CONCENTRIX SERVICES INDIA LIMITED (FORMERLY KNOWN AS MINACS PRIVATE LIMITED)MINACS LTD, MUMBAI V. DY DCIT,CIRCLE 10(2)(2), MUMBAI

MA 548/MUM/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 3649 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-02-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: K
• Next Hearing Date: 14-12-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 14-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAKASH D CHOUGHULE
• Keywords: Additional evidence
• Section: 37; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND SHRI KULDIP SINGH, JM MA No. 548/Mum/2023 Arising out of ITA No. 1235/Mum/2015 (Assessment Year 2010-11) Concentr i x Ser vice s India Lim ited (Fo rm erl y kno wn a s M inacs Pri vate Lim i ted) 9 th Floo r, S ym phon y IT Park Chandi va li Farm R d Andheri (E ), Mum bai-400 072 Vs. Dy. DCIT, Circle 10(2)(2) Room No.209, Aaykar Bhavan M.K. Road, Mumbai-400 020 (Applicant) (Respondent) PAN No. AAACT1567A Assessee by : Shri Yogesh Thar, AR Revenue by : Shri Prakash D Choughule, DR Date of hearing: 15.12.2023 Date of pronouncement : 26.02.2024 O R D E R PER PRASHANT MAHARISHI, AM: 01. This miscellaneous application is filed by the assessee in ITA number 1235/M/2015 for assessment year 2010 – 11 dated 12/6/2023 stating that there is no order of admission and consequent adjudication of additional ground of appeal relating to disallowance of premium paid on account of repayment of optionally convertible debenture under section 37 of the act. Page | 2 MA No. 548/Mum/2023 Concentrix Services India Pvt. Ltd; A.Y. 2010-11 02. The learned authorized representative reiterating the miscellaneous application stated that assessee has filed an additional ground by the application dated 16 March 2018 wherein it was claimed that the learned assessing officer be directed to allow deduction of the proportionate premium paid on repayment of optionally convertible debenture amounting to ₹ 33,860,754/–. He further referred to the paragraph number 8 of the order of the coordinate bench wherein the above ground of appeal is raised, wherein it has been noted that there is an additional ground of appeal on 16 March 2018 with respect to some claim for assessment year 2014 – 15, however no arguments were made for admission of the ground or asking for any other relief. He stated that there were detailed arguments made with respect to the admissibility of the additional ground and on merits of the additional ground and assessee was also directed to file a brief synopsis with respect to the additional ground of appeal apart from other grounds of appeal. The assessee has filed such a submissions. Further chart was also filed wherein several judicial precedents were relied upon. Therefore, non-adjudication of such ground with respect to its admission and on merits makes the order of the coordinate bench erroneous to that extent which requires to be rectified. 03. The learned departmental representative submitted that in paragraph number 8 of order the coordinate bench has given a specific finding that no arguments were made for admission of the ground and asking for any other relief Page | 3 MA No. 548/Mum/2023 Concentrix Services India Pvt. Ltd; A.Y. 2010-11 and that too for different assessment year i.e. 2014 – 15, therefore there is no error in the order of the coordinate bench. 04. We have carefully considered the rival contention and perused the order of the coordinate bench dated 12/6/2023. We find that in paragraph number 8 the coordinate bench has recorded that assessee has made an application for admission of the additional ground of appeal on 16 March 2018 with respect to some claim for assessment year 2014 – 15, however no arguments were made before the bench for admission or asking any other relief and therefore application of admission of additional ground was dismissed. 05. On record, we find that by letter dated 16 March 2018 the assessee has filed an additional ground of appeal as under:- "on the facts and in the circumstances of the case and in law, the learned AO be directed to allow deduction for proportionate premium paid on repayment of optionally convertible debentures amounting to ₹ 33,860,754/–" 06. In the same application, assessee has stated that assessee has issued compulsorily convertible debentures of ₹ 250 crores on 5 January 2010. On 30 January 2014, the assessee changed the terms of CCD to optionally convertible debentures of the same value of Rs 250 crores in accordance with the provisions of the company law. On Page | 4 MA No. 548/Mum/2023 Concentrix Services India Pvt. Ltd; A.Y. 2010-11 26 March 2014, the said OCD were repaid along with the premium of Rs. 130 crores. The proportionate premium for assessment year 2010 – 11 relating to business activity is ₹ 3,38,60,754/–. At the time of filing of its return for assessment year 2014 – 15 the assessee has made alternate claim by way of notes to the return of income for allowance of the said premium in assessment year 2014 – 15 i.e. in the year of redemption. The assessment proceedings for assessment year 2014 – 15 are completed and the assessing officer as per order dated 21 December 2017 has rejected the assessee's claim for deduction of the premium. Therefore, to protect the interest of the assessee in case of such a disallowance, the assessee has made a claim for allowance of the aforesaid premium paid by way of an additional ground. 07. Assessee has also made and application dated 14 November 2018 on this issue for admission of additional evidence. Therefore, on 14 November 2018, there is an application for admission of additional evidence and on 16 March 2018, there is an additional ground raised by the assessee. 08. In the order of the coordinate bench, neither the additional evidences were admitted/rejected nor the additional ground was also admitted or rejected, therefore, the order suffers from a mistake. 09. Accordingly, the above-impugned order is recalled to decide on admission of the additional ground of appeal raised by letter dated 16 March 2018. Page | 5 MA No. 548/Mum/2023 Concentrix Services India Pvt. Ltd; A.Y. 2010-11 010. To that extent, the miscellaneous application of the assessee is allowed and registry is directed to fix the appeal of the assessee to adjudicate on the admission of the additional ground and thereafter to proceed, if admitted, to adjudicate the same. 011. Accordingly, miscellaneous application is allowed. Order pronounced in the open court on 26.02. 2024. Sd/- Sd/- (KULDIP SINGH) (PRASHANT MAHARISHI) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Mumbai, Dated: 26.02. 2024 Sudip Sarkar, Sr.PS/Dragon Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Mumbai