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IN THE INCOME TAX APPELLATE TRIBUNAL

‘B’ BENCH : BANGALORE

BEFORE SHRI PRASHANT MAHARISHI, VICE – PRESIDENT

AND

SHRI SOUNDARARAJAN K., JUDICIAL MEMBER

ITA No. 125/Bang/2025

Assessment Year : 2017-18

M/s. Metrik InfraProjects

Pvt. Ltd.,

Rep by: M/s. Maniveera The Income Tax

Structure Pvt. Ltd., Officer,

No. 2, 11^th Floor, “Solus”, Ward – 4(1)(4),

1^st Cross, J C Road, Bangalore.

Vs.

Bangalore – 560 027.

PAN: AAGCM8605C

APPELLANT RESPONDENT

Assessee by : Shri Ravishankar, Advocate

Revenue by : Shri Subramanian .S, JCIT-DR

Date of Hearing : 03-12-2025

Date of Pronouncement : 02-03-2026

ORDER

PER SOUNDARARAJAN K., JUDICIAL MEMBER

This is an appeal filed by the assessee challenging the order of the

Ld.Addl/JCIT(A)-1, Delhi dated 26/11/2024 in respect of the A.Y. 2017-18

and raised the following grounds:

“1. The order passed by the authorities below insofar as it

is against the Appellant, is opposed to law, weight of

evidence, natural justice and probabilities on the facts and

circumstances of the Appellant’s case.

2. The Appellant denies itself liable to be assessed at

Rs.3,75,13,702/- as against the returned income of

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ITA No. 125/Bang/2025

Rs.2,97,19,347/- for the assessment year 2017-18, on the

facts and circumstances of the case.

3. The learned CIT(A) ought to have provided another

opportunity of hearing in the interest of natural justice

before dismissing the appeal on the facts and

circumstances of the case.

4. The learned CIT(A) has erred in upholding the order of

the learned assessing officer as the revenue was seized of

the fact that the appellant was going through insolvency

proceedings under the IBC, on the facts and circumstances

of the case.

5. The resolution plan in the case of the appellant has been

approved by the Hon’ble National Company Law Tribunal,

Special Bench, Bangalore vide IA No.373/2022 in CP(IB)

No.60/BB/2020 under section 9 of the Insolvency

Bankruptcy Code, 2016, ("IBC") dt:08.09.2023, thus, there

cannot be any demand recoverable from the appellant, on

the facts and circumstances of the case.

6. Grounds on disallowance of marketing expenses,

Rs.76,66,832/-:

a. The authorities below are not justified in disallowing a

sum of Rs.76,66,832/- incurred towards marketing as the

same is allowable under section 37 of the Act.

b. The expenditure incurred is of revenue in nature and for

the purpose of business, thus the expenditure deserves to

be allowed on the facts and circumstances of the case.

7. Grounds on disallowance of interest expenditure on

delayed TDS remittance, Rs.1,27,523/-:

a. The authorities below have failed to appreciate that the

interest expenditure incurred on delayed remittance of TDS

is Rs.1,04,186/-which has already been disallowed in the

computation of income and no further disallowance is

warranted on the facts and circumstances of the case.

b. The sum of Rs.2,31,709/- reported in tax audit report

pertains to total interest, including interest accounted in

subsequent period, though paid before the due date of

filing of the return of income and only a sum of

Rs.1,04,186/- pertains to impugned assessment year

which has been disallowed by the appellant in the return

of income, thus no additional disallowance is warranted

on the facts and circumstances of the case.

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ITA No. 125/Bang/2025

8. The Appellant denies the liability to pay interest under

section 234 of the Act in view of the fact that there is no

liability to additional tax as determined by the learned

Assessing Officer on the facts and circumstances of the

case.

9. The Appellant craves to add, alter, modify, substitute,

change and delete any or all of the grounds and to file a

paper book at the time of hearing the appeal.

10. In the view of the above and other grounds that may

be urged at the time of the hearing of appeal, the Appellant

prays that the appeal may be allowed in the interest of

justice and equity.”

2. The brief facts of the case are that the assessee is a builder and

property developer and filed their return of income on 31/10/2017 and

incurred a loss of R