ITAT has allowed M/s Specific Engineering Corporation appeal for statistical purose.

Last updated: 22 January 2021

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The Income Tax Appellate Tribunal (ITAT) Mumbai has allowed an appeal by M/s. Specific Engineering Corporation for the assessment year 2009-10. The case involved the deduction of excise duty from sales, which the Assessing Officer had disallowed. The ITAT's decision overturns the previous order that added back the excise duty amount to the assessee's total income.

Court :
ITAT Mumbai

Brief :
This appeal by the assessee directed against order of learnedCommissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 28.2.2019 and pertains to assessment year 2009-10.

Citation :
I.T.A. No. 3494/Mum/2019

THE INCOME TAX APPELLATE TRIBUNAL
“SMC” Bench, Mumbai
Shri Shamim Yahya (AM) & Shri Ramlal Negi (JM)

I.T.A. No. 3494/Mum/2019 (Assessment Year 2009-10)

M/s. Specific Engineering
Corporation
Plot No. R 494, TTC
Industrial Area, MIDC,
Navi Mumbai-400701.
PAN : AAKCS7144L
(Appellant)

Vs.

ITO-15(3)(4)
Room No. 15B
Ground Floor
Aayakar Bhavan
M.K. Road
Mumbai-400 020.
(Respondent)

Assessee by Shri Vaibhav Banjan
Department by Shri Jeetendra Kumar

Date of Hearing 19.10.2020
Date of Pronouncement 01.01.2021

O R D E R

Per Shamim Yahya (AM) :-

This appeal by the assessee directed against order of learnedCommissioner of Income Tax (Appeals) [in short learned CIT(A)] dated 28.2.2019 and pertains to assessment year 2009-10.

2. The grounds of appeal read as under :-

“1. Excise duty deducted from sales Rs. 19,97,702. Total tax effect Rs. 6,17,290/-

2. Right to add alter the grounds of appeal.”

3. Brief facts of the case are as under :-

The assessee is a company. The return of income for the year underappeal was e-filed on 30. 09.2009 declaring Nil income. Assessment u/s.143(3) r.w.s.147 was completed by the Ld. AO on 29.12.2017 determining the total income of Rs.21,61 045/-. In this case, the Ld Pr. CIT-15, Mumbai cancelled the assessment order passed u/s 143(3) of the I.T. Act on28.03,2015 and passed the order u/s.263 of the Act on 30.03.2017. Ld. Pr.CIT-15, Mumbai has observed that from the Schedule M of the Profit and lossaccount the sales income of Rs.2,27,74,891/-, an amount, of Rs.19,97,702/-was deducted on account of excise duty The Ld. Pr. CIT-15. Mumbai seen thatthe sales of the assessee are inclusive of excise duty, deducting the sales for arriving at the sales amount was not in order. Pursuant to this order, the Assessing Officer reopened the assessment and issued notice u/s.143(2) & u/s. 142(1) r.w.s.263 of the I.T Act. During the assessment proceedings theassessee was issued show-cause notice to explain the deduction of excise dutyclaimed from the sales. The submissions of the assessee were considered but not accepted by the Assessing Officer. Therefore, the excise duty of Rs. 19,97,702/- was added back to the total income of the assessee.

To know more in details find the attachment file

FAQ :

The main issue was the deduction of excise duty amounting to Rs. 19,97,702/- from the sales income, which the Assessing Officer had added back to the assessee's total income.

This ruling pertains to the assessment year 2009-10.

The assessee had e-filed a return of income declaring Nil income for the assessment year 2009-10.

The Assessing Officer, acting on observations from the Principal CIT, believed that the sales were inclusive of excise duty and therefore, deducting it to arrive at the sales amount was not in order.

The ITAT Mumbai allowed the appeal filed by M/s. Specific Engineering Corporation, meaning the deduction of excise duty was permitted.