MFA CAPITAL PRIVATE LIMITED,MUMBAI V. ACIT- CIRCLE 10(2)(2) , MUMBAI

ITA 6403/MUM/2024

AI Insights

The case involves MFA Capital Private Limited, the Appellant, challenging an order from the National Faceless Appeal Centre (NFAC), Delhi, which had dismissed their appeal against an Assessment Order for the Assessment Year 2016-2017. The main issues in the original appeal included disallowance of sales promotion expenses, denial of claims for employees' contributions to PF and ESIC, and denial of claims for interest on delayed payment of TDS. During the Tribunal proceedings, the Appellant indicated their participation in the 'Vivad Se Vishwaas Scheme, 2024', aiming for a settlement, which led to the withdrawal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32725 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Keywords: Condonation of delay; TDS
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL \"D” BENCH, MUMBAI SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.6403/MUM/2024 (Assessment Year: 2016-2017) MFA Capital Private Limited 301, Narain Chambers, Mahatma Gandhi Road, Vile Parle East, Mumbai - 400057 Maharashtra [PAN: AAHCM1424C] …………. Appellant Assistant Commissioner of Income Tax, Circle 10(2)(2), Mumbai Aayakar Bhavan, Maharishi Karve Road, Mumbai – 400020. Maharashtra Vs …………. Respondent Appearance For the Appellant/Assessee For the Respondent/Department : : Shri Chetna Bohra Shri R. R. Makwana Date Conclusion of hearing Pronouncement of order : : 06.02.2025 25.02.2025 O R D E R Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal the Assessee has challenged the order dated 12/09/2024, passed by the National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as the ‘CIT(A)’], whereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Assessment Order, dated 14/12/2018, passed under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year 2016-2017. 2. The delay of 9 days in filing the present appeal is condoned for the reasons stated in application seeking condonation of delay which is supported by affidavit. 3. The Assessee has raised following grounds of appeal : “1. The disallowance of sales promotion expenses to the tune of ITA No.6403/MUM/2024 Assessment Year: 2016-2017 2 INR.58,91,732/- without considering the documentary evidence and submissions submitted during the proceedings and the same is bad in law, void-ab-initio; 2. The denial of the claim of expenses for employees for employees contribution to PF and ESIC amounting to INR.54,767/- on account of payment made beyond the due date as referred to in section 36(1)(va) of the Income Tax Act, 1961 (herein after referred as “the Act”) but before filing return of income u/s.139(1); 3. Denying the claim of expenses of interest on delayed payment of TDS amounting to INR.1,00,916/- on account of interest expenditure treating it as penal in nature, is bad in law and the same to be deleted or be appropriately reduced u/s.37(1) of the Act.” 4. When the appeal was taken up for hearing the Learned Authorised Representative for the Appellant/Assessee submitted that the Appellant/Assessee has filed application under the ‘The Direct Tax – Vivad Se Vishwaas Scheme, 2024’ opting for settlement. In this regard reliance was placed on letter, dated 13/01/2025, filed by the Assessee whereby Declaration in Form 1 [Acknowledgement Number 759264870181224] and the Certificate by the Assessee in Form 2 [Acknowledgement Number 793676841311224] were placed on record. Given the aforesaid, the present appeal preferred by the Assessee is dismissed as withdrawn with liberty to the Assessee to revive the same in case the aforesaid application filed by the Assessee does not result in settlement of dispute by way of filing miscellaneous application before the Tribunal as per the provisions of the Act within the period prescribed. In terms of aforesaid the present appeal is dismissed as withdrawn. Order pronounced on 25.02.2025. Sd/- Sd/- (Girish Agrawal) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 25.02.2025. Dhananjay Kumar, Sr. PS ITA No.6403/MUM/2024 Assessment Year: 2016-2017 3 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध, आयकर अपीलीय अदधकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai "