.06.2023 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 27.06.2023 Roshani , Sr. PS 4 ITA No. 2 9 5 / M u m / 2 0 2 3 ( A . Y . 2 0 0 9 - 1 0 ) M/s. Delux Bearings Pvt. Ltd. vs. Dy. CIT Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai