MAHANAGAR TELEPHONE NIGAM LTD,DELHI V. ACIT,CIRCLE-1 LTU, NEW DELHI

ITA 1667/DEL/2025

AI Insights

The case involves Mahanagar Telephone Nigam Limited (MTNL), the appellant, contesting an order from the Addl./Joint Commissioner of Income Tax (Appeals)-2, Mumbai, which arose from an assessment order by the ACIT, Circle-1, New Delhi, for the Assessment Year 2009-10. The primary issue was the treatment of facility advance rental recovered by MTNL, which was adjusted against due amounts from connections, and whether these customer deposits should be considered as income. The tribunal noted that a similar reconciliation for AY 2008-09 was accepted, and thus, directed the CIT(A) to re-evaluate the matter with the new reconciliation provided by MTNL.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782823 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 19-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: VED JAIN
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘G’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTNAT MEMBER ITA No.1667/Del/2025 [Assessment Year: 2009-10] Mahanagar Telephone Nigam Limited, 5th Floor, Mahanagar Doorsanchar Sadan, 9, CGO Complex, Lodhi Road, New Delhi-110003 Vs ACIT, Circle-1, LTU, New Delhi PAN-AAACM0828R Appellant Respondent Assessee by Shri Ved Jain, Advocate and Shri Ayush Garg, CA Revenue by Shri Manish Gupta, Sr. DR Date of Hearing 18.09.2025 Date of Pronouncement 30.10.2025 ORDER PER ANUBHAV SHARMA, JM, This appeal has been preferred by the assessee against order dated 20.01.2025 of the learned Addl./Joint Commissioner of Income Tax (Appeals)- 2, Mumbai, in Appeal No.CIT(A), Delhi-22/10271/2018-19, arising out of order dated 31.12.2018 passed u/s 143(3) r.w.s. 254 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ACIT, Circle-1, New Delhi, pertaining to Assessment Year 2009-10. 2. On hearing both the sides, we find that the issue was restored to the files of the ld.CIT(A) to give proper opportunity to the MTNL to provide Printed from counselvise.com 2 ITA No.1667/Del/2025 reconciliation of the disputed issue. The ld. AR has pointed out that full reconciliation was done and the auditor removed the note, however, the same was not taken into consideration by the ld. tax authorities below. It was pointed out that in AY 2008-09 the reconciliation was submitted and the same has been accepted by the ld.CIT(A) and the appeal of the assessee was allowed by subsequent order dated 26.3.2025. The issue is with regard to surrender of facility advance rental recovered which was supposed to be adjusted by the assessee against the due pending against the connections. The outstanding customer deposits cannot be income of the assessee company. Thus, the assessee is given an opportunity to submit the reconciliation before the ld.CIT(A) and taking into consideration the benefit given to assessee for AY 2008-09, the appeal shall be decided afresh. The appeal is allowed for statistical purposes. The ld. CIT(A) shall pass a fresh order in accordance with the law. Order pronounced in the open court on 30th October, 2025. Sd/- Sd/- Sd/- [MANISH AGARWAL] [ANUBHAV SHARMA] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30.10.2025 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "