2025 (9) TMI 1361

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.... by 9 days. It has moved a condonation petition explaining reasons thereof. We have heard both the parties and having regard to the reasons given in the petition, we condone the delay and admit the appeal for hearing. 3. The brief facts of the case are that the assessee company is a Special Purpose Vehicle, incorporated as per the guidelines of National Highway Authority of India ("NHAI") is a 100% subsidiary of SWE Transportation Networks Limited. The assessee filed the original return of income for the A.Y.2020-21 on 31.03.2021, declaring current year loss of Rs. 1,42,96,785/- and the said return of income has been revised on 31.05.2021 and declared current year loss of Rs. 1,42,96,785/-. During the financial year, relevant to the asse....

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....ed by the assessee and issued intimation u/s 143(1) of the Act on 20.12.2021, determining total income at Rs. 136,43,98,400/- by making adjustment towards inadmissible expenditure u/s 36(1)(viii) of the Act. The assessee filed rectification petition u/s 154 of the Act and the CPC passed order u/s 154 dated 11.01.2022 and rejected the contentions of the assessee. 4. Being aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the Ld.CIT(A), the assessee submitted that it has debited total interest expenditure of Rs. 137.82 crores in the P&L account and the entire interest expenditure has been disallowed and added back to the total income, in accordance with ICDS-IX notified u/s 145(2) of the Act. How....

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.... the Act. The learned counsel for the assessee, further taken us to the paper book filed by the assessee and explained the issue in light of financial statements for the year ending 31.03.2020 and interest expenditure debited into P&L account, disallowance of total expenditure in the statement of total income as per tax audit report in clause 13(e) in terms of ICDS-IX and also he explained the reporting requirement under clause 21(i) of the tax audit report. Further, the learned counsel for the assessee had also filed copy of rectification order passed by the JAO deleting the total additions made towards interest expenditure u/s 36(i)(iii) of the Act and submitted that the Assessing Officer has made additions once again for the same amount,....

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....54 of the Act. This fact has been brought to the notice of the Ld.CIT(A). Therefore, in our considered view, the Ld.CIT(A), having noticed the fact that the jurisdictional Assessing Officer, after verifying the facts with regard to disallowance made by the AO/CPC in the order u/s 143(1) of the Act has deleted the additions towards interest expenditure in the order u/s 154 of the Act, ought to have allowed the appeal filed by the assessee, because from the details filed by the assessee before the Ld.CIT(A), it is undisputedly clear that the AO/CPC has made disallowance towards interest expenditure u/s 36(1)(iii) of the Act on the basis of clause 21(i) of the Tax Audit Report, even though the assessee itself has disallowed the said interest e....