EMCO GOA PRIVATE LIMITED,MARGAO vs. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU

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ITA 102/PAN/2024Status: DisposedITAT Panaji27 March 2025AY 2019-20Bench: SHIR PAVAN KUMAR GADALE (Judicial Member), SHRI GD PADMAHSHALI (Accountant Member)6 pages

AI SummaryRemanded

Facts

The assessee, Emco Goa Pvt Ltd, engaged in mining and related activities, filed its return for AY 2019-20 under Section 115JB. The assessment processed under Section 143(1) treated profit from debenture redemption as "income from other sources," leading to an addition, whereas the assessee had declared it as "short term capital gains." The CIT(A) granted partial relief, prompting the assessee to appeal further to the Tribunal.

Held

The Tribunal observed that the income in question was treated differently by the AO and the assessee, and emphasized the fundamental principle against double taxation. To ensure justice and proper verification of facts, the Tribunal restored the issue of taxability of profit on debenture redemption back to the Assessing Officer. The AO is directed to re-examine the claim with supporting evidence and provide the assessee a fair hearing.

Key Issues

The key legal issue is the correct head of income for profit on redemption of debentures – whether it is "income from other sources" as assessed, or "short term capital gains" as claimed by the assessee, and the prevention of double taxation.

Sections Cited

143(1), 250, 115JB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PANAJI BENCH,

Before: SHIR PAVAN KUMAR GADALE & SHRI GD PADMAHSHALI

Hearing: 25.03.2025Pronounced: 27.03.2025

आदेश / O R D E R The appeal is filed by the assesse against the order of the Addl /JCIT (A)-13 Mumbai passed U/sec 143(1) and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the order of the CIT(A) partially sustaining the addition made by the Assessing Officer.

1. Emco Goa Private Limited. - 2 - 2. The brief facts of the case are that, the assesse company is engaged in the business of mining, machinery, hire and loading of bags. The assesse has filed the return of income for the A.Y.2019-20 on 30- 09-2019 disclosing a total income under the provisions of section 115JB of the Act of Rs.2,50,81,166/-. Subsequently, the return of income was processed with addition of profit and restricting the carry forward of loss to Rs.55,02,853/- as against Rs.72,19,222/- claimed by the assessee and the order u/sec 143(1) of the Act was passed on 22.10.2020.

Aggrieved by the order, the assessee has filed an appeal before the CIT(A). Whereas the CIT(A) considered the grounds of appeal

, statement of facts and the submissions of the assesse but has granted the marginal relief in other grounds of appeal and partly allowed the assesse appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal Emco Goa Private Limited. - 3 -

4. At the time of hearing, the Ld. AR of the assessee submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the evidences and information filed in the proceedings. And the assessment was completed u/s 143(1) of the Act treating the profit on redemption of debentures under the income from other sources as against the income offered as short term capital gains by the assessee. Whereas the income has been correctly offered by the assessee, under the head “Short Term Capital Gains” but the A.O has erred in taxing the same amount after reducing from the business receipts and subjected to tax twice.The Ld.AR contentions are that the important facts are not verified and pleaded for one more opportunity before the lower authorities and the Ld.AR substantiated the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A).