THANJAVUR COMMERCE PRIVATE LIMITED,NAGPUR V. DCIT/ACIT CIRCLE-4, NAGPUR, NAGPUR

ITA 290/NAG/2025

AI Insights

The case involves Thanjavur Commerce Pvt. Ltd., which appealed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment years 2011-12 and 2012-13. The primary issue in both appeals was the addition made under section 2(22)(e) of the Income Tax Act, 1961, concerning deemed dividends from loans received. For the assessment year 2011-12, the addition was previously deleted in a related quantum appeal, leading to the deletion of the penalty. For the assessment year 2012-13, the Tribunal noted a similar case for the assessment year 2013-14 where the addition was deleted and remanded the matter back to the CIT(A) for re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669037 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Other Referred Cases: ITA no.182/Nag./2016, Assessment Year 2013-14
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA
• Assessee Lawyers: SACHIN V. LUTHRA
• Keywords: Deemed dividend; Rectification of order
• Section: 154; 2(22)(e)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.290/Nag./2025 (Assessment Year : 2011–12) ITA no.291/Nag./2025 (Assessment Year : 2012–13) Thanjavur Commerce Pvt. Ltd. 216, Devkripa Society, Wardhaman Nagar, Nagpur 440 018 AABCT8675J ……………. Appellant v/s Dy. Commissioner of Income Tax Circle–4, Nagpur ……………. Respondent Assessee by : Shri Sachin V. Luthra Revenue by : Shri Surjit Kumar Saha Date of Hearing – 23/06/2025 Date of Order – 23/06/2025 O R D E R PER K.M. ROY, A.M. These appeals by the assessee are against the impugned orders of even date 04/03/2025, passed by the learned Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi, for the assessment year 2011–12 and 2012–13 respectively. 2 Thanjavur Commerce Pvt. Ltd. ITA no.290–291/Nag./2025 ITA no.290/Nag./2025 Assessee’s Appeal – A.Y. – 2011–12 2. At the outset, both the parties have submitted that the Co– ordinate Bench of the Tribunal, vide order dated 15/05/2025, passed in the quantum appeal being ITA no.182/Nag./2016, has already deleted the addition of ` 31,92,098, as made by the Assessing Officer under section 2(22)(e) of the Income Tax Act, 1961 (for short \"the Act\") vide assessment order dated 28/02/2013, succeeded by rectification order dated 17/05/2013, passed under section 154 of the Act. Thus, the grounds of addition is no longer subsisting. As the foundation for levying of penalty has already been collapsed, consequently, no penalty would survive and, hence, deleted in entirety since in the absence of foundation, the structure is bound to collapse. 3. In the result, assessee’s appeal for the A.Y. 2011–12 is allowed. ITA no.291/Nag./2025 Assessee’s Appeal – A.Y. – 2012–13 4. In the instant case, the learned CIT(A), vide impugned order, has affirmed the addition of ` 9,72,899, under section 2(22)(e) of the Act on account of deemed dividend towards loan received from Shri Agrawal Coal India Pvt. Ltd. On the contrary, the learned A.R. has submitted that the appeal was filed on 06/04/2015, in physical form and the assessee has furnished the submissions / evidences also in 3 Thanjavur Commerce Pvt. Ltd. ITA no.290–291/Nag./2025 the physical form but did not upload on ITBA portal erroneously presuming that the due and sufficient compliance has already been made by submitting relevant submissions / evidences in support of his claim in physical form. The assessee has also claimed that in the assessee’s own case for the assessment year 2013–14 decided on 10/12/2024, the then learned CIT(A)–3, Nagpur, also dealt with the issue involved in the instant case and ultimately deleted the addition of ` 21,94,858, under section 2(22)(e) of the Act deleted. The learned Departmental Representative did not refute the aforesaid factual aspect and prayed that the matter may need conscious examination by the learned CIT(A). 5. Heard the parties and perused the material on record and given our thoughtful consideration to the peculiar facts and circumstances of the case. As noted above that the assessee has duly filed its submissions and evidences in physical mode but not on ITBA portal. Therefore, we are inclined to remand the entire matter back to the file of the learned CIT(A) only for limited purpose to examine the case of the assessee with regard to the similarity of decision pertaining to the assessment year 2013–14 and on finding the factual aspect as identical, then to grant the relief consequently. 4 Thanjavur Commerce Pvt. Ltd. ITA no.290–291/Nag./2025 6. In the result, appeal filed by the assessee is allowed in aforesaid terms. 7. To sum up, both the appeals filed by the assessee are allowed. Order pronounced in the open Court on 23/06/2025 Sd/- N.K. CHOUDHRY JUDICIAL MEMBER Sd/- K.M. ROY ACCOUNTANT MEMBER NAGPUR, DATED: 23/06/2025 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "