Kishan Mundra, Indore V. The ITO 3(2), Indore

ITA 345/Ind/2022

AI Insights

The case involves an appeal by Kishan Mundra against the order of the Commissioner of Income Tax (Appeals), which confirmed the disallowance of certain expenses claimed under section 57 of the Income Tax Act, 1961, for the Assessment Year 2017-18. The primary contention was the disallowance of interest expenditure against income from other sources due to lack of supporting evidence. The assessee argued that he was not given a sufficient opportunity to present his case or supporting documents at the appellate level. The Tribunal noted the assessee's submission of additional evidence and decided that the matter should be remanded to the Assessing Officer for a thorough examination of this new evidence and to provide the assessee an opportunity to be heard.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130608 (ITAT-INDORE)
• Duration Of Justice: 9 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-07-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 21-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Corroborative evidences; Tax effect; Set aside

Judgement Text

Page 1 of 3 आयकर अपील य अ धकरण, इंदौर यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No. 345/Ind/2022 (Assessment Year:2017-18) Kishan Mundra 108, Shalimar Corporate Centre 8-B, South Tukoganj Indore Vs. ITO-3(2) Indore (Appellant / Assessee) (Respondent/ Revenue) PAN: ABZPM 1576 H Assessee by Shri Ashish Porwal & N.D. Patwa, ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 19.07.2023 Date of Pronouncement 21 .07.2023 O R D E R Per Vijay Pal Rao, JM: This appeal by the assessee is directed against the order dated 06.09.2022 of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2017-18. The assessee has raised following grounds of appeal: “On the facts and the circumstances of the case: 1. That the Id CIT(A), NFAC was not justified in confirming the assessment order, which is bad-in-law, void ab initio, barred by limitation, illegal, contrary to the facts and circumstances of the case, liable to be annulled. ITA No.345/Ind/2022 Kishan Mundra Page 2 of 3 Page 2 of 3 2. The Id CIT(A), NFAC was not justified in providing sufficient opportunity to the appellant to furnish document or reply in support of the claim and confirming the addition. 3. The Id CIT(A), NFAC was not justified in disallowing the expenses amounting to Rs. 30,64,307/- u/s. 57 of the Income Tax Act, 1961. (Tax Effect- Rs. 7,66,000/-)” 2. At the time of hearing Ld. AR of the assesse has submitted that Ld. CIT(A) has passed impugned order ex-parte for want of supporting evidence in respect of claim of expenditure u/s 57 of the Act. He has further submitted that the AO has disallowed the claim of interest expenditure against the income from other sources for want of supporting evidence and therefore, the assesse wanted to produce evidence in support of the said claim before the Ld. CIT(A) however the Ld. CIT(A) has also passed impugned order ex –parte. Thus, the Ld. AR has pleaded that the assesse may be granted one more opportunity to present his case before the Ld. CIT(A). He has also filed an application for admission of additional evidences with additional evidence sought to be produced before the tribunal which is relevant for deciding the issue of claim of expenditure and therefore, the same may be admitted. 3. On the other hand, ld. DR has fairly submitted that since the claim of the assesse was disallowed by the AO for want of evidence and assesse even did not file any evidence before the Ld. CIT(A) therefore, it would be proper if matter is remanded to the record of the AO for verification and examination of the evidence to be filed by the assesse. 4. Having considered rival submission as well as relevant material on record we note that the only issue arises in this appeal is regarding disallowance of interest expenditure against the income from other sources which was disallowed by the AO for want of supporting evidence. The appeal filed by the assesse was also dismissed by the ld. CIT(A) due to non-appearance and non-furnishing of supporting evidence. Now the assesse has filed the additional evidence running into 162 pages. Since this additional evidence is filed first time before this tribunal and had not been examined by the AO as well as by the Ld. CIT(A) therefore, in the ITA No.345/Ind/2022 Kishan Mundra Page 3 of 3 Page 3 of 3 facts and circumstances of the case we are of the considered opinion that the additional evidence filed by the assesse shall be examined at the level of the AO. Accordingly, the impugned order of the Ld. CIT(A) is set aside and matter is remanded to the record of the AO for deciding the issue of claim of deduction u/s 57 of the Act after verification and examination of the additional evidence filed by the assesse as well as after giving opportunity of hearing to the assesse. 5. In the result, appeal of assessee is allowed for statistical purposes. Order in pronounced in Open Court on 21/ 07/2023. Sd/- Sd/- (B.M. BIYANI) (VIJAY PAL RAO) Accountant Member Judicial Member Indore, 21 .07.2023 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore