2022 (6) TMI 1014

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.... year 2006-07 u/s.143(3) r.w.s. 263 of the Income Tax Act, 1961 (hereinafter 'the Act') vide order dated 26.12.2011 and by the Income Tax Officer (OSD), Company Circle III(3), Chennai for the assessment year 2007-08 u/s.143(3) of the Act vide order dated 12.10.2009. ITA No.2805/CHNY/2018 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the disallowance of bank interest of Rs.1,31,60,648/- being bank interest charged and debited to assessee's CC account and addition made on account of liability to service tax taken over from ICCFL amounting to Rs.63,19,927/- u/s.43B of the Act. For this assessee has raised following Ground Nos.2 to 5 as under:- 2. The Commissioner of Incometax (Appea....

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.... confirmed the service tax liability u/s.43B of the Act. The CIT(A) noted that the amount is liable for taxation as benefit accrued by the assessee during business operations conducted and being taxes collected. Hence, he confirmed the disallowance u/s.43B of the Act and service tax liability to the extent of Rs.63,19,927/- 4. Now, before us the ld.counsel for the assessee filed copy of Tribunal order in the case of India Cements Capital Ltd., in ITA No.1932/CHNY/2018, wherein the Tribunal vide order dated 20.05.2022 has noted that in the case of India Cements Capital Ltd., the liability due to Bank of Ceylon stood transferred to SPV in assessment year 2006-07 as per Tripartite Agreement and there is no income shown in the books of accou....

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.... 01.10.2005 to 31.03.2006 as interest on transferred bank loan accrued to the assessee. 4.1 Similarly in regard to the service tax collected by India Cement Capital Ltd., to the extent of Rs.63,19,927/-, the ld.counsel stated that during the earlier years this service tax was collected by India Cement Capital Ltd., but was not paid in view of pending writ petition filed by Traders Association regarding service tax on leased transactions. It was stated that the assessee had not claimed this amount as deduction in earlier years and hence, the same was claimed in this year, the same cannot be disallowed u/s.43B of the Act. This amount was not at all collected by the assessee and hence, this amount cannot be added as its income. When a query....

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....see is that the CIT(A)'s order is ex-pare and another opportunity should have been given to the assessee to explain or prove the bad debts written off for an amount of Rs.13,14,72,102/-. For this, assessee has raised following 2 grounds:- 2. The Commissioner of Incometax (Appeals) erred in deciding the case exparte. He should have given another opportunity to the Appellant to explain the case. 3. The Commissioner of Incometax (Appeals) erred in confirming the disallowance of bad debts written off of Rs.13,14,72,102/-. 8. The ld.counsel for the assessee before us argued that the CIT(A) has decided the appeal ex-parte and confirmed the action of AO simpliciter by noting that the credit details of debts taken over as well ....