THE RAMCO CEMENTS LTD.,RAJAPALAYAM V. ACIT, CORPORATE CIRCLE, MADURAI

ITA 1203/CHNY/2025

AI Insights

The case involves The Ramco Cements Limited appealing against an order from the Assessing Officer (AO) of the National Faceless Assessment Centre, which was initially a draft assessment order treated as a final order by the Madras High Court. The primary contention in the appeal was the incorrect computation of TCS credit, deductions under section 80G, and the interest calculations under sections 234A and 234B. The Dispute Resolution Panel (DRP) had earlier removed a significant addition to the assessee's income proposed by the Transfer Pricing Officer (TPO), leading to the acceptance of the returned income. However, discrepancies remained in the computations related to TCS credit and deductions, which the assessee sought to correct through this appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780198 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Appeal Filed On: 28-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA; C.I.T
• Assessee Lawyers: S. MURALIDHAR; F.; J. PRABHAKAR; F
• Keywords: Revised return; FORM 26AS

Judgement Text

" आयकर अपील य अ धकरण, ‘सी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI \u0015ी एबी ट वक\u001a, \u000eया\u001bयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम$ BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:1203/Chny/2025 \u001bनधा%रण वष% / Assessment Year: 2021-22 The Ramco Cements Limited, Ramamandiram, Rajapalayam – 626 117. vs. ACIT, Corporate Circle, Madurai. [PAN:AABCM-8375-L] (अपीलाथ'/Appellant) (()यथ'/Respondent) अपीलाथ' क* ओर से/Appellant by : Shri. S. Muralidhar, F.C.A. & Shri. J. Prabhakar, F.C.A. ()यथ' क* ओर से/Respondent by : Ms. Anitha, Addl. C.I.T. सुनवाई क* तार ख/Date of Hearing : 11.08.2025 घोषणा क* तार ख/Date of Pronouncement : 07.10.2025 आदेश / O R D E R PER S.R.RAGHUNATHA, AM: The present appeal is filed by the assessee against the order dated 11.02.2025 passed by the Assessing Officer, National Faceless Assessment Centre (hereinafter referred to as “AO”) passed u/s.143(3) read with section 260 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). The order under challenge is passed pursuant to the Directions Printed from counselvise.com :-2-: ITA. No.:1203/Chny/2025 issued by the Dispute Resolution Panel (hereinafter referred to as “DRP”) u/s.144C of the Act, dated 28.12.2024. 2. The assessee filed its return of income for the A.Y.2021-22 on 09.03.2022 and declared a total income of Rs.703,53,44,470/- and revised return was filed on 31.03.2022 without any change in the income. Upon scrutiny, an assessment was framed vide order u/s.143(3) dated 13.11.2023, with an addition of Rs.43,42,55,948/- as proposed by the TPO vide order u/s.92CA dated 13.10.2023. Aggrieved by the assessment order, the assessee filed a writ petition before the Hon’ble Madras High Court and the Hon’ble Court disposed the said writ petition by treating the assessment order as the “draft assessment order” and provided liberty to the assessee to file objections against the same, if aggrieved. Aggrieved by the order passed in the writ petition, the assessee preferred a writ appeal before the Hon’ble Madras High Court and the writ appeal was dismissed as withdrawn, with the liberty to pursue the statutory remedy of appearing before the DRP. Thereafter, the assessee participated in the proceedings before the DRP, which by way of directions dated 28.12.2024 deleted the addition of Rs.43,42,55,948/- as proposed by the TPO vide order u/s.92CA dated 13.10.2023. Pursuant to the directions of the DRP, the order under challenge is passed by accepting the returned income. However, the assessee is aggrieved on the following grounds and preferred the present appeal. (a) TCS credit as claimed in the original return of income to the tune of Rs.2,29,90,785/- alone was considered in the computation of income, while the actual TCS credit as claimed in the revised return to the tune of Printed from counselvise.com :-3-: ITA. No.:1203/Chny/2025 Rs.2,54,41,766/- was not given, thus resulting in a shortfall of Rs.24,50,981/- (b) Same way, deduction u/s.80G of the Act had a shortfall of Rs.62,500/- (c) Computation of interest u/s.234A and u/s.234B of the Act is erroneous. According to the assessee, the correct amount is Rs.9,87,088/- and Rs.48,63,267/- respectively and the amount calculated in the computation sheet is Rs.22,41,392/- and Rs.81,95,479/- respectively. 3. The Ld.AR filed a paperbook and a brief synopsis of the case and took us through the variations as specified above, by referring to the relevant pages in the paperbook, including the form 26AS, original return of income, revised return of income and the computation sheet of the Assessing Officer. The Ld.AR also submitted that the intimation passed u/s.143(1) of the Act captures the correct claim u/s.80G of the Act. The Ld.AR prayed that the Assessing Officer may be directed to verify the above issues on shortfall of TCS credit, deduction u/s.80G of the Act and compute the correct interest u/s.234A and B of the Act and allow the appeal. 4. Per contra, the Ld.DR submitted that the Assessing Officer may verify the submissions made by the assessee, to ascertain the veracity of the claims. 5. After going through the documents filed by the Ld.AR and the submissions made before us, we are of the view that the issues specified above requires verification. Hence, we direct the jurisdictional Assessing Officer to verify the correct claim of TCS credit, correct claim of deduction u/s.80G of the Act and compute the correct interest u/s.234A of the Act and u/s.234B of the Act. The assessee is entitled to file all relevant records before the jurisdictional Assessing Officer in support of its claim. Printed from counselvise.com :-4-: ITA. No.:1203/Chny/2025 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 07th October, 2025 at Chennai. Sd/- Sd/- (एबी ट वक\u001a ) (ABY T VARKEY) \u000eया\u001bयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद य/Accountant Member चे\u000eनई/Chennai, .दनांक/Dated, the 07th October, 2025 sp आदेश क* (\u001bत0ल1प अ2े1षत/Copy to: 1. अपीलाथ'/Appellant 2. ()यथ'/Respondent 3.आयकर आयु3त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 1वभागीय (\u001bत\u001bन ध/DR 5. गाड% फाईल/GF Printed from counselvise.com "