M/S ZENITH STEEL TUBES & INDUSTRIES LTD, MUMBAI V. DY COMMISSIONER OF INCOME TAX CC-2(4), MUMBAI

ITA 2996/MUM/2022

AI Insights

The case involves M/s Zenith Steel Tubes & Industries Ltd., which appealed against the order of the Commissioner of Income-tax (Appeals)-48, Mumbai, for the assessment year 2017-18. The primary issues in the appeal were the additions made under section 43B of the Income Tax Act concerning non-payment of statutory dues and interest on delayed payments, as well as the disallowance of a loss computed at a net profit rate of 0.27%. The Tribunal found that the Assessing Officer and the CIT(A) had not adequately verified the claims and directed a re-examination of the documents and accounts provided by the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 123556 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Next Hearing Date: 11-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 23-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Principle of natural justice; TDS
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI BEFORE SHRI ABY T VARKEY (JUDICIAL MEMBER) AND SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) ITA No. 2996/MUM/2022 Assessment Year: 2017-18 M/s Zenith Steel Tubes & Industries Ltd., 204, Maker Bahvan NO. 3, New Marine Lines-400020. Vs. Dy. CIT CC 2(4), 802, Pratishta Bhavan, Old CGO Building, M.K. Road, Mumbai-400020. PAN No. AACCA 3423 E Appellant Respondent Assessee by : Mr. Hariom Tulsyan, AR Revenue by : Ms. Mahita Nair, DR Date of Hearing : 12/04/2023 Date of pronouncement : 26/04/2023 ORDER PER OM PRAKASH KANT, AM This appeal by the assessee is directed against order dated 27.10.2022 passed by the Ld. Commissioner of Income-tax (Appeals)-48, Mumbai [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs.1,17,39,408/- w/s 43B of the Act on account of nonpayment of Statutory dues payable. In doing so CIT(A) failed to appreciate that • When the appellant company has not claimed any expenditure in profit and loss account on account of statutory dues payable of Rs.1,17,39,408/ disallowance of the same. • Statutory dues payable of Rs. 1.17.39.408/ under the schedule of "Other Current Liabilities" at liability side in the Balance Sheet. 2. On the facts and circumstances of the case and in law. the CIT (A) erred in confirming the addition of Rs. 2 on account of interest paid on delayed payment (dues) u/s 37(1) of the Act. In doing so the CIT(A) failed to appreciate that The appellant has claimed expenditure of Rs.2,40,895/ profit and loss account under the head financial charges. The appellant company has disallowed the same while computing the total income by adding it back. This will lead to double taxation on the same amount 3. On the facts and circumstances of the case, the Ld. CIT(A) erred in confirming the disallowance of loss of 1,46,70,249/ profit @ 0.27% (earlier year net profit i.e., A.Y. 2016 total expenses claimed in profit and loss account. In doing so • The computation of income by applying net rate and disallowing rejected • There is no proper basis for adopting a net profit rate of 0.27% in co total income. 4. On the facts and in the circumstances of the case and in law, the CIT(A) erred in approving the assessment and confirming the additions made therein without taking into consideration the fact that proper opportunity was not granted to the assessee and there was non compliance with principles of natural justice. M/s Zenith Steel Tubes & Industries Ltd. • When the appellant company has not claimed any expenditure in profit and loss account on account of statutory dues payable of Rs.1,17,39,408/- there can be no case for disallowance of the same. Statutory dues payable of Rs. 1.17.39.408/-, is standing under the schedule of "Other Current Liabilities" at liability side in the Balance Sheet. On the facts and circumstances of the case and in law. the CIT (A) erred in confirming the addition of Rs. 2 on account of interest paid on delayed payment (dues) u/s 37(1) of the Act. In doing so the CIT(A) failed to appreciate The appellant has claimed expenditure of Rs.2,40,895/ profit and loss account under the head financial charges. he appellant company has disallowed the same while computing the total income by adding it back. This will lead to double taxation on the same amount On the facts and circumstances of the case, the Ld. CIT(A) erred in confirming the disallowance of loss of 1,46,70,249/- and addition of Rs. 7,61,260/- by taking net profit @ 0.27% (earlier year net profit i.e., A.Y. 2016 total expenses claimed in profit and loss account. In doing • The computation of income by applying net rate and disallowing loss was not correct when book profits were not • There is no proper basis for adopting a net profit rate of 0.27% in co total income. On the facts and in the circumstances of the case and in law, the CIT(A) erred in approving the assessment and onfirming the additions made therein without taking into consideration the fact that proper opportunity was not granted to the assessee and there was non compliance with principles of natural justice. M/s Zenith Steel Tubes & Industries Ltd. 2 ITA No. 2996/M/2022 • When the appellant company has not claimed any expenditure in profit and loss account on account of statutory there can be no case for , is standing under the schedule of "Other Current Liabilities" at liability On the facts and circumstances of the case and in law. the CIT (A) erred in confirming the addition of Rs. 2,40,895/- on account of interest paid on delayed payment (dues) u/s 37(1) of the Act. In doing so the CIT(A) failed to appreciate The appellant has claimed expenditure of Rs.2,40,895/- in the profit and loss account under the head financial charges. he appellant company has disallowed the same while computing the total income by adding it back. This will lead to On the facts and circumstances of the case, the Ld. CIT(A) erred in confirming the disallowance of loss of Rs. by taking net profit @ 0.27% (earlier year net profit i.e., A.Y. 2016-17) on total expenses claimed in profit and loss account. In doing • The computation of income by applying net rate and loss was not correct when book profits were not • There is no proper basis for adopting a net profit rate of On the facts and in the circumstances of the case and in law, the CIT(A) erred in approving the assessment and onfirming the additions made therein without taking into consideration the fact that proper opportunity was not granted to the assessee and there was non compliance 2. Briefly stated, facts of the case are that the asses was engaged in the business of manufacturing and trading steel products. In the year under consideration, the assessee filed return of income electronically on 31.1.2017 declaring loss of Rs.1,47,23,604/-. The return of income filed by the asse selected for scrutiny and statutory notices under the Income Act, 1961 (in short ‘the Act’) were issued and complied with. In the assessment completed u/s 143(4) of the Act on 10.12.2019, the Assessing Officer made certain additions/disallowan 3. On further appeal, the Ld. CIT(A) rejected the contention of the assessee and upheld the order of the Ld. Assessing Officer. 4. Aggrieved the assessee is before us by way of raising grounds as reproduced above. 5. Before us, the Ld. Counsel of th Book containing pages 1 to 103. 6. The Ld. Counsel referred to ground No. 1 of the appeals and submitted that addition of Rs.1,17,39,408/ account of non-payment of statutory dues is not justified as no such statutory dues the assessee in the profit and loss account in the year under consideration. The Ld. Counsel of the assessee referred to the profit and loss account, balance in the paper book. M/s Zenith Steel Tubes & Industries Ltd. Briefly stated, facts of the case are that the asses was engaged in the business of manufacturing and trading steel products. In the year under consideration, the assessee filed return of income electronically on 31.1.2017 declaring loss of . The return of income filed by the asse selected for scrutiny and statutory notices under the Income Act, 1961 (in short ‘the Act’) were issued and complied with. In the assessment completed u/s 143(4) of the Act on 10.12.2019, the Assessing Officer made certain additions/disallowan On further appeal, the Ld. CIT(A) rejected the contention of the assessee and upheld the order of the Ld. Assessing Officer. Aggrieved the assessee is before us by way of raising grounds as reproduced above. Before us, the Ld. Counsel of the assessee has filed a Paper Book containing pages 1 to 103. The Ld. Counsel referred to ground No. 1 of the appeals and submitted that addition of Rs.1,17,39,408/- u/s 43B of the Act on payment of statutory dues is not justified as no dues payable of Rs.1,17,39,408/- was claimed by the assessee in the profit and loss account in the year under consideration. The Ld. Counsel of the assessee referred to the profit and loss account, balance sheets and computation of income fil M/s Zenith Steel Tubes & Industries Ltd. 3 ITA No. 2996/M/2022 Briefly stated, facts of the case are that the assessee company was engaged in the business of manufacturing and trading steel products. In the year under consideration, the assessee filed return of income electronically on 31.1.2017 declaring loss of . The return of income filed by the assessee was selected for scrutiny and statutory notices under the Income-tax Act, 1961 (in short ‘the Act’) were issued and complied with. In the assessment completed u/s 143(4) of the Act on 10.12.2019, the Assessing Officer made certain additions/disallowances. On further appeal, the Ld. CIT(A) rejected the contention of the assessee and upheld the order of the Ld. Assessing Officer. Aggrieved the assessee is before us by way of raising grounds e assessee has filed a Paper The Ld. Counsel referred to ground No. 1 of the appeals and u/s 43B of the Act on payment of statutory dues is not justified as no was claimed by the assessee in the profit and loss account in the year under consideration. The Ld. Counsel of the assessee referred to the profit sheets and computation of income filed 7. On the contrary, the Ld. Departmental Representative (DR) submitted that according to the balance sheet in the year under consideration statutory dues payable are of Rs.1,17,39,408/ compared to amount of Rs.59,59,478/ certainly statutory dues are payable for the year under consideration. He referred to the computation of the income filed by the assessee on paper book page No. 1 and submitted that no disallowance in respect of statutory dues has been add profit as per the profit and loss account available on page 6 of the Paper Book. According to him, in the profit and loss account, the assessee has debited rates taxes license and inspe Rs.14,80,039/-. The other expenses statutory due might have camouflaged in other expenses. T the assessee is required to submit and an evidence/ proof of deposit of all the items liable for disallowance u/s 43B of the Act. Accordingly, he submitted that issue may be restored back to the Assessing Officer for deciding afresh. 8. We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. We find that the Assessing Officer noted that under the head ‘liabilities’ statutory dues payable of Rs.1,17,39,408/ duly verifiable from the balance sheet filed before us (PB the Assessing Officer M/s Zenith Steel Tubes & Industries Ltd. On the contrary, the Ld. Departmental Representative (DR) submitted that according to the balance sheet in the year under consideration statutory dues payable are of Rs.1,17,39,408/ compared to amount of Rs.59,59,478/- and therefore, there is certainly statutory dues are payable for the year under consideration. He referred to the computation of the income filed by the assessee on paper book page No. 1 and submitted that no disallowance in respect of statutory dues has been add profit as per the profit and loss account available on page 6 of the Paper Book. According to him, in the profit and loss account, the assessee has debited rates taxes license and inspection charges of . The other expenses are also debited and the statutory due might have camouflaged in other expenses. T the assessee is required to submit ledger account of all expenses proof of deposit of all the items liable for disallowance u/s 43B of the Act. Accordingly, he submitted that issue may be restored back to the Assessing Officer for deciding We have heard rival submission of the parties on the issue and perused the relevant material on record. We find that the Assessing Officer noted that under the head ‘liabilities’ statutory dues payable of Rs.1,17,39,408/- was appearing. This amount is duly verifiable from the balance sheet filed before us (PB the Assessing Officer, the assessee had provided breakup of this M/s Zenith Steel Tubes & Industries Ltd. 4 ITA No. 2996/M/2022 On the contrary, the Ld. Departmental Representative (DR) submitted that according to the balance sheet in the year under consideration statutory dues payable are of Rs.1,17,39,408/- as refore, there is certainly statutory dues are payable for the year under consideration. He referred to the computation of the income filed by the assessee on paper book page No. 1 and submitted that no disallowance in respect of statutory dues has been added to the net profit as per the profit and loss account available on page 6 of the Paper Book. According to him, in the profit and loss account, the ction charges of lso debited and the statutory due might have camouflaged in other expenses. Therefore, ledger account of all expenses proof of deposit of all the items liable for disallowance u/s 43B of the Act. Accordingly, he submitted that issue may be restored back to the Assessing Officer for deciding We have heard rival submission of the parties on the issue-in- and perused the relevant material on record. We find that the Assessing Officer noted that under the head ‘liabilities’ statutory was appearing. This amount is duly verifiable from the balance sheet filed before us (PB-10). Before provided breakup of this amount of Rs.1,17,39,408/ Rs.81,00,706/-, TDS payable of Rs.76,227/ Rs.13,032/- professional tax Rs.31,575/ Rs.13,97,660/-. The Assessing Officer has also noted that the amount of statutory dues payable u/s 43B of the Act has not been added back to the computation of income and accordingly he made addition. On further appeal, the Ld. CIT(A) after verific documents filed by the assessee directed the assessee to produce necessary documents before the Assessing Officer for verification. The relevant finding of the Ld. CIT(A) is reproduced as under: “7.2 I have carefully considered the facts of th relevant to mention over here that, the AO in his assessment order in para 5 has discussed this issue elaborately. As per section 43B of the Income Tax Act that any taxes not actually paid cannot be allowed as business expense. 7.3 The AO had back amount of Rs. 1,17,39,408/ statutory dues payable u/s43B of the Act. In absence of any further submission made by the assessee, it was unclear whether assessee made payment of these taxes before filing of return of income. Hence, the AO added back the amount of Rs.1,17,39,408/ assessee u/s 43B. 7.4 According to the appellant, it has not claimed any expenses in respect to statutory dues, in the return of income as the sa Current Liabilities". However, no documentary evidences is submitted for verification of the undersigned, except the written submission without any attachment. In such situation, the A.O. is directed to allow the claim o appellant, if the same is found to be correct and genuine. The appellant will also produce necessary documents M/s Zenith Steel Tubes & Industries Ltd. amount of Rs.1,17,39,408/- which consist of VAT payable of , TDS payable of Rs.76,227/-, Exise Duty payable of professional tax Rs.31,575/- and Gram Pancha . The Assessing Officer has also noted that the amount of statutory dues payable u/s 43B of the Act has not been added back to the computation of income and accordingly he made addition. On further appeal, the Ld. CIT(A) after verific documents filed by the assessee directed the assessee to produce necessary documents before the Assessing Officer for verification. The relevant finding of the Ld. CIT(A) is reproduced as under: 7.2 I have carefully considered the facts of the case It is relevant to mention over here that, the AO in his assessment order in para 5 has discussed this issue elaborately. As per section 43B of the Income Tax Act that any taxes not actually paid cannot be allowed as business 7.3 The AO had observed that Assessee had not added back amount of Rs. 1,17,39,408/- in final computation as statutory dues payable u/s43B of the Act. In absence of any further submission made by the assessee, it was unclear whether assessee made payment of these taxes efore filing of return of income. Hence, the AO added back the amount of Rs.1,17,39,408/- to the income of the assessee u/s 43B. 7.4 According to the appellant, it has not claimed any expenses in respect to statutory dues, in the return of income as the same were added under the head "Other Current Liabilities". However, no documentary evidences is submitted for verification of the undersigned, except the written submission without any attachment. In such situation, the A.O. is directed to allow the claim o appellant, if the same is found to be correct and genuine. The appellant will also produce necessary documents M/s Zenith Steel Tubes & Industries Ltd. 5 ITA No. 2996/M/2022 VAT payable of , Exise Duty payable of and Gram Panchayat Tax . The Assessing Officer has also noted that the amount of statutory dues payable u/s 43B of the Act has not been added back to the computation of income and accordingly he made addition. On further appeal, the Ld. CIT(A) after verification of the documents filed by the assessee directed the assessee to produce necessary documents before the Assessing Officer for verification. The relevant finding of the Ld. CIT(A) is reproduced as under: e case It is relevant to mention over here that, the AO in his assessment order in para 5 has discussed this issue elaborately. As per section 43B of the Income Tax Act that any taxes not actually paid cannot be allowed as business observed that Assessee had not added in final computation as statutory dues payable u/s43B of the Act. In absence of any further submission made by the assessee, it was unclear whether assessee made payment of these taxes efore filing of return of income. Hence, the AO added back to the income of the 7.4 According to the appellant, it has not claimed any expenses in respect to statutory dues, in the return of me were added under the head "Other Current Liabilities". However, no documentary evidences is submitted for verification of the undersigned, except the written submission without any attachment. In such situation, the A.O. is directed to allow the claim of the appellant, if the same is found to be correct and genuine. The appellant will also produce necessary documents before A.O. for verification. Hence, subject to the above direction to the AD and looking to the fact that no original record is with the u treated as dismissed for statistical purposes. 8.1 In our opinion the finding of the Ld CIT(A) on the issue in dispute is well reasoned and he has directed for factual verification of the claim of the assessee. (PB-10) it is evident that during the year under consideration there is an increase in accounting statutory dues payable from Rs.59,59,078/- to Rs.1,17,39,408/ Rs.57,79,930/- during the year of the computation of the income, we find that computation has been started from net loss of Rs.1,46,17,249/ certain amount has been added. The first item added is depreciation, the second amount is dis in respect of provisions of gratuity, the is in respect of leave salary of Rs.53,48,985/ amount is other addition of Rs.2,40,091/ delay payment of VAT, Excise, T the profit and loss account, the assessee has debited a sum of Rs.1,48,00,59/- under the head ‘rates taxes’ license and inspection charged (PB-14). The assessee has not provided detailed ledger account of other expenses d it is not evident how much amount out of amount for the year under consideration is ‘taxes rate’ etcor any other expense head M/s Zenith Steel Tubes & Industries Ltd. before A.O. for verification. Hence, subject to the above direction to the AD and looking to the fact that no original record is with the undersigned verification, the ground is treated as dismissed for statistical purposes.” In our opinion the finding of the Ld CIT(A) on the issue in dispute is well reasoned and he has directed for factual verification of the claim of the assessee. We find that from the balance sheet 10) it is evident that during the year under consideration there is an increase in accounting statutory dues payable from to Rs.1,17,39,408/-. Thus, there is a net increase of during the year under consideration of the computation of the income, we find that computation has been started from net loss of Rs.1,46,17,249/- certain amount has been added. The first item added is the second amount is disallowance u/s 40A which is in respect of provisions of gratuity, the third disallowance u/s 43B is in respect of leave salary of Rs.53,48,985/- and the other addition of Rs.2,40,091/-, which is in respect of delay payment of VAT, Excise, TDS etc. as against we note that in the profit and loss account, the assessee has debited a sum of under the head ‘rates taxes’ license and inspection The assessee has not provided detailed ledger account of other expenses debited in profit and loss account. it is not evident how much amount out of amount of statutory dues for the year under consideration is debited under the expense head ’ etcor any other expense head. But it is evident that M/s Zenith Steel Tubes & Industries Ltd. 6 ITA No. 2996/M/2022 before A.O. for verification. Hence, subject to the above direction to the AD and looking to the fact that no original ndersigned verification, the ground is In our opinion the finding of the Ld CIT(A) on the issue in dispute is well reasoned and he has directed for factual verification nd that from the balance sheet 10) it is evident that during the year under consideration there is an increase in accounting statutory dues payable from there is a net increase of under consideration. On verification of the computation of the income, we find that computation has and thereafter certain amount has been added. The first item added is allowance u/s 40A which is disallowance u/s 43B and the fourth which is in respect of DS etc. as against we note that in the profit and loss account, the assessee has debited a sum of under the head ‘rates taxes’ license and inspection The assessee has not provided detailed ledger ebited in profit and loss account. Thus of statutory dues under the expense head . But it is evident that nothe statutory dues payment has not been added profit and gains of the business or profession computation of the income. We find that this issue has already been directed by the Ld. CIT(A) for verification of the Therefore, we restore this and if same is not verified ld CIT(A), he is directed to verify the detail of the ledgers of expenses debited in profit and loss account amount of the statutory dues payable is not debited to the profit and loss account, then no addition would be required in the case. The ground of the appeal of the assessee is accordingly allowed for statistical purposes. 9. The ground No. 2 of the appeal of the assessee relates to addition of Rs.2,40,895/ payment for VAT, excise etc. T amount was already added in the computation of the income. 10. We have heard ri dispute and perused the relevant material on record. We find that the Ld. CIT(A) has directed the Assessing Officer for verification of the AO. On perusal of the computation of the income filed before us on paper book page 1, we find that amount of Rs.2,40,091/ already been added by the assessee in respect of interest payment for VAT , excise etc required. If the Assessing Officer has already not deleted this M/s Zenith Steel Tubes & Industries Ltd. dues payment has not been added profit and gains of the business or profession for the purpose of the computation of the income. We find that this issue has already been directed by the Ld. CIT(A) for verification of the Assessing Officer. we restore this issue to the file of the Assessing Officer and if same is not verified by him in compliance to the direction of he is directed to verify the detail of the ledgers of expenses debited in profit and loss account and if any of the amount of the statutory dues payable is not debited to the profit then no addition would be required in the case. The ground of the appeal of the assessee is accordingly allowed for No. 2 of the appeal of the assessee relates to addition of Rs.2,40,895/- on account of interest paid on delayed for VAT, excise etc. The assessee has claimed that this amount was already added in the computation of the income. We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. We find that the Ld. CIT(A) has directed the Assessing Officer for verification of the AO. On perusal of the computation of the income filed before us er book page 1, we find that amount of Rs.2,40,091/ already been added by the assessee in respect of interest for VAT , excise etc. Therefore, no further addition is required. If the Assessing Officer has already not deleted this M/s Zenith Steel Tubes & Industries Ltd. 7 ITA No. 2996/M/2022 dues payment has not been added back to the for the purpose of the computation of the income. We find that this issue has already been Assessing Officer. to the file of the Assessing Officer by him in compliance to the direction of he is directed to verify the detail of the ledgers of various and if any of the amount of the statutory dues payable is not debited to the profit then no addition would be required in the case. The ground of the appeal of the assessee is accordingly allowed for No. 2 of the appeal of the assessee relates to on account of interest paid on delayed he assessee has claimed that this amount was already added in the computation of the income. val submission of the parties on the issue-in- dispute and perused the relevant material on record. We find that the Ld. CIT(A) has directed the Assessing Officer for verification of the AO. On perusal of the computation of the income filed before us er book page 1, we find that amount of Rs.2,40,091/- has already been added by the assessee in respect of interest on delayed . Therefore, no further addition is required. If the Assessing Officer has already not deleted this addition, then he is directed to delete the addition of Rs.2,40,095/ in respect of interest paid on the delayed payments. The ground of the assessee is accordingly allowed. 11. The 3 rd ground of appeal of the assessee relates to disallowance of loss of Rs. Rs.7,61,260/- by taking old net profit rate of 0.27% i.e. net profit rate of earlier year. 12. We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. We find the Assessing Officer asked the assessee to produce details of the expenses debited under the profit and loss account containing name, address and PAN of the party and detail of the TDS along with copy of the invoices etc. But the assessee could not the documents except purchases worth more than Rs.10 lacs. the ground No. 4 of the appeal, the assessee has appropriate opportunity of being heard has been allowed to the assessee in presenting its evidence in support of re We find that the Ld. CIT(A) has assessee is observing as under: “13.1 I have carefully considered the facts of the case. I observed that the AO had issued and served a notice u/s 143(2) on 13.08.2018, however th any submission. During assessment proceedings, the notice u/s142(1) was issued by the AO on 13.09.2019 . The assessee had made submission in the month of December, 2019 ie. after more than 2 and half months time. The A.O. M/s Zenith Steel Tubes & Industries Ltd. then he is directed to delete the addition of Rs.2,40,095/ in respect of interest paid on the delayed payments. The ground of the assessee is accordingly allowed. ground of appeal of the assessee relates to disallowance of loss of Rs.1,46,17,249/- and further addition of by taking old net profit rate of 0.27% i.e. net profit We have heard rival submission of the parties on the issue dispute and perused the relevant material on record. We find the Assessing Officer asked the assessee to produce details of the expenses debited under the profit and loss account containing name, address and PAN of the party and detail of the TDS along with copy of the invoices etc. But the assessee could not the documents except purchases worth more than Rs.10 lacs. the ground No. 4 of the appeal, the assessee has contested appropriate opportunity of being heard has been allowed to the assessee in presenting its evidence in support of re We find that the Ld. CIT(A) has dismissed this ground of the assessee is observing as under: 13.1 I have carefully considered the facts of the case. I observed that the AO had issued and served a notice u/s 143(2) on 13.08.2018, however the Assessee has not filed any submission. During assessment proceedings, the notice u/s142(1) was issued by the AO on 13.09.2019 . The assessee had made submission in the month of December, 2019 ie. after more than 2 and half months time. The A.O. M/s Zenith Steel Tubes & Industries Ltd. 8 ITA No. 2996/M/2022 then he is directed to delete the addition of Rs.2,40,095/- in respect of interest paid on the delayed payments. The ground of ground of appeal of the assessee relates to and further addition of by taking old net profit rate of 0.27% i.e. net profit We have heard rival submission of the parties on the issue-in- dispute and perused the relevant material on record. We find that the Assessing Officer asked the assessee to produce details of the expenses debited under the profit and loss account containing name, address and PAN of the party and detail of the TDS along with copy of the invoices etc. But the assessee could not produce all the documents except purchases worth more than Rs.10 lacs. In contested that no appropriate opportunity of being heard has been allowed to the assessee in presenting its evidence in support of return of income. dismissed this ground of the 13.1 I have carefully considered the facts of the case. I observed that the AO had issued and served a notice u/s e Assessee has not filed any submission. During assessment proceedings, the notice u/s142(1) was issued by the AO on 13.09.2019 . The assessee had made submission in the month of December, 2019 ie. after more than 2 and half months time. The A.O. has given sufficient time to the AO to the appellant to submit the detail called by the AO. The submission of the appellant is considered by the AO while passing the Assessment order. During the appellate proceedings only written submission in 5 pages has been subm Accordingly, this ground of appeal is dismissed too. 13. Before us, the Ld. Counsel of the assessee submitted that the assessee is willing to produce all documentary evidence in support of expenses claimed and therefore, justice, we feel it appropriate to restore this issue back to the file of the Assessing Officer. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The ground No. 3 is allowed for statistical purposes whereas ground No. 4 of the appeal of the assessee is allowed. 14. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on Sd/- (ABY T VARKEY JUDICIAL MEMBER Mumbai; Dated: 26/04/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai M/s Zenith Steel Tubes & Industries Ltd. sufficient time to the AO to the appellant to submit the detail called by the AO. The submission of the appellant is considered by the AO while passing the Assessment order. During the appellate proceedings only written submission in 5 pages has been submitted, which is reproduced above. Accordingly, this ground of appeal is dismissed too. Before us, the Ld. Counsel of the assessee submitted that the assessee is willing to produce all documentary evidence in support of expenses claimed and therefore, in the interest of substantial e feel it appropriate to restore this issue back to the file of the Assessing Officer. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The ground or statistical purposes whereas ground No. 4 of the appeal of the assessee is allowed. In the result, the appeal of the assessee is allowed for nced in the open Court on 26/04 Sd/ ABY T VARKEY) (OM PRAKASH JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : M/s Zenith Steel Tubes & Industries Ltd. 9 ITA No. 2996/M/2022 sufficient time to the AO to the appellant to submit the detail called by the AO. The submission of the appellant is considered by the AO while passing the During the appellate proceedings only written submission in itted, which is reproduced above. Accordingly, this ground of appeal is dismissed too.” Before us, the Ld. Counsel of the assessee submitted that the assessee is willing to produce all documentary evidence in support in the interest of substantial e feel it appropriate to restore this issue back to the file of the Assessing Officer. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. The ground or statistical purposes whereas ground No. 4 of the In the result, the appeal of the assessee is allowed for 04/2023. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER 5. Guard file. //True Copy// M/s Zenith Steel Tubes & Industries Ltd. BY ORDER, (Assistant Registrar) ITAT, Mumbai M/s Zenith Steel Tubes & Industries Ltd. 10 ITA No. 2996/M/2022 BY ORDER, (Assistant Registrar) ITAT, Mumbai