KAMRUP COKE INDUSTRIES,KOLKATA vs. A.C.I.T.,CIRCLE-37, KOLKATA

Assessment Year: 2013-2014 Kamrup Coke Industries 2. The solitary grievance of the assessee is that the ld. CIT(Appeals) has erred in dismissing the appeal of the assessee and upholding the order of ld. Assessing Officer passed under section 154 of the Income Tax Act.

Brief facts of the case are that an assessment order under section 143(3) was completed on 24.02.2016. The ld. Assessing Officer has initiated proceeding under section 154 of the Income Tax Act. The ld. Assessing Officer was of the view that in paragraph no. 3 & 3.1 of the assessment order an amount of Rs.29,52,785/- was disallowed, however, it remained to be included in the computation of income. Accordingly he took action under section 154 of the Income Tax Ac and included that amount of Rs.29,52,785/-.

The assessee has filed an appeal against the assessment order passed under section 143(3) on 24.02.2016. He thereafter challenged the order of the ld. Assessing Officer passed under section 154 read with 143(3) of 2nd June, 2016 before the ld. CIT(Appeals). The assessee had contended that the issue is highly debatable and, therefore, ld. Assessing Officer ought to have not made this addition in a proceeding under section 154 of the Income Tax Act. The ld. CIT(Appeals) dismissed the appeal of the assessee by holding that sum of Rs.29,52,785/- represents disallowance of interest expenditure and, therefore, this amount

Before us, the assessee has submitted that the assessee has challenged the original assessment order passed under section 143(3) of the Income Tax Act before ld. CIT(Appeals) and thereafter before the ITAT vide ITA No. 2593/KOL/2019. After hearing the assessee, the Tribunal has set aside the impugned order of the ld. CIT(Appeals) and restored all these issues to the ld. Assessing Officer for re-adjudication. Since the determination of income of the assessee remained to be adjudicated by the ld. Assessing Officer afresh after the order of the Tribunal dated 13.09.2022 passed in we deem it appropriate to relegate this issue also for fresh adjudication at the end of the ld. Assessing Officer. Therefore, whether disallowance of interest expenditure would qualify for grant of deduction under section 80IC is remitted back to the file of ld. Assessing Officer for re-adjudication.