UNBLOCK INDIA PVT LTD,KOLKATA vs. ITO, WARD-7(2), KOLKATA

This is an appeal preferred by the assessee against the order of National Faceless Appeal Centre, Delhi dated 08.12.2021 for A.Y. 2017-18.

At the outset, it is noted that there is a delay of 15 days on the part of the assessee in filing this appeal before the Tribunal. In this regard, the assessee has filed an application seeking condonation of the said delay and keeping in view the reasons given therein, we are satisfied that there is a sufficient cause for the delay of 15 days on the part of the assessee in filing this appeal before the Tribunal and delay in filing the instant appeal is accordingly condoned.

The assessee has raised the following grounds of appeal:

The brief fact of the case is that the assessee-company furnished its return for the assessment year 2017-18 for a total income (Non Sez Income) of Rs. 71,660/- after claiming an exemption of Rs. 37,64,595/- u/s 10AA. Tax liability was computed under MAT on book profit u/s 115JB of the Act. The case of the assessee was processed u/s 143(1) of the Act and was selected for scrutiny u/s 143(3) under CASS module. During proceeding on the examination of the submission made by the assessee, the AO was noticed that in P & L A/c note 9, depreciation on fixed asset was calculated at Rs. 13,56,355/- and claimed deduction. The assessee- company in computation while taken for adjustment of Rs. 6,94,550/- was added leaving out of Rs. 6,61,805/- on stock yard, the ld. CIT(A) is confronted on this issue, the assessee-company gave an evasive and incomplete reply that “The value of stock yard is amortised a cross a period of 10 years. Note 9 of balance sheet, point no. 2 & 3”. However in note 9, the depreciation on stock yard for the year of Rs. 6,61,805/- was duly taken into consideration. Therefore, the amount of Rs. 6,61,805/- was added back to the Assessment Year: 2017-18 Unblock India Pvt. Ltd. total income of the assessee in the assessment year 2017-18 and penalty proceeding u/s 270A of the Act was initiated separately.

Aggrieved by the above order, the assessee preferred an appeal before the National Faceless Appeal Centre which was dismissed on 08.12.2021.

Now, aggrieved by the aforesaid impugned order dated 08.12.2021 passed by the National Faceless Appeal Centre, the assessee is in appeal before the Tribunal.

The assessee in this appeal raised six grounds of appeal. However, the core issue that is issue no. 2 by which the assessee challenged the confirming an addition of Rs. 6,61,805/- being the amount of amortization in respect of lease hold land which may be allowed as an expenditure for the assessment year in question.

At the time of hearing the ld. AR submitted that the assessee did not get an opportunity to submit its claim before the authority below and one more opportunity may be given to the assessee for the ends of justice and remand back the matter before the AO to examine the issue afresh

On the other hand, the ld. DR relied on the decision of the ld. CIT(A), we after hearing the rival submission of the parties and on the material available on record, we are of the view that the claim of the assessee need to be examined afresh and accordingly we remit back the matter to the file of the AO with the direction to verify the claim of the assessee and decide it in accordance of law. It is needless to mention that while deciding the issue notice may be given to the assessee to file its objection and documents at the time of hearing fixed by the Assessing Officer. The other grounds of Assessment Year: 2017-18 Unblock India Pvt. Ltd. appeal are general and consequential in nature and need not to be adjudicated.

In the result, the appeal of the assessee is allowed for statistical purpose.