PUDUMJEE PAPER PRODUCTS LTD,PUNE V. ACIT, NATIONAL E- ASSESSMENT CENTRE, DELHI, DELHI

ITA 336/PUN/2025

AI Insights

The case involves Pudumjee Paper Products Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2018-19. The appeal was directed against the additions made by the Assessing Officer in the assessment order under section 143(3) of the Income Tax Act, 1961, which included disallowances under section 14A and interest. The CIT(A) had previously dealt with the adjustments made in the return processed under section 143(1)(a), but the specific grounds related to the assessment order were not addressed. The Tribunal noted this oversight and restored the matter to the CIT(A) for a detailed examination of the grounds raised.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126814 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUMAR MANISH SINHA
• Assessee Lawyers: NIKHIL S. PATHAK
• Keywords: Grounds of appeal; National Faceless Appeal; Commissioner; Commissioner of Income Tax; Statistical purposes; Restored; Deleted; Department; Large deduction
• Section: 14A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.336/PUN/2025 Assessment Year : 2018-19 Pudumjee Paper Products Ltd., Thergaon, Pune 411 033 Maharashtra PAN : AAHCP9601Q Vs. Addl/Joint/Deputy/ Asst. Commissioner of Income Tax, National e-Assessment Centre, Delhi Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order dated 24.12.2024 passed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) which inturn is arising out of the Assessment Order dated 08.04.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act. 2. Assessee has raised following grounds of appeal: “On facts and in law, 1. The Learned CIT(A) erred in not deciding the ground relating to disallowance made u/s 14A of Rs. 14,97,922/- which was raised by the assessee and thereby erred in confirming the said addition. Appellant by : Shri Nikhil S. Pathak Respondent by : Shri Kumar Manish Sinha Date of hearing : 09.04.2025 Date of pronouncement : 25.04.2025 ITA No.336/PUN/2025 Pudumjee Paper Products Ltd. 2 2. The Learned CIT(A) erred in not appreciating that the disallowance made of Rs. 14,97,922/-u/s 14A was not warranted at all and the same should have been deleted. 3. The Learned CIT(A) erred in not deciding the ground relating to disallowance of interest of Rs. 1,57,89,806/- which was raised by the assessee and thereby erred in confirming the said addition. 4. The Learned CIT(A) failed to appreciate that the disallowance of interest of Rs. 1,57,89,806/-was not justified at all and the same should have been deleted. 5. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal. 3. At the outset, Ld. Counsel for the assessee submitted that the issues raised on merits needs to be restored to the file of ld.CIT(A) for necessary adjudication because in the impugned order ld.CIT(A) has dealt with the grounds of appeal raised against adjustments made in the return processed u/s.143(1)(a) of the Act whereas in the impugned proceedings appeal was filed against the additions made by the AO in the assessment framed u/s.143(3) of the Act on 08.04.2021. 4. Ld. Departmental Representative was fair enough in not raising any objection to the above contention putforth by the ld. Counsel for the assessee. 5. We have heard the rival contentions and perused the record placed before us. We notice that the assessee is a Limited Company and it furnished its return of income for A.Y. 2018-19 on 14.10.2018 declaring income of Rs.9,17,46,840/-. Return was processed u/s.143(1)(a) on 22.11.2019 determining income of Rs.9,17,85,800/- under normal provisions and book profit of Rs.27,59,29,965/- u/s.115JB of the Act. The assessee preferred appeal against the adjustments made in the return processed u/s.143(1)(a) ITA No.336/PUN/2025 Pudumjee Paper Products Ltd. 3 of the Act before ld.CIT(A). Subsequently, case of the assessee selected for complete scrutiny through CASS and the reasons for selection were (1) claim of any other amount allowable as deduction in Schedule BP, claim of large value of refund, (3) reduction in profit because of application of income and computation and feasible standards and (4) large deduction claimed u/s.35(1). The assessment proceedings were carried out after validly serving of notices and the submissions filed by the assessee were considered and the income assessed at Rs.10,90,73,258/- which was arrived after making certain more additions to the income assessed under the return processed u/s.143(1)(a) of the Act. 6. Aggrieved assessee preferred appeal against the additions made in the assessment order u/s.143(3) of the Act before ld.CIT(A) on 24.04.2021. However, while passing the order, ld.CIT(A) has mentioned the grounds of appeal raised by the assessee in the appeal filed before the CIT(A) against the Intimation order passed u/s.143(1)(a) of the Act on 22.11.2019 and in the subsequent pages of the impugned order has dealt with the issues arising out of the adjustments made in the order u/s.143(1)(a) of the Act. Under these facts and circumstances since the ld.CIT(A) has not dealt with the issues raised in the grounds of appeal filed before him in form No.35 which are emanating out of the order u/s.143(3) of the Act dated 08.04.2021, we deem it proper to restore the issue to the file of ld.CIT(A) for necessary adjudication of the grounds raised in Form No.35. Thus, Grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.336/PUN/2025 Pudumjee Paper Products Ltd. 4 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 25th day of April, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 25th April, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "