MP BORDER CHECKPOST DEVELOPMENT CO LTD., MUMBAI V. ITO - 14(2)(2), MUMBAI

ITA 484/MUM/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9256 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 30-03-2021
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(3); 250; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER ITA No. 484/Mum/2021 (A.Y: 2012-13) MP Border Checkpost Development Company Ltd., The IL & FS Financial Centre, Plot C-22, G- Block, BKC, Bandra (E) Mumbai – 400051. Vs. ITO – 14(2)(2) 453, 4 th Floor, Aayakar Bhavan, Mumbai – 400020. ./ज आइआर ./PAN/GIR No. : AAGCM8030K Appellant .. Respondent Appellant by : None Respondent by : Shri. Pramod Nikalje.DR Date of Hearing 14.06.2022 Date of Pronouncement 15.06.2022 आद श / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Appeal) – 22, Mumbai passed u/s 143(3) and 250 of the Act. The assessee has raised the following grounds of appeal: 1 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w, th e Le ar n e d C o m mi s s io n e r of In co me - t ax ( A pp e als) - 2 2 ( 'C IT - A " ) e r re d in p a s s in g th e o r d e r d a te d 2 8 F e bruar y 2 0 1 9 ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 2 - wi th o u t co n s id e r in g th e f ac ts av ai l abl e on re c o rd an d su bm i ss io n s mad e b y th e ap pe l l an t. 2 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w, th e Le ar n e d C IT - A e r r ed in u ph o l d in g th e ac tion o f A s se s s in g of f ic e r ( 'A O ' ) qu a tr e a ti n g t h e in te r e s t in co me e ar n e d by th e a p pe l l an t am o u n tin g to R s. 5 ,1 8 ,2 0 9 / - u n d er th e h e ad " In c o me f ro m o th e r so u r ce s" i n s te ad of th e h e ad " In c o me f ro m B u s in e s s " 3 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w, th e ap p e l l an t pr ay s th a t th e ad d i tio n m ad e b y th e Le ar n e d A O an d u ph el d b y C IT - A am o u n tin g to R s . 5 ,1 8 ,2 0 9 /- u n d e r th e h e ad " In c o me f ro m o th e r s o u rc es" sh al l b e d el e te d . 4 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w th e a p pe l l an t p r ays to re s to r e th e c l a i m o f th e ap pe l l an t th a t th e su m o f R s . 5 ,1 8 ,2 0 9 /- m ay be re du ce d f ro m th e to t al v al u e o f c ap i t al wo r k i n pr o g r e s s and th e s a me sh al l n o t b e t ax e d u n d er th e h e ad " In c o me f r o m o th e r so u r c e s " . 5 . Wi th o u t pr e ju d ic e to g r o u n d n o s. 2 to 4 , th e ap pe l lan t pr ay s th a t th e Le ar n e d C IT - A e r r e d in r e je c ti n g th e c l a i m o f th e ap pe l l an t th a t th e i n te r e s t p ay me n t b e al l o we d a s d e d u c tio n ag a in s t t h e in te r e s t in c o me an d th e n e t in te r e s t in c o me b e c h ar ge d to t ax i n l ie u o f R s . 5 ,1 8 ,2 0 9 /- u n d er th e h e ad In co me f r o m O th e r S o u r c e s . 6 . Wi th o u t pr e ju d ic e to g r o u n d n o s. 2 to 4 , th e ap pe l lan t pr ay s th a t o n th e f ac ts an d in th e c ir cu ms t an ce s o f th e cas e an d in l a w, th a t if th e s u m o f R s. 5 , 1 8 , 2 0 9 / - i s c o n s ide r ed as c h ar g e ab l e to tax u n d e r th e h e ad " In co me f r o m o th e r so u r c e s " th e n to su c h e x te n t i ts e x p e n d i t u r e on c api t al wo r k in p r o g r e s s m ay be co n s e q u en ti al l y in c r e a se d . 7 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w an d wi th o u t pr e ju d ice to gr o u n d n o s . 2 to 6 , the ap pe l l an t p r ays th a t th e l e ar n e d C IT - A o u g h t to h ave c o n s id e r ed th e ap p e l l an t' s c l ai m of ex pe n d i tu r e amou n tin g to R s. 1 , 5 0 ,0 0 0 /- b e in g E mp l o ye e be n ef i t e x pe n s e s an d R s . 6 9 ,5 6 ,3 8 9 /- be in g O th e r E x pe n s e s to t al in g to R s . ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 3 - 7 1 ,0 6 ,3 8 9 / - as al l o wabl e d e d u c tio n u n d e r s e c tio n 3 7 of th e IT A c t. 8 . W i th o u t pr e ju d ic e to G r o u n d N o .7 , th e a p p e l l an t pra ys th a t th e su m o f R s. 7 1 , 0 6 ,3 8 9 /- b e ad d e d to th e c ap i t al wo r k in pr o gr e s s an d th e s a me ma y be al l o we d to th e c ar r y f or war d a s a p a r t of c ap i t al wo r k in p ro gr e s s . 9 . O n th e f ac ts an d in th e ci rc u m s t an c e s of th e c as e an d in l a w, th e app e l l an t d e n ie s th e l i ab il i t y f o r p a yme n t of in te r e s t u /s . 2 3 4 D an d pr ay s th a t th e i n te r e s t l e v ie d of R s . 1 4 ,1 5 5 sh al l b e d e l e te d T h e appe l l an t c r av e s th e pe r mi s s i o n to ad d , al te r, am e n d , mo d if y, r e s c in d , s u p pl e me n t, v ar y, wi th d r a w o r o th er wi s e mo d if y th e g r o u n d s ta ke n h e r e in abo v e e i th e r b ef o re o r at t h e ti m e o f h e ar in g o f th i s app e al 2. The brief facts of the case are that the assessee company is engaged in the business of construction of Border Check post on BOT basis. The assessee has filed the return of income electronically for the A.Y 2012-13 on 24.09.2012 declaring a total income of Rs. Nil. Subsequently, the case was selected for scrutiny under CASS and notice u/s 143(2) and 142(1) of the Act along with questionnaire was issued. In compliance to the notice the Ld. AR of the assessee appeared from time to time and submitted the details and the case was discussed. The AO on perusal of the financial statements found that the interest income was not offered for taxation and was reduced ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 4 - from the capital work-in-progress (WIP). Further the A.O. relied on Form.No.26AS and the explanations were filed by the assessee on 16.02.2015 in respect of Bank deposits and interest income. But the AO is of the opinion that the income cannot be allowed to the set off against the capital work in progress and finally observed that the interest income of Rs. 5,18,209/- is taxable under income from other sources and assessed the total income of Rs.5,18,210/- and passed the order u/s 143(3) of the Act dated 23.03.2015. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A), the CIT(A) considered the grounds of appeal, submissions of the assessee and issued notice to the assessee but there was no compliance and therefore considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal. ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 5 - 4. At the time of hearing, none appeared on behalf of the assessee and the Ld.DR supported the order of the CIT(A). 5. We heard the Ld. DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. We find the Ld.CIT(A) has issued the notices of hearing referred at page 2 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. We find that the assessee has raised grounds of appeal challenging the additions of the assessing officer and there could be various reasons for non appearance which cannot be overruled. We considering the principles of natural justice shall provide one more opportunity of hearing to the ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 6 - assessee to substantiate the case before the CIT(A) along with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should cooperate in submitting the information for early disposal of the appeal and allow the grounds of appeal of the assessee statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 15.06.2022. Sd/- Sd/- ( GAGAN GOYAL) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 15.06.2022 KRK, PS /Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. आ र आ / The CIT(A) 4. आ र आ ( ) / Concerned CIT ITA No. 484/Mum/2021 MP Border Checkpost Development Company Ltd.,, Mumbai - 7 - 5. "#$ % & &' , आ र ) र*, Mumbai / DR, ITAT, Mumbai 6. % +, - . / Guard file. ान ु सार/ BY ORDER, " & //True Copy// 1. ( Asst. Registrar) ITAT, Mumbai