TATA SPONGE IRON LTD GRATUITY FUND,BILAIPADA JODA ODISHA V. ACIT CIRCLE 1(1) BHUBANESHWAR, BHUBANESHWAR

ITA 520/CTK/2024

AI Insights

The case involves Tata Sponge Iron Ltd., which appealed against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2022-23. The primary issue was the non-acceptance of certain contributions to the Gratuity Fund, amounting to Rs.57,90,53,960/-, during the assessment proceedings. The CIT(A) accepted a part of the claim but rejected Rs.6,13,55,631/- due to lack of evidence. The Tribunal noted that the new evidences were not considered by the CIT(A) as they were produced for the first time in the appellate proceedings without a Rule 46A application. Consequently, the matter was remanded back to the Assessing Officer for further verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40717 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAROJ KUMAR DUBEY
• Assessee Lawyers: NEHA JHUNJHUNWALA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Tata Sponge Iron Ltd., Bilelpada, Joda, Keonjhar PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated 22/10364461 for the ass 2. Ms Neha Jhunjhunwala, CA appeared for the assessee and Shri Saroj Kumar Dubey, ld CIT DR appeared for the revenue. 3. The assessee has also filed stay petition being S.P.No.12/CTK/2024. It may also be mentioned here that the assessee has not shown any financial difficulties nor has shown any justifiable reasons nor material IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.520/CTK/2024 Stay Petition No.12/CTK/2024 Assessment Year : 2022-23 Tata Sponge Iron Ltd., Bilelpada, Joda, Keonjhar Vs. ACIT, Circle-1(1), Bhubaneswar No.AAATT 5339 H (Appellant) .. ( Respondent Assessee by : Ms Neha Jhunjhunwala, CA Revenue by : Shri Saroj Kumar Dubey, CIT Date of Hearing : 09/01/20 Date of Pronouncement : 09/01/20 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 11.11.2024 in Appeal No. for the assessment year 2022-23. Ms Neha Jhunjhunwala, CA appeared for the assessee and Shri Saroj Kumar Dubey, ld CIT DR appeared for the revenue. The assessee has also filed stay petition being S.P.No.12/CTK/2024. It may also be mentioned here that the assessee has not shown any financial difficulties nor has shown any justifiable reasons nor material P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER 1(1), Respondent) : Ms Neha Jhunjhunwala, CA Saroj Kumar Dubey, CIT DR 2025 025 appeal filed by the assessee against the order of the ld 11.11.2024 in Appeal No. NFAC/2021- Ms Neha Jhunjhunwala, CA appeared for the assessee and Shri Saroj The assessee has also filed stay petition being S.P.No.12/CTK/2024. It may also be mentioned here that the assessee has not shown any financial difficulties nor has shown any justifiable reasons nor material P a g e 2 | 4 required for filing of stay petition. It is also noticed that the assessee has already been granted stay by the Pr. CIT, Bhubaneswar-1 vide order dated 22.11.2024 in DIN & Letter No.ITBA/COM/F/17/2024-25/1070571181(1). In these circumstances, the stay petition filed by the assessee stands dismissed. 5. We have considered the rival submissions and perused the record of the case. 6. In regard to appeal filed by the assessee, it was submitted by ld AR that the assessee is the Gratuity Fund in respect of employees of Tata Sponge Iron Ltd. In the course of assessment proceedings, unfortunately the assessee had not provided the details in respect of contributions made towards the fund to an extent of Rs.57,90,53,960/-. On appeal, evidences were produced before the ld CIT(A) and ld CIT(A) has accepted the claim of the assessee to an extent of Rs.51,76,98,329/-. In respect of balance amount of Rs.6,13,55,631/- relating to interest portion received from Life Insurance Corporation of India (LIC) and employer’s contribution as mentioned in the balance sheet, same was not accepted on the ground that evidences had not been produced. Ld CIT(A) has also in para 5.8 of his order questioned the nature and source of the aforesaid amount of Rs.6,13,55,631/-. Ld AR drew our attention to the balance sheet and schedule there under to show the source of the amount of Rs.2,19,22,640/- and interest portion of Rs.3,84,41,162/- at pages 21 & 2 of paper book filed P a g e 3 | 4 by the assessee. Admittedly, these are evidences which have not been considered by the ld CIT(A). These evidences have been produced for the first time in the appellate proceedings. Ld CIT(A) has not admitted the same. Consequently, it would not be appropriate for the Tribunal to admit such evidences insofar as an application under Rule 46A of IT Rules has not been filed either before the ld CIT(A) nor before the Tribunal. However, it is noticed that the assessee has got evidences and the failure has been on the part of the assessee to produce such evidences before the Assessing Officer. Hence, in the interest of justice, the issues in this appeal are restored to the file of the Assessing Officer for necessary verification and re- adjudication in respect of amount of Rs.6,13,55,631/-. It must be mentioned that the Revenue has not filed any appeal against the order of the ld CIT(A) allowing relief to the assessee and consequently, that issue remains settled. 7. In the result, appeal of the assessee stands partly allowed for statistical purposes and stay petition stands dismissed. Order dictated and pronounced in the open court on 09/01/2025. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 09/01/2025 B.K.Parida, SPS (OS) P a g e 4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, Cuttack 1. The appellant: Tata Sponge Iron Ltd., Bilelpada, Joda, Keonjhar 2. The respondent: ACIT, Circle-1(1), Bhubaneswar 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Bhubaneswar-1 5. DR, ITAT, 6. Guard file. //True Copy// "