MARS MERCANTILES PVT.LTD.,DHANBAD V. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, DHANBAD, DHANBAD

ITA 64/RAN/2022

AI Insights

Mars Mercantiles Pvt. Ltd. filed an appeal against the order of the CIT(A), Patna-3, concerning the assessment year 2017-18. The appeal was based on the grounds that certain expenses were incorrectly treated as capital or revenue, and some expenditures were disallowed. The company faced internal management changes leading to police complaints and FIRs, which were still pending. The Tribunal considered the ongoing criminal proceedings and the unavailability of certain statements for rebuttal by the assessee. Both parties agreed to restore the matter to the Assessing Officer, who would await the criminal proceedings' outcome before finalizing the assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633541 (ITAT-RANCHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No. 64/Ran/2022 (Assessment Year: 2017-18) Mars Mercantiles Pvt. Ltd., Adarsh Nagar, Hirapur, Dhanbad-826001 (Jharkhand) PAN No. AADCM 4232 G Vs. A.C.I.T., Central Circle, Dhanbad. Appellant/ Assessee Respondent/ Revenue Assessee represented by Sri Devesh Poddar, A.R. Department represented by Shri Khub Chand Pandya, Sr. DR Date of hearing 09/06/2025 Date of pronouncement 09/06/2025 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the learned CIT(A), Patna-3, Patna in appeal No. CIT(A), Dhanbad/10144/2019-20 dated 30/06/2022 for the A.Y. 2017-18. 2. Shri Devesh Poddar, ld A.R. is represented on behalf of the assessee and Shri Khub Chand Pandya, ld. Sr.DR is represented on behalf of the revenue. It was submitted by the ld. AR that the assessee is a company and there has been certain misappropriations. It was a submission that on account of the change in the management of the assessee company, certain police complaints have been filed and FIRs have also been lodged. It was the submission that on the basis of certain statements recorded from some of the employees of the assessee company, the assessment has been made in the case of assessee wherein certain expenses which were revenue in nature has been treated as capital and ITA No. 64/Ran/2022 Mars Mercantiles Pvt. Ltd. Vs ACIT 2 certain capital expenses have also been treated as revenue. It was also the submissions that certain expenditures have also been disallowed. To specific query as to what is the status of the police complaints filed and the FIRs lodged, it was submitted that the proceedings are still pending. It was the further submission by the ld. AR that the statements recorded have not been provided to the assessee for rebuttal. It was a prayer that in the interests of justice, the issues in this appeal could be restored to the file of Assessing Officer for readjudication and to grant the assessee an opportunity to examine such persons. 3. In reply, the learned Sr. DR submitted that he had no objection to restoring the issue to the file of Assessing Officer. It was the submissions by the ld. Sr.DR that the Assessing Officer may be directed to await the decision in the criminal proceedings and then to proceed with the assessment. 4. We have considered the rival submissions. As it is noticed that the present appeal is also connected to certain criminal proceedings which are still proceeding. In the interest of justice, the issues in this appeal are restored to the file of Assessing Officer for readjudication. The Assessing Officer shall await the final decisions in the criminal proceedings which are pending. The assessee shall intimate the Assessing Officer in regard to the finality of the proceedings in the criminal proceedings. Subsequent to the finality of the criminal proceedings, the Assessing Officer shall proceed with the assessment. Should the Assessing Officer rely upon any evidence i.e. incremental and against the assessee, the Assessing Officer shall give the assessee opportunity to cross examine and rebut such evidences. ITA No. 64/Ran/2022 Mars Mercantiles Pvt. Ltd. Vs ACIT 3 5. In the result, appeal of the assessee is partly allowed for statistical purposes. Order announced in open court on 09th June, 2025. Sd/- Sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated: 09/06/2025 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Ranchi "