Loading judgment…
Facts
The assessee challenged the CIT(A)'s order for A.Y. 2021-22, which did not allow the consequential deduction of amortized stamp duty and registration charges. This disallowance stemmed from A.Y. 2015-16, and the appeal for that year was still pending, leading the CIT(A) to conclude that the issue had not attained finality.
Held
The Tribunal set aside the CIT(A)'s order on this specific issue and remitted the matter back to the Assessing Officer for a de novo consideration. The assessee is to be given an adequate opportunity to substantiate their claim, and the appeal was allowed for statistical purposes.
Key Issues
The key legal issue is whether the assessee is entitled to a consequential deduction of amortized stamp duty and registration charges when the original disallowance for an earlier assessment year is still under appeal and has not reached finality.
Sections Cited
Section 143(1), Section 250, Section 154, Section 36(1)(ii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALIDr.F.L.Gomes Road,
सुनवाई की तारीख/Date of Hearing 21.01.2026 घोषणा की तारीख/Date of 12.02.2026 Pronouncement ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of ADDL/JCIT(A)-2 Coimbatore passed u/sec143(1) and U/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the order of the CIT(A) not allowing consequential deduction of amortised amount of stamp duty and registration charges.
2. The brief facts of the case are that, the assessee company has filed the return of income for A.Y.2021-22 on 11.03.2022 disclosing a total income of V.M.Salgaocar and brother private Limited. Rs.1,27,81,32,878/- under the normal provisions of the Act and Rs.1,88,65,06,407/- under the MAT. Subsequently the return of income was processed u/sec 143(1) of the Act with the disallowances and determined the total income of Rs.1,36,33,27,360/-vide order dated 13.11.2022.The assessee has filed the rectification petition u/sec154 of the Act against the order u/sec143(1) of the Act and the petition was disposed off rectifying the mistakes but sustained certain disallowances and the total income was determined at Rs.1,27,84,68,190/- vide order dated 15.03.2022. Subsequently the assessee has filed the appeal with the CIT(A) against the order u/sec143(1) of the Act on the adjustments not rectified/ sustained.
In the Appellate proceedings, the CIT(A) has considered the grounds of appeal, statement of facts, submissions and findings of the AO and has granted relief in the grounds of appeal on disallowance of payment of bonus u/sec36(1)(ii) of the Act and provision of LTA written back but has not allowed consequential deduction of amortised amount of stamp duty and registration charges pursuance to disallowance made in A.Y.2015-16.Since the assessee had filed the appeal on that disputed issue of such disallowance with the appellate authority/CIT(A) for A.Y.2015-16 and the dispute has not attained finality and hence CIT(A) observed that the consequential effect cannot be decided and partly allowed the appeal.
V.M.Salgaocar and brother private Limited. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in overlooking the facts and submissions filed in the proceedings and the assessee claim of deduction of amortised amount of stamp duty and registration charges in pursuance to disallowance made in A.Y.2015-16 was not granted by the A.O. further the CIT(A) has not allowed the claim as the assessee has filed the appeal against such disallowance with appellate authority/CIT(A) and has not attained finality. The Ld.AR mentioned that deduction of amortised amount of stamp duty and registration charges was allowed to assessee in the A.Y.2016-17 & 2017-18 and from A.Y.2018-19 to A.Y.2022-2023 (except this A.Y.2021-22) are pending for rectification before A.O/appeal before the CIT(A). The Ld.AR has substantiated the submissions with facts and financial statements and prayed for allowing the appeal. Per Contra, the Ld.DR supported the order of the CIT(A) and status reports of the assessing officer and CIT(A).
We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the facts that Since the assessee had filed the appeal on that disputed issue of stamp duty and registration charges pursuance to disallowance made in V.M.Salgaocar and brother private Limited. A.Y.2015-16 with the appellate authority/CIT(A) and the dispute has not attained finality and hence consequential effect cannot be decided. The Ld.AR emphasized that the revenue has granted deduction of amortised amount of stamp duty and registration charges in the A.Y.2016-17 & 2017-18 and referred to the Annexure C of the Submissions. The Ld.DR has submitted report of the assessing officer on the claim from A.Y.2016-17 to A.Y.2018-19 and the status of appeals pending before the CIT(A). Further the revenue has filed Order Giving effect (OGE) to the CIT(A) order for this Impugned Assessment Year 2021-22 dated 1.07.2025, When a question was raised to the revenue, why the appeal for A.Y.2015-16 is still pending, the Ld.DR has filed the status report of CIT(A) proceedings were the last hearing notice was issued on 2.05.2025 and the assessee has made the compliance. The Ld.AR submitted that the assessee has filed the written submissions and details before the CIT(A) in the appeal proceedings for A.Y.2015-16 and same is pending. Hence, we considering the facts, circumstances, submissions and principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case before the revenue authorities. Accordingly, we set aside the order of the CIT(A) on this disputed issue and remit the issue for limited purpose to the file of the Assessing Officer denova on the claim of consequential deduction and the assesse should be provided adequate opportunity of hearing and shall V.M.Salgaocar and brother private Limited. cooperate in submitting the information. And, we allow the grounds of appeal
of the assesse for statistical purpose.
6. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 12.02.2026.