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Facts
The assessee, Mahanagar Telephone Nigam Limited, appealed against an order related to AY 2009-10. The issue concerned the surrender of facility advance rental recovered, which was to be adjusted against pending connections, and whether outstanding customer deposits could be treated as income.
Held
The Tribunal restored the issue to the CIT(A) to provide the assessee with an opportunity to submit reconciliation details. Considering the benefit granted to the assessee for AY 2008-09, the CIT(A) was directed to decide the appeal afresh.
Key Issues
Whether outstanding customer deposits can be treated as income and whether proper opportunity for reconciliation was provided to the assessee.
Sections Cited
143(3), 254
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘G’: NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL, ACCOUNTNAT MEMBER
Year: 2009-10] Mahanagar Telephone Nigam ACIT, Limited, 5th Floor, Mahanagar Circle-1, LTU, Doorsanchar Sadan, 9, CGO Vs New Delhi Complex, Lodhi Road, New Delhi-110003 PAN-AAACM0828R Appellant Respondent Assessee by Shri Ved Jain, Advocate and Shri Ayush Garg, CA Revenue by Shri Manish Gupta, Sr. DR Date of Hearing 18.09.2025 Date of Pronouncement 30.10.2025 ORDER
PER ANUBHAV SHARMA, JM,
This appeal has been preferred by the assessee against order dated 20.01.2025 of the learned Addl./Joint Commissioner of Income Tax (Appeals)- 2, Mumbai, in Appeal No.CIT(A), Delhi-22/10271/2018-19, arising out of order dated 31.12.2018 passed u/s 143(3) r.w.s. 254 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ACIT, Circle-1, New Delhi, pertaining to Assessment Year 2009-10.
On hearing both the sides, we find that the issue was restored to the files of the ld.CIT(A) to give proper opportunity to the MTNL to provide reconciliation of the disputed issue. The ld. AR has pointed out that full reconciliation was done and the auditor removed the note, however, the same was not taken into consideration by the ld. tax authorities below. It was pointed out that in AY 2008-09 the reconciliation was submitted and the same has been accepted by the ld.CIT(A) and the appeal of the assessee was allowed by subsequent order dated 26.3.2025. The issue is with regard to surrender of facility advance rental recovered which was supposed to be adjusted by the assessee against the due pending against the connections. The outstanding customer deposits cannot be income of the assessee company. Thus, the assessee is given an opportunity to submit the reconciliation before the ld.CIT(A) and taking into consideration the benefit given to assessee for AY 2008-09, the appeal shall be decided afresh. The appeal is allowed for statistical purposes. The ld. CIT(A) shall pass a fresh order in accordance with the law.