SUNANDA CONSTRUCTIONS,PUNE vs. DCIT, CENTRAL CIRCLE 2(2), PUNE, PUNE

ITA 784/PUN/2025Status: DisposedITAT Pune19 August 2025AY 2013-14Bench: SHRI R. K. PANDA (Vice President), MS. ASTHA CHANDRA (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the addition made by the Assessing Officer under Section 40(a)(ia) was not in accordance with law, as the case was reopened on the basis of bogus interest expenses, but the addition was made on a different ground. The Tribunal followed the decision of the Hon'ble Bombay High Court in CIT vs. Jet Airways (I) Ltd.

What were the facts?

The assessee claimed bogus interest expenses, which were subsequently capitalized to closing stock. The Assessing Officer reopened the case based on seized documents indicating manipulation of interest expenses and initiated proceedings under Section 147. The addition was ultimately made under Section 40(a)(ia) for non-deduction of TDS.

What were the issues?

Whether an addition can be made on a ground different from the one on which the assessment was reopened. Whether the disallowance under Section 40(a)(ia) is valid when the original reason for reopening was bogus interest expenses.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 151,Section 40(a)(ia),Section 143(3)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI R. K. PANDA & MS. ASTHA CHANDRA

For Appellant: Shri Rajendra Agiwal
For Respondent: Shri Akhilesh Srivastva, Addl.CIT

PER BENCH:

The above 2 appeals filed by the assessee are directed against the common order dated 06.01.2025 of the Ld. CIT(A), Pune-12 relating to assessment years 2013-14 and 2014-15 respectively. For the sake of convenience, these were heard together and are being disposed of by this common order.

2.

Facts of the case, in brief, are that the assessee M/s. Prithvi Builders is a partnership firm engaged in the business of real estate development and sales. It filed its return of income on 31.07.2013 declaring total income of Rs.2,59,310/-. A the case of Kele Group on 03.02.2021. There are mainly two Patsansthas i.e. Cooperative Credit Societies which were con

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