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Income Tax Appellate Tribunal, PANAJI BENCH :: PANAJI
(A.Y. 2012-13) New Era Shipping Pvt. Ltd., vs ITO Ward-2(3), Flat No.2, Dr. Mukund Bldg., Panaji. 1st Floor, F.L. Gomes Road, Mormugao, South Goa, Goa. PAN: AABCN 7724 Q Appellant Respondent Assessee by : Shri D.E. Robinson, Adv. Revenue by : Shri N. Shrikanth, DR Date of hearing : 17/08/2023 Date of pronouncement : 21/08/2023 O R D E R
Per PARTHA SARATHI CHAUDHURY, JM:
This appeal preferred by the assessee emanates from the order of National Faceless Appeal Centre [NFAC], Delhi, dated 19.08.2021 for A.Y. 2012-13 as per the following grounds of appeal:- “The ld.CIT(A) erred in restricting deduction of outstanding expenses consisting of salary to staff for the month of March, 2012 duly paid in April, 2012 (Rs. 2,86,868/-)”
2. The solitary grievance as assailed by the assessee in the appeal memo is regarding the addition made by the Assessing Officer (AO) of Rs.36,77,798/-. The AO had disallowed the entire outstanding expenses on the ground that assessee did not furnish any details. The assessee had submitted that all these expenses related to March, 2012
New Era Shipping Pvt. Ltd. and the said expenses have been duly paid in the following year. The AO had disallowed 100% of the outstanding expenses on the ground that details were not furnished during the assessment proceedings. The NFAC in its order observed categorically that nothing further brought on record and there is also lapse incompliance on the part of the assessee. Accordingly, NFAC had restricted the said disallowance to 25% of the outstanding expenses. Therefore, the addition was confirmed to the extent of Rs. 9,19,450/- and that NFAC’s stage, the assessee got relief of Rs. 27,62,348/- where the issue was partly allowed in favour of the assessee.
At the time of hearing, it was submitted by the ld.AR that they will file appropriate details/evidences for justification to the fact that all these outstanding expenses pertains to March, 2012 and that these expenses have been duly paid in the following year. Ld.AR prayed for one final opportunity to substantiate their arguments before the NFAC. Ld.DR did not raise any objection, if the matter is remanded to the file of NFAC.
Having heard the parties and considering the facts and circumstances involved in this case, in the interest of justice, we are inclined to provide one final opportunity to the assessee, so that they are able to represent their case on merits on this issue by filing the requisite details/evidences as submitted by the ld.AR and accordingly, NFAC shall re-adjudicate as per law. In view thereof, we set aside the New Era Shipping Pvt. Ltd. order of the NFAC on the said issue and the matter is remanded back to the file of NFAC for re-adjudication as per law, and at the same time, the assessee is directed to file the relevant details before the NFAC to represent the case substantially on merits.
In the result, appeal of the assessee stands allowed for statistical purposes.
Order pronounced in open Court on 21st August, 2023.