ACIT CENTRAL CIRCLE-1 RAIPUR, RAIPUR vs. MARUTI CLEAN COAL AND POWER LIMITED, RAIPUR

ITA 558/RPR/2025Status: DisposedITAT Raipur16 February 2026AY 2016-17Bench: SHRI PARTHA SARATHI CHAUDHURY (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)25 pages
AI SummaryDismissed

What did the Tribunal hold?

The ITAT upheld the CIT(A)'s decision, ruling that the forfeiture of the security deposit was a business loss and not a capital loss. The tribunal reasoned that the security deposit was for the due performance of a business contract, not for acquiring the business itself, and thus the loss was revenue in nature. The additional evidence submitted by the assessee was deemed to have been furnished before the AO, thus not violating Rule 46A.

What were the facts?

The assessee, Maruti Clean Coal and Power Limited, had two divisions: Washery and Power. The Washery division entered into a contract with Gujarat State Electricity Corporation Limited (GSECL) for coal beneficiation and supply, for which it furnished a 'Security cum Performance Bank Guarantee'. Due to non-performance, GSECL terminated the contract and forfeited the bank guarantee of Rs. 3,44,14,282/-. The Assessing Officer treated this as capital expenditure and disallowed it.

What were the issues?

The key legal issue was whether the forfeiture of a 'Security cum Performance Bank Guarantee' due to non-performance of a business contract constitutes a revenue expenditure or a capital expenditure. Another issue was the admissibility of additional evidence before the CIT(A).

Which sections of the Income-tax Act were involved?

Section 37(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Heard together (3 matters)

CO No.19/RPR/2025
ITA No.558/RPR/2025
CO No.22/RPR/2025

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपील"य अ"धकरण "यायपीठ रायपुर म"। IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER आयकर अपील सं. /IT(SS)A No.19/RPR/2025 CO No.19/RPR/2025 "नधा"रण वष" / Assessment Year : 2014-15 The Assistant Commissioner of Income Tax, Central Circle-1, Raipur (C.G.) ........अपीलाथ" / Appellant बनाम / V/s. Maruti Clean Coal and Power Limited 8th Floor, CBD Complex, Sector-21, Atal Nagar, Naya Raipur, Raipur-492 018 PAN: AADCM4810C ……""यथ" / Respondent

आयकर अपील सं. / ITA No.558/RPR/2025 CO No.22/RPR/2025 "नधा"रण वष" / Assessment Year : 2016-17 The Assistant Commissioner of Income Tax, Central Circle-1, Raipur (C.G.) ........अपीलाथ" / Appellant

2 ACIT, Central Circle-1, Raipur Vs. Maruti Clean Coal & Power Limited IT(SS)A No.19/RPR/2025 CO Nos. 19 & 22/RPR/2025 बनाम / V/s. Maruti Clean Coal and Power Limited 8th Floor, CBD Complex, Sector-21, Atal Nagar, Naya Raipur, Raipur-492 018 PAN: AADCM4810C ……""यथ" / Respondent

Assessee by : S/shri Salil Kapoor & Shivam Yadav, Advocates Revenue by : Shri Yogesh Kumar Sharma, CIT-DR

सुनवाई क" तार"ख / Date of Hearing : 06.02.2026 घोषणा

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 37(1)

All 6,995 judgments and leading authorities on Section 37(1) →

Recent GST High Court judgments

Search GST case law →