ACIT Vs Nilkanth Concast Pvt. Ltd. (ITAT Delhi)
Summary: The present appeal was filed by the Revenue against the order of the ld. CIT(A)-25, New Delhi dated 26.05.2017. The assessee, a private limited company engaged in manufacturing Sponge Iron, M.S. Billets and TMT Bars, had returned income of (-) Rs.12.67 Crores, while book profit under section 115JB was Rs.6.47 Crores.
The Revenue challenged, inter alia, deletion of an addition of Rs.4,25,79,094/- made by the Assessing Officer on account of sundry creditors and deletion of Rs.28,84,000/- disallowed as interest on borrowed funds for the period from installation of the power plant to commencement of its commercial operation.
In respect of the sundry creditors, the assessee had initially been unable to furnish confirmations in respect of Concast Exim Ltd., Fridon Kikalishvili and Aggarwal Coal Corporation Pvt. Ltd. During the first appellate proceedings, however, the assessee furnished confirmations, bills, transport receipts, reconciliation statements and other documentary evidence. The material was forwarded to the Assessing Officer for a remand report. The Tribunal noted that the Assessing Officer did not examine the details furnished before the ld. CIT(A), which had been forwarded to him on 21.01.2016, and that the remand report was submitted only on 01.02.2017 after notices were issued to the sundry creditors on 23.01.2017.
