DY. COMMISSIONER OF INCOME TAX, CIRCLE-5(2)(1), MUMBAI, MUMBAI vs. MERIDIAN CHEM BOND PRIVATE LIMITED, MUMBAI
IN THE INCOME TAX APPELLATE TRIBUNAL, ‘D’ BENCH
MUMBAI
BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER
&
MS. PADMAVATHY S, ACCOUNTANT MEMBER
Dy.
Commissioner of Income Tax,
Circle-5(2)(1),Mumbai
Vs. Meridian
Chem
Bond
Private Limited
903, Raheja Centre
Free
Press
Journal
Marg
Nariman Point
Mumbai – 400 021
PAN/GIR No.AAACM7299J
(Appellant)
..
(Respondent)
CO No.20/Mum/2025
(Arising out of ITA No.131/Mum/2025)
(Assessment Year :2010)
Meridian Chem Bond
Private Limited
903, Raheja Centre
Free Press Journal
Marg
Nariman Point
Mumbai – 400 021
Vs. Dy.
Commissioner of Income Tax,
Circle-5(2)(1),Mumbai
PAN/GIR No.AAACM7299J
(Appellant)
..
(Respondent)
Assessee by Shri Suchek Anchaliya
Revenue by Shri R.R. Makwana, Addl.
CIT
Date of Hearing
20/02/2025
Date of Pronouncement
24/02/2025
ITA No.131/Mum/2025 & CO No.20/Mum/2025
Meridian Chem Bond Pvt. Ltd.
2
आदेश / O R D E R
PER AMIT SHUKLA (J.M):
The aforesaid appeal has been filed by the Revenue and Cross Objection by the assessee against order dated
26/11/2024 passed by NFAC for the quantum of assessment passed u/s.143(3) r.w.s. 147 for the A.Y.2010-11. 2. In the appeal filed by the Revenue, the quantum addition challenged is of Rs.16,40,316/- which is on account of disallowance of interest paid on loan which earlier was treated as bogus loan. The tax effect on the disputed amount is only Rs.5,06,858/-. The Revenue in the grounds have stated that even though the tax effect involved is much below the prescribed limited but the case of the assessee falls under the exception clause of para 3(h) of CBDT Circular No. 5 of 2024 dated 15/03/2024. From the perusal of the facts it is stated that here the addition is on account of disallowance of interest on a loan taken in the earlier year. Moreover, earlier the addition on account of loan was made on the basis of some search conducted by the Income Tax department in Bhanwarlal Jain. Even in those years addition was not made on the basis of any information or enquiry by any external agency as stated in clause ‘h’ para 3 of CBDT Circular. Hence, it is not covered by any exceptional clause. Thus, appeal of the Revenue is dismissed on account of low tax effect being below prescribed monetary limit of Rs.60,00,000/-.
ITA No.131/Mum/2025 & CO No.20/Mum/2025
Meridian Chem Bond Pvt. Ltd.
3
3. Ld. Counsel submitted that if Revenue’s appeal is dismissed on account of low tax then, the validity of reopening as challenged in cross objection will become academic. Accordingly, Cross Objection is dismissed as infructuous.
In the result, appeal of the Revenue and cross objection filed by the assessee are dismissed.
Order pronounced on 24th February, 2025. (PADMAVATHY S) (AMIT SHUKLA)
ACCOUNTANT MEMBER
JUDICIAL MEMBER
Mumbai; Dated 24/02/2025
KARUNA, sr.ps
Copy of the Order forwarded to :
BY ORDER,
(Asstt.