BEAS VALLEY POWER CORPORATION LIMITED,SHIMLA vs. ACIT, SHIMLA

ITA 969/CHANDI/2025Status: DisposedITAT Chandigarh05 October 2026AY 2018-192 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order passed by the Ld. CIT(A) and restored the appeal back to the file of the Ld. CIT(A) for fresh adjudication on merits. The Tribunal directed the assessee to plead and prove its case forthwith before the Ld. CIT(A). It was also noted that the earlier decisions in favor of the assessee would be considered during the fresh adjudication. The Tribunal did not decide the substantive issue of the allowability of expenses claimed under the head 'income from other sources'. The operative direction is to remand the matter for fresh consideration.

What were the facts?

The assessee, Beas Valley Power Corporation Ltd., is in appeal against an ex-parte order dated 08-04-2025 passed by the Ld. CIT(A), NFAC. This order confirmed an assessment framed by the Ld. AO under section 143(3) r.w.s 143(3A) & 143(3B) of the Act on 06.04.2021 for Assessment Year 2018-19. In the assessment, the Ld. AO denied deduction of expenses claimed under the head 'income from other sources', resulting in an assessed income of Rs. 185.50 Lacs. The Ld. CIT(A) upheld this disallowance due to the assessee's lack of compliance. The assessee is aggrieved by this decision.

What were the issues?

1. Whether the Ld. CIT(A) erred in confirming the disallowance of expenses claimed under the head 'income from other sources' without adjudicating on merits, solely on the grounds of non-compliance by the assessee? (Question of law and fact, concerning the assessment framed under section 143(3) r.w.s 143(3A) & 143(3B) and the denial of deduction of expenses). Assessee's contention: The assessee argued that a similar issue was decided in its favor by the Tribunal for Assessment Year 2009-10, implying that the merits of the deduction should have been considered. Revenue's contention: The Revenue, through the Ld. Sr. DR, stated that the assessee had not pleaded or raised such arguments before the lower authorities, suggesting that the issue of prior Tribunal decisions was not brought to their notice.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(3A),Section 143(3B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

RAJESH DAMODARLAL SHARMA (Judicial Member)

1.

This appeal by the assessee is directed against ex-parte order of the Ld. CIT(A), NFAC dated 08-04-2025 in the matter of an assessment as framed by Ld. AO u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act on 06.04.2021. In the assessment order, Ld. AO denied deduction of expenses as claimed under the head income from other sources and assessed income of Rs.185.50 Lacs. The Ld. CIT(A) confirmed the same for want o

The order continues below.

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