OCEAN DIVING CENTRE LIMITED,MUMBAI vs. ASST. COMM. OF INCOME TAX CENTRAL CIRCLE 3(1), MUMBAI

ITA 6742/MUM/2024Status: DisposedITAT Mumbai05 February 2026AY 2021-22Bench: SHRI PAWAN SINGH, HON’BLE (Judicial Member), SHRI OMKARESHWAR CHIDARA, HON’BLE (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal decided to remit the issue of corporate guarantee to the DRP for adjudication due to pending rectification petitions. The charging of interest on a loan to an Associated Enterprise was upheld, citing the loss of opportunity to earn interest and established legal principles. The issue of disputed customs duty was remitted to the AO/TPO for verification of the purpose of payment. The disallowance of written-off amounts as bad debt was also remitted to the TPO for fresh adjudication.

What were the facts?

The appellant, Ocean Diving Centre Limited, filed an appeal against the ACIT's order concerning the Assessment Year 2021-22. The appeal raised four primary issues: adjustment for Corporate Guarantee, adjustment for interest on a loan, payment of disputed customs duty, and disallowance of sundry balances written off.

What were the issues?

The appeal involved disputes over corporate guarantee commission, interest on a loan to an AE, deductibility of disputed customs duty, and allowability of written-off amounts as bad debts.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 43B,Section 10B

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘J’ BENCH, MUMBAI

For Appellant: Shri Aditya Rai, Sr.DR

PER OMKARESHWAR CHIDARA, AM: This appeal is filed by the appellant against the order of the ACIT, Central Circle-3(1) in DIN & Order No.ITBA/AST/S/143(3)/2024- 25/1069766751(1) dated 18.10.2024 passed u/s 143(3) r.w.s.144C(13) of the Income Tax Act, 1961 (“the Act”) for the A.Y.2021-22. 2 Ocean Diving Centre Limited

2.

The appellant company filed an appeal before ITAT on the following 4 issues :

a) DRP erred in upholding the adjustment of 0.5% on account

of Corporate Guarantee

b) DRP e

The order continues below.

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