SOORYA PRABHA HOTELS PVT LTD,TRIVANDRUM V. DCIT CIRCLE 1(1), TRIVANDRUM

ITA 382/COCH/2023

AI Insights

Soorya Prabha Hotels Pvt. Ltd., engaged in hospitality services, filed an appeal against the order of the National Faceless Appeal Centre (CIT(A)) which was dated 21.12.2021 for the Assessment Year 2018-19. The primary contention in the appeal was the restriction of deduction under section 80JJAA of the Income Tax Act, 1961, and the disallowance of belated remittance of employees' ESI contributions. The CIT(A) had partly allowed the appeal by remanding the issue of the deduction back to the AO for a detailed examination but upheld the disallowance of the belated ESI contributions. The Tribunal found no merit in the appeal, agreeing with the CIT(A)'s decision to remand the issue of the deduction and uphold the disallowance of the ESI contributions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474730 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Set aside
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 382/Coch/2023 Assessment Year: 2018-19 Soorya Prabha Hotels Pvt. Ltd. .......... Appellant TC-4/248(2), GNRA-A-18, Gokul Road Kowdiar, Thiruvananthapuram 695003 [PAN: AAHCS2439M] vs. DCIT, Circle – 1(1) .......... Respondent Aayakar Bhavan, Kowdiar Thiruvananthapuram Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 09.01.2025 Date of Pronouncement: 11.02.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 21.12.2021 for Assessment Year (AY) 2018-19. 2. Brief facts of the case are that the appellant is a company engaged in the business of hospitality services. The return of income for AY 2018-19 was filed on 29.09.2018 declaring total income of Rs. 7,31,56,540/-. Against the said return of income, the assessment 2 ITA No. 382/Coch/2023 Soorya Prabha Hotels Pvt. Ltd. was completed by the DCIT, Circle-1(1), Thiruvananthapuram (hereinafter called \"the AO\") vide order dated 03.02.2021 passed u/s. 143(3) read with sections 143(3A) & 143(3B) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 7,32,76,287/- after making addition of Rs. 1,19,747/- by disallowing belated remittance of employees’ ESI contribution and also donation of Rs. 7,000/-. 3. Against the said assessment order appeal was filed before the CIT(A), contending that the AO, without considering the submissions of the appellant restricted the deduction u/s. 80JJAA of to Rs. 65,25,799/- and also challenged the disallowance of belated contribution of ESI amount. The CIT(A), after due consideration of the submissions made during the course of proceedings before the NFAC, directed the AO to examine correctness of the claim while upholding the disallowance of belated payment of ESI contribution. Thus, the learned CIT(A) partly allowed the appeal filed by the assessee. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the appeal was called nobody appeared on behalf of the assessee, despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR. 6. The only grievance of the assessee in the present appeal is restriction of deduction u/s. 80JJAA of the Act as claimed by the 3 ITA No. 382/Coch/2023 Soorya Prabha Hotels Pvt. Ltd. appellant. However, during the course of proceedings before the learned CIT(A) the appellant made a claim for deduction of higher amount. On due consideration of the submission made on behalf of the appellant, the CIT(A) had set aside the issue to the file of the AO for examining the claim and decide the same. We are of the considered opinion that no prejudice is caused to the appellant by the order of remand made by the learned CIT(A), therefore, we do not find any merit in the appeal filed by the assessee. 7. In the result, appeal filed by the assessee is dismissed. Order pronounced in the open court on 11th February, 2025. (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 11th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "