ITO 5.3.1, MUMBAI, MUMBAI V. UBIQUE ALLOYS PVT. LTD., MUMBAI

MA 119/MUM/2025

AI Insights

The case involves a miscellaneous application by the revenue against the decision of the Income Tax Appellate Tribunal, which had dismissed the revenue's appeal on the grounds of low tax effect without considering the merits of the issue. The original dispute centered on the disallowance of interest on unsecured loans, which was previously added under section 68 of the Income Tax Act as accommodation entries. The revenue argued that this disallowance also falls under the exception clause as per the Board Circular No. 5/2024. However, the Tribunal, referencing a consolidated order that had dismissed similar appeals and deleted the quantum addition, found no grounds to recall their earlier decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777013 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 18-09-2025
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 05-05-2025
• Other Referred Cases: ITA No. 3243/Mum/2017
• Laws Referred To: Income Tax Act
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; DR
• Assessee Lawyers: RAJ KUMAR SINGH; AR VIRTUALLY APPEARED
• Keywords: Tax effect; Accommodation entries
• Section: 68

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI RAJ KUMAR CHAUHAN, HON’BLE JUDICIAL MEMBER M.A. No. 119/Mum/2025 I.T.A. No. 3202/Mum/2024 Assessment Year: 2009-10 Income Tax Officer, 5(3)(1), Mumbai Vs Ubique Alloys Pvt. Ltd. 6, Bhagirathi Bhuvan Mandrakumar Marg Panjarpole, Girgaon Mumbai - 400004 [PAN: AAACU1919P] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Rajkumar Singh, A/R (virtually appeared) Revenue by : Shri Leyaqat Ali Aafaqui, Sr. D/R सुनवाई की तारीख/Date of Hearing : 12/09/2025 घोषणा की तारीख/Date of Pronouncement : 18/09/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM : This miscellaneous applications by the revenue is arising out of the order of the Tribunal in ITA No. 3202/Mum/2024 dated 28/08/2024 2. The sum and substance of the present miscellaneous application is that the Tribunal dismissed the appeal of the revenue on low tax effect without considering merits of the issue involved. The AO had disallowed interest on unsecured loans which was added u/s 68 of the Act in earlier years which comes under exception clause as it was in the nature of accommodation entries. Therefore, the disallowance of interest also comes under the exception clause in terms of the Board Circular para 3.1 (h) of Circular No. 5/2024 dated 15/03/2024. Therefore, the order of the Tribunal should be recalled. Printed from counselvise.com M.A. No. 119/Mum/2025 2 3. We have carefully perused the contents of the miscellaneous application. Addition u/s 68 of the Act was made in AY 2007-08 being accommodation entry. We find that the Co-ordinate Bench in ITA No. 3243/Mum/2017 and others by a consolidated order dated 03/08/2018 has dismissed the appeal of the revenue. Thereby deleting the quantum addition. Since the quantum addition has been deleted by the ld. CIT(A) and confirmed by the Co-ordinate Bench, the payment of interest in subsequent years on the said loans cannot be disallowed. There is no mistake rectifiable u/s 254(2) of the Act in the order of the Tribunal. 4. In the result, miscellaneous application filed by the revenue is dismissed. Order pronounced in the Court on 18th September, 2025 at Mumbai. Sd/- Sd/- (RAJ KUMAR CHAUHAN) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 18/09/2025 * * * *SC SrPs SC SrPs SC SrPs SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. \u0015 थ / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai Printed from counselvise.com "