TUNGABHADRA MINERALS PVT. LTD,PANAJI vs. JOINT COMMISSIONER OF INCOME TAX, MARGAO RANGE, MARGAO

PER PAVAN KUMAR GADALE, JM:

The appeal is filed by the assesse against the order of the CIT(A)-2 Panaji passed u/sec 144 and U/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the additions and disallowances made by the Assessing
Officer.
2. The brief facts of the case are that, the assessee company is engaged in the business of mining, processing,
Trading & Export of Iron ore. The assessee has filed the return of income for A.Y.2010-11 on 30.09.2010 disclosing

ITA. No. 140/PAN 2025
Tungabhadra Minerals Pvt Limited.

a total income of Rs.43,95,64,820/-. Subsequently the case was selected for scrutiny and notice u/sec143(2) and u/sec 142(1) of the Act are issued to furnish the details of sales, purchases, stock,books of accounts and major expenses party wise/month wise etc and no explanations were filed. Further the A.O has issued notices on various dates referred at para 3 of the order and there was no compliance. Since, no explanations/details were filed, the AO considering the information available on record has invoked the provisions of Sec.144 of the Act and made
(i)estimated disallowance of nine major expenses, which works out to Rs.48,65,81,014/-(ii) disallowance of Affore sation charges of Rs.18,16,88,432/- and(iii) addition of valuation of closing stock of Rs.8,00,00,000/- and finally assessed the total income of Rs.118,78,34,266/- and passed the order u/sec 144 of the Act dated 19.03.2013. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions and findings of the A.O but sustained the action of the assessing officer and dismissed the assessee appeal.
Aggrieved by the order of the CIT(A), the assessee has filed an appeal with the Hon’ble Tribunal.
4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the disallowances and additions made by the Assessing officer overlooking the information of the proceedings. The Ld.AR mentioned that 3

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Tungabhadra Minerals Pvt Limited.

the CIT(A) has not dealt on the details, documents and evidences filed in the appellate proceedings to substantiate the claim and also no specific details were called by the CIT(A). The Ld.AR substantiated the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A).
5. We heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the disallowances of expenses and adhoc addition of valuation of closing stock made by the Assessing Officer without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claims of the assessee. The Ld.AR highlighted on the submissions, made on various dates in the appellate proceedings placed at page 459 to 504 of the paper book. Further the assesee has a good case on merits and no additional details/clarifications were sought by the CIT(A) from the assessee. Prima-facie, the CIT(A) has dealt on the findings of the AO and has not considered the submissions/evidences of the assesse filed in the proceedings referred and has not allowed the grounds of appeal. Therefore, considering the facts, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to 4

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Tungabhadra Minerals Pvt Limited.

substantiate the case with evidences and information.
Accordingly, we set aside the order of the CIT(A) and remit the disputed issues to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. And the grounds of appeal of the assessee are allowed for statistical purposes.
6. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 17.03.2026. (GD PADMAHSHALI)
JUDICIAL MEMBER
Panaji Dated: 17/03/2026
Copy of the Order forwarded to:
1. The Appellant,
2. The Respondent
3. The CIT(A)-
4. CIT
5. DR, ITAT,
6. Guard file.

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BY ORDER,
(Asstt.