M/S SUBHASH STONE INDUSTRIES PRIVATE LIMITED,NAINITAL vs. ASSTT. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, ALLAHABAD
Facts
The assessee, Subhash Stone Industries (P) Ltd., filed its return for AY 2014-15, which led to an assessment order u/s 143(3) with disallowances. Aggrieved by the partly allowed appeal by CIT(A), the assessee filed an appeal before the Income Tax Appellate Tribunal raising two issues: disallowance of security charges and addition under Section 43B for VAT.
Held
The Tribunal noted that the assessee did not receive a reasonable opportunity to present relevant details to the CIT(A). Therefore, the two contested issues—disallowance of security charges and addition under Section 43B concerning VAT—were restored to the file of the CIT(A) for fresh adjudication, with directions to provide the assessee a proper opportunity of being heard.
Key Issues
Disallowance of security charges; Addition under Section 43B of the Act for VAT claim; Lack of reasonable opportunity for the assessee before CIT(A).
Sections Cited
Section 143(3) of the Act, Section 43B of the Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ALLAHABAD BENCH, ALLAHABAD
Before: SHRI ANADEE NATH MISSHRA & SHRI SUBHASH MALGURIA
PER SUBHASH MALGURIA:J.M.
This appeal vide I.T.A. No.109/Alld/2019 has been filed by the assessee for assessment year 2014-15 against impugned appellate order dated 21/05/2019 of Commissioner of Income Tax (Appeals) [“CIT(A)” for short].
The facts of the case, in brief, are that the assessee filed its return of income on 18/11/2024 declaring total income of Rs.37,67560/-. The
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Assessing Officer processed the return filed by the assessee and passed assessment order u/s 143(3) of the Act on 19/12/2016 and determined the total income of the assessee at Rs.50,75,580/- by making various disallowances. Being aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide order dated 21/05/2019, the assessee’s appeal was partly allowed by learned CIT(A). Being aggrieved further, the assessee has filed the present appeal in Income Tax Appellate Tribunal against the aforesaid impugned appellate order of learned CIT(A).
There are two issues raised in the grounds of appeal filed by the assessee. The first issue is regarding the disallowance of security charges amounting to Rs.1,51,568/-. The second issue is regarding the addition of Rs.3,93,259/- by way of addition under section 43B of the Act in respect of claim of VAT.
At the time of hearing, the learned A.R. for the assessee submitted that the assessee did not get reasonable opportunity to submit the relevant details/documents before the learned CIT(A). He requested that the aforesaid issues be restored back to the file of the learned CIT(A) with the direction to pass de novo order on these issues after providing reasonable opportunity to the assessee. The learned D.R. for Revenue supported the order of learned CIT(A) and relied on the same.
We have heard the rival parties and have gone through the material placed on record. In view of the submissions made by learned A.R. for the assessee, the aforesaid two issues regarding the disallowance of security charges amounting to Rs.1,51,568/- and regarding the addition of Rs.3,93,259/- by way of addition under section 43B of the Act are restored back to the file of the learned CIT(A) for fresh adjudication on these specific
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points in accordance with law after providing reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee stands partly allowed for statistical purposes.
(Order pronounced in the open court on 22/08/2025)
Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member
Dated:22/08/2025 *Singh
Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Allahabad
