PAWANKUMAR FAKIRCHAND GUPTA,MUMBAI V. COMMISSIONER OF INCOME TAX APPEAL, DELHI

ITA 919/MUM/2025

AI Insights

This case involves an appeal by Pawankumar Fakirchand Gupta against the order of the Learned Commissioner of Income-tax (Appeals), which upheld the disallowance of Rs. 22,50,000 claimed as excise duty paid against interest income from partnership firms. The original assessment was made under section 143(3) r.w.s. 144B of the Income-tax Act, 1961, where the Assessing Officer disallowed the claim, leading to a revised total income assessment of Rs. 2,16,90,960. The CIT(A) upheld this decision, prompting the appeal to the Income-Tax Appellate Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312422 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V. K. CHATURVEDI
• Assessee Lawyers: RAJ KUMAR SINGH
• Section: 143(3)

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER & SMT. RENU JAUHRI, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 919/MUM/2025 (निर्धारण वर्ा / Assessment Year :2020-21) Pawankumar Fakirchand Gupta B-22, 28-30 Baroda Street, Carnac Bunder, Maharashtra-400009 v/s. बिधम CIT Appeal Delhi-110001 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AENPG7957B Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee by: Shri Rajkumar Singh रधजस्व की ओर से /Revenue by: Shri V. K. Chaturvedi सुिवधई की िधरीख / Date of Hearing 29.04.2025 घोर्णध की िधरीख/Date of Pronouncement 30.04.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Mumbai/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 13.12.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2020-21. 2. The assessee has raised the following grounds of appeal: P a g e | 2 ITA No. 919/Mum/2025 A.Y. 2020-21 Pawankmar Fakirchand Gupta “1.1 We have been today newly appointed by the abovenamed assessee appellant to represent the above mentioned Income Tax Appeal filed by him for the above assessment year and as to prepare and compile the paper-book to be filed in the above appeal on receipt of relevant folders & files from his erstwhile tax representative we need time of at least two weeks therefore, in the above circumstance earnestly request your honours to kindly adjourn the hearing fixed in the matter on 19/03/2025 and may re-fix the same after 15 days on any day convenient to the hon'ble Bench, except on 24th, 25th & 26nd March, 2025 and 16th & 17 April, 2025 on which dates the undersign has to attend the hearings already fixed before different Benches of Hon'ble ITAT, Mumbai in the month of March & April, 2025. 1.2 Letter of authority in original executed by assessee appellant in our favour on stamp paper of Rs.500/- to represent the matter is enclosed herewith.” 3. The assessee filed its return of income declaring Rs. 1,94,40,450. Subsequently, the case was selected for scrutiny, and a notice under section 143(2) of the Act was issued on 29.06.2021. During the assessment proceedings, the Assessing Officer (AO) noted that the assessee had claimed Rs. 22,50,000/- as excise duty paid against interest income from partnership firms. The AO disallowed this claim of Rs. 22,50,000/-, holding it to be not an allowable expenditure. Accordingly, the assessment order was passed u/s 143(3) r.w.s. 144B of the Act, determining the total income at Rs. 2,16,90,960/-. 4. Aggrieved with the order of Ld. CIT(A), the assessee preferred an appeal before Ld. CIT(A), who upheld the addition after noting that the assessee had failed to substantiate his claim. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal. 5. We have heard the rival submissions and perused the material available before us. In the interest of justice, we deem it appropriate to restore the matter P a g e | 3 ITA No. 919/Mum/2025 A.Y. 2020-21 Pawankmar Fakirchand Gupta to Ld. CIT(A) for a fresh decision on merits after giving due opportunity to the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 30.04.2025. Sd/- Sd/- NARENDER KUMAR CHOUDHRY RENU JAUHRI (न्यधनयक सदस्य/JUDICIAL MEMBER) (लेखधकधर सदस्य/ACCOUNTANT MEMBER) Place: म ुंबई/Mumbai दिन ुंक /Date 30.04.2025 अननक ेत स ुंह र जपूत/ स्टेनो आदेश की प्रनतनलनि अग्रेनित/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. सत्यानित प्रनत //True Copy// आदेशािुसार/ BY ORDER, सहायक िंजीकार (Asstt. Registrar) आयकर अिीलीय अनर्करण/ ITAT, Bench, Mumbai. "