Case Number: ITA 3017/DEL/2022
Appellant: Denso Ten Minda India Pvt. Ltd., New Delhi
Respondent: ACIT, Circle 7(1), New Delhi
Assessment Year: 2018-19
Case Filed On: 2022-12-26
Order Type: Final Tribunal Order
Date of Order: 2023-05-22
Pronounced On: 2023-05-22
In the case of Denso Ten Minda India Pvt. Ltd. vs. ACIT, Circle 7(1), New Delhi, the appellant, Denso Ten Minda India Pvt. Ltd., challenged the addition under Section 80JJAA and the adjustment of book profits under Section 115JB for the assessment year 2018-19. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘S.M.C.’ on 28th February 2023, with the final order pronounced on 22nd May 2023.
The appeal arose from the order passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC) on 10th October 2022. The appellant, represented by Shri R. K. Kapoor, F.C.A., argued that the addition of Rs.15,39,930 under Section 80JJAA was incorrect as the gross total income was NIL and no such deduction was claimed in the return of income. Additionally, the appellant contended that the adjustment of Rs.2,95,30,361 under Section 143(1) to the book profits under Section 115JB was done without issuing a show cause notice.
The appellant’s counsel argued that in the return of income filed, no claim under Chapter VIA was made because the return was filed at NIL after setting off the brought forward losses. The appellant referred to the paper book pages where the gross total income and deductions under Chapter VIA were shown as NIL. The appellant also contended that the CIT(Appeals) upheld the disallowance for the incorrect reason of delayed return filing, despite the due date being 30th November 2018 due to the requirement to file a report under Section 92E for international transactions.
The department’s representative, Shri Om Parkash, Sr. D.R., suggested that the issue be restored to the file of the Assessing Officer (AO) for verification of the appellant’s claims.
The ITAT bench, comprising Shri Challa Nagendra Prasad (Judicial Member), decided to restore the issue to the AO for verification. The tribunal directed the AO to examine whether the appellant had indeed not claimed any deduction under Section 80JJAA and to decide the issue in accordance with the law after providing an adequate opportunity of being heard.
Regarding the adjustment to the book profits under Section 115JB, the appellant’s counsel explained that the adjustment represented the provision for current tax, which was erroneously added without discussion in the assessment order. The tribunal decided to restore this issue to the AO as well, instructing the AO to examine the appellant’s contentions and adjudicate afresh.
The tribunal’s order stated: ‘In the interest of justice, we remit the issue to the file of the AO. The AO will consider the issue afresh after providing the appellant an opportunity of being heard.’
The appeal was allowed for statistical purposes, meaning the matter was sent back to the AO for reevaluation.
The ITAT’s decision underscores the importance of accurate reporting and verification in tax assessments. It highlights the necessity for thorough examination of claims and adjustments, ensuring that taxpayers are given a fair opportunity to present their case and correct any errors in their filings.
Order Pronounced: In the open court on 22nd May 2023.
Bench: Shri Challa Nagendra Prasad, Judicial Member
Copy forwarded to:
Date of Hearing: 28th February 2023
Date of Order: 22nd May 2023
The appellant, Denso Ten Minda India Pvt. Ltd., filed an application on 26th December 2022 against the order dated 10th October 2022 by the CIT (Appeals), NFAC, challenging the additions and adjustments made by the AO for the assessment year 2018-19.
The tribunal considered the appellant’s arguments and decided to remit the issues back to the AO for verification and fresh adjudication, ensuring that the appellant is given an adequate opportunity to present their case.
The tribunal’s decision emphasizes the need for due process and fairness in tax assessments, allowing taxpayers to correct errors and provide necessary documentation to substantiate their claims.
Overall, the ITAT’s order serves as a reminder of the importance of accurate and fair assessment procedures in tax matters, ensuring that all parties are given a fair chance to present their case and that decisions are made based on thorough verification and consideration of all relevant facts.
Denso Ten Minda India Pvt. Ltd. vs. ACIT, Circle 7(1), Appeal under Section 80JJAA for AY 2018-19
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