M/S. HOWRAH FORGINGS LTD.,KOLKATA V. ACIT, CIRCLE 1(1), KOLKATA

ITA 61/KOL/2025

AI Insights

The case involves M/s Howrah Forgings Ltd., the appellant, contesting an order from the Ld. Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Mumbai, concerning the assessment year 2023-24. The primary contention revolves around the addition made under section 41 of the Income Tax Act, 1961, amounting to Rs. 2,94,957, which was initially disallowed by the CPC. The assessee argued that the deduction claimed was valid, supported only by a ledger copy, which the CPC found insufficient. The Tribunal noted a procedural issue with the non-speaking order from the Ld. JCIT(A)-1 and decided to remand the case for a detailed, reasoned decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360562 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-05-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2023-2024
• Other Referred Cases: ITA No. 60/Kol/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROMA CHAUDHARY
• Assessee Lawyers: DEEPAK MUNDHRA
• Section: 139(5)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 61/Kol/2025 Assessment Year: 2023-24 M/s Howrah Forgings Ltd., 18, R.N. Mukherjee Road, Kolkata - 700001 (PAN: AAACH6139E) Vs. Circle 1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata - 700069 (Appellant) (Respondent) Present for: Appellant by : Shri Deepak Mundhra Shri Sharad Joshi, AR Respondent by : Roma Chaudhary, JCIT, Sr. DR Date of Hearing : 20.05.2025 Date of Pronouncement : 20.05.2025 O R D E R Per Bench : The captioned appeal by the assessee is against the order of the Ld. Commissioner of Income Tax (Appeal), Addl/JCIT(A)-1, Mumbai [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/APL/S/250/2024-25/1071171365(1)(1) dated 11.12.2024, passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2023-24. 2. Shri Deepak Mundhra and Sharad Joshi, AR are represented on behalf of the assessee and Roma Chaudhary appeared on behalf of the revenue. 3. On perusal of the order of the Ld. JCIT(A)-1, Mumbai, it is seen that his findings are at pages 10-11 of his order. The said findings read as follows: 2 ITA No. 61/Kol/2025 M/s Howrah Forgings Ltd. AY 2023-24 “Decision The original return of income filed on 19.10.2023 declaring total income of Rs. 8,00,46,630/- and latter on revised u/s 139(5) filed on 04.12.2023 declaring total income of Rs. 8,03,41,590/-. The return of income was processed u/s 143(1) on 22.12.2023 determining total income of Rs. 80,34,590/- u/s 41 of the Act. Aggrieved by the addition made by the CPC the assessee made an appeal to M/s. National Faceless Assessment Center. Addition made u/s.41 of the Act by the CPC of Rs.2,94,957/- is correct. Deduction made by the assessee is existence business in that year or not. Assessee has also failed to filed proof of deduction in that year. Assessee had produced only ledger copy & claimed deduction & exemption is not correct. So, the CPC has correctly made disallowance. On this ground appeal of the assessee is dismissed.” 4. We would like to refer to the decision in the assessee’s own case in ITA No. 60/Kol/2025 for the assessment year 2016-17, where also a non-speaking order has been passed by the Ld. JCIT(A)-1, Mumbai. Accordingly, and on the basis of reasoning given in the assessee’s appeal in ITA 60/Kol/2025 the issues in this appeal are also restored to the file of Ld. JCIT(A)-1, Mumbai, who is directed to pass a speaking order and also take note of the observations of this Bench in the assessee’s own case in ITA No. 60/Kol/2025. 5. Also, this Tribunal is suo-moto invoking powers of section 254(1) of the Act and staying the demand in the said appeal till disposal of this appeal by the Ld. JCIT(A)-1, Mumbai by passing a speaking order. 6. In the result, the appeal of the assessee is partly allowed for statistical purposes. Sd/- Sd/- (Sanjay Awasthi) (George Mathan) Accountant Member) Judicial Member Dated: 20th May, 2025 AK, Sr. P.S. 3 ITA No. 61/Kol/2025 M/s Howrah Forgings Ltd. AY 2023-24 Copy to: 1. The Appellant: M/s Howrah Forgings Ltd. 2. The Respondent: Circle 1(1), Kolkata 3. CIT(A) 4. Pr. CIT- 5. DR, ITAT, Kolkata Bench, Kolkata 6. Guard file. //True Copy// By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "