NABH CONSTRUCTION AND DEVELOPERS PVT. LTD,MUNIKIRETI V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE(4)(1), RISHIKESH

ITA 27/DDN/2022

AI Insights

The case involves Nabh Construction and Developers Pvt. Ltd, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which upheld the assessment order passed by the Assessing Officer under section 143(3) of the Income-tax Act, 1961. The assessment included additions for outstanding wages, disallowed hospitality expenses, and additions related to sundry creditors. The Tribunal, after hearing the arguments and considering the documents presented, decided to restore the appeal to the CIT(A) for a fresh examination, allowing the assessee to present additional evidence and arguments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46837 (ITAT-DEHRADUN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMAR PAL SINGH
• Assessee Lawyers: K. K. JUNEJA
• Keywords: Additional evidence
• Section: 143(3); 37(1)

Judgement Text

"Page | 1 THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH “SMC”, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through Video Conferencing) ITA No. 27/DDN/2022 (Assessment Year: 2017-18) Nabh Construction and Developers Pvt. Ltd, Thalwal Complex, Dhalwala, Post Munikireti-249137 Vs. ACIT, Circle-1(4)(1), Rishikesh (Appellant) (Respondent) PAN: AADCN7045A Assessee by : Shri K. K. Juneja, Adv Revenue by: Shri Amarpal Singh, Sr. DR Date of Hearing 21/03/2025 Date of pronouncement 09/04/2025 O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in ITA No. 27/DDN/2024 for AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in ITBA/NFAC/S/250/2021- 22/1040862987(1) dated 16.03.2022 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 09.12.2019 by the Assessing Officer, ACIT, Circle-1(4)(1), Rishikesh (hereinafter referred to as ‘ld. AO’). 2. The assessee has raised the following grounds of appeal before us:- “1. Because the AO was not justified the addition of Rs. 32,42,175/- only which was related to outstanding payment of workers. ITA No. 27/DDN/2022 Nabh Construction and Developers Pvt. Ltd Page | 2 2. Because the AO was also not justified the addition of Rs. 27,40,268/- only which was related to expenditure toward temporary labour huts at various sites and labours meal expenses provided by the assessee. 3. Because the AO was further not justified the addition of Rs. 50,80,301/- only which was related to the outstanding credit balances of the Creditors. 3. We have heard the rival submission and perused the material available on record. The assessee is a private limited company engaged in the business of civil construction work with Govt department and was also doing the business of trading. The return of income for AY 2017-18 was filed by the assessee company on 18.09.2017 declaring total income of Rs. 51,01,150/-. The assessee filed the tax audit report in Form 3CA and Form 3CD along with its annexures before the ld AO. The scrutiny assessment was completed u/s 143(3) of the Act on 09.12.2019 determining the total income of the assessee at Rs. 1,61,64,494/- after making the following additions:- a. Addition towards current liabilities on account of outstanding wages payable:- Rs. 32,42,775/- b. Disallowances of hospitality of expenses u/s 37(1) of the Act- Rs. 27,40,268/- c. Addition towards sundry creditors having balance more than 5 lakhs- Rs. 50,80,301/- 4. The said assessment was upheld by the NFAC. The ld AR before us prayed for one more opportunity to be given to the assessee so that the entire details could be placed before the ld CIT(A). He also placed on record the various documents in the paper book together with confirmation from certain parties in the paper book. No serious objections were raised by the ld DR before us for restoration of this appeal to the file of the ld AO. Considering the same, we deem it fit and appropriate to restore this appeal ITA No. 27/DDN/2022 Nabh Construction and Developers Pvt. Ltd Page | 3 to the file of the ld CIT(A) for de novo adjudication in accordance with law. The assessee is at liberty to file additional grounds, if any, and additional evidences, if any, in support of its contentions. The ld CIT(A) is directed to admit those evidences and pass an order considering those evidences, uninfluenced by observations made earlier by his/her predecessor. Accordingly, grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 09/04/2025. -Sd/- -Sd/- (SATBEER SINGH GODARA) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 09/04/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi "