THE COCHIN MALABAR ESTATES AND INDUSTRIES LTD,COIMBATORE V. ACIT, CIRCLE-1 (1), KOCHI, KOCHI

ITA 204/COCH/2021

AI Insights

The case involves The Cochin Malabar Estates and Industries Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2009-2010. The appellant, engaged in the business of cultivation and manufacture of tea and natural rubber, filed a return declaring a total loss, which was partially adjusted by the AO, leading to a disputed tax liability. The main contention was the taxability of the sale proceeds from rubber trees, which the AO had included in the taxable income, and various disallowances made on expenses. The CIT(A) deleted some additions but confirmed others, leading to the current appeal. The Tribunal admitted additional evidences from the appellant and remanded the case for re-assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23350 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: C.P. SHARMA
• Keywords: Opportunity of being heard; Additional evidence

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA No. 204/Coch/2021 Assessment Year: 2009-2010 The Cochin Malabar Estates and Industries Ltd. .......... Appellant \"Cowcoody Chambers\", 234-A, Race Course Road, Coimbatore 641018 [PAN: AABCT0025C] vs. Asst. Commissioner of Income Tax .......... Respondent Circle - 4(2), Kochi Appellant by: Shri C.P. Sharma, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 19.02.2025 Date of Pronouncement: 18.03.2025 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 16.09.2021 for Assessment Year (AY) 2009-2010. 2. Brief facts of the case are that the appellant is a company engaged in the business of cultivation and manufacture of Tea and Natural Rubber. The return of income for AY 2009-10 was filed on 23.09.2009 declaring total loss of Rs. 1,25,71,978/-. Against the said 2 ITA No. 204/Coch/2021 The Cochin Malabar Estates and Industries Ltd. return of income, the assessment was completed by the ACIT, Circle-4(2), Kochi (hereinafter called \"the AO\") vide order dated 27.12.2011 passed u/s. 14393) of the the Income Tax Act, 1961 (the Act) at a loss of Rs. 37,75,148/-. While doing so, the AO brought to tax, 35% of the sale proceeds of rubber trees of Rs. 1,50,73,066/- rejecting the contention of the appellant that sale of rubber trees cannot be taxed. The AO also made disallowance of provisions of adhoc expenses of Rs. 24,71,265/-. The AO made another disallowance of Rs. 35% of provisions made in respect of rubber estate of Rs. 1,87,259/-. The AO also disallowed the expenses claimed in respect of defunct rubber wood division of Rs. 8,62,.733/-. 3. Being aggrieved, an appeal was filed before the CIT(A) challenging the disallowance, who vide the impugned order deleted the addition made on account of sale of rubber trees of Rs. 52,75,573/- and confirmed the balance additions for failure of the appellant to substantiate the same. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. During the course of hearing the appellant made application for admission of additional evidences in the form of following documents: - 3 ITA No. 204/Coch/2021 The Cochin Malabar Estates and Industries Ltd. i) True copy of the Resolution passed by the Board Directors at its Meeting held on 22.04.2009. ii) Copy of confirmation of account submitted by M/s. Credwin Holdings India Pvt. Ltd. with the Appellant. iii) Form 16A submitted by the appellant. iv) Copy of confirmation of account by M/s. Win Power Vinimay Pvt. Ltd. in the books of the Appellant. v) Form 16A submitted by the Appellant. vi) Copy of the confirmation of account submitted by M/s. Phosphate Enterprises & Investments Ltd., confirming its transaction with the Appellant during the relevant previous year. vii) Form 16A issued by the Appellant. viii) Copy of Directors’ Report, Compliance Certified issued by the Company Secretary ix) Details of expenses included in Para-6(3) page-3 of the Paper Book already submitted. 6. It is submitted that the above documents are relevant to decide the admissibility or otherwise of the claims made in the appeal and the same could not be filed earlier for the reasons beyond the control of the appellant. 7. On the other hand, the learned Sr. DR had no serious objection to admit the additional evidences and send back the matter to the file of the AO for fresh adjudication in accordance with law. 4 ITA No. 204/Coch/2021 The Cochin Malabar Estates and Industries Ltd. 8. Having heard the rival submissions we are satisfied with the reasons stated in the application for admission of additional evidences and, therefore, admit the same and remand the matter back to the file of the AO for fresh adjudication in accordance with law after affording reasonable opportunity of being heard to the appellant. We make it clear that all other contentions raised by the appellant are kept open before the AO. 9. In the result, the appeal stands partly allowed. Order pronounced in the open court on 18th March, 2025. Sd/- Sd/- (KESHAV DUBEY) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 18th March, 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 By Order Assistant Registrar ITAT, Cochin "