HERO FINCORP LIMITED,NEW DELHI vs. ACIT, CIRCLE 11(1), DELHI, C.R. BUILDING

ITA 2542/DEL/2024Status: DisposedITAT Delhi16 January 2026AY 2017-1865 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the First Appellate Authority (FAA) erred in not adjudicating the issue of Section 56(2)(viib) addition, especially after the Assessing Officer's rectification order. The FAA's dismissal of the appeal as 'not adjudicated' was deemed inappropriate.

What were the facts?

The assessee, engaged in hire purchase and finance, appealed against the disallowance of provision for collection charges and depreciation on a car. The primary dispute involved a large addition under Section 56(2)(viib) related to share issuance to non-residents, which the Assessing Officer later rectified.

What were the issues?

Whether the FAA properly adjudicated the appeal after a rectification order by the AO, and whether the disallowance of provision for collection charges and depreciation were justified.

Which sections of the Income-tax Act were involved?

Section 56(2)(viib),Section 143(3),Section 154,Section 250(6),Section 251(1)

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

Before: SHRI MAHAVIR SINGH, VICE PRESDIENT, SHRI SATBEER SINGH GODARA & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Rohit Jain, Adv, Shri Deepesh Jain, Adv, Shri Himanshu Aggarwal Adv
For Respondent: Ms. Pooja Swaroop, CIT(DR)
Hearing: 14.01.2026

PER BRAJESH KUMAR SINGH, AM, The assessee is engaged in the business of ‘Hire Purchase leasing and finance'. This appeal is filed by the assessee against the order of National Faceless Appeal Center (NFAC)/(First Appellate Authority hereinafter referred as “FAA”), Delhi dated 27.03.2024 arising out of assessment order u/s 143(3) of the Act dated 29.12.2019for the Assessment year 2017-18. 2. The assessee has raised following grounds of appeal: “Disallowance o

The order continues below.

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