CONCORD FORTUNE MINERALS INDIA PVT. LTD.,KOLKATA V. A.C.I.T., CIRCLE - 11(1), KOLKATA

ITA 1650/KOL/2025

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Concord Fortune Minerals India Pvt. Ltd. appealed against the order of the National Faceless Appeal Centre, Delhi, which confirmed an addition of 40,95,670 to the assessee's income for the Assessment Year 2017-18. This addition was initially made by the Centralized Processing Center (CPC) under section 143(1) of the Income-tax Act, 1961, due to inconsistencies/disallowances under section 37 of the Act. The assessee argued that there was a clerical error in the tax audit report regarding the reported expenses, which was later corrected in a revised report. The Tribunal found that the CIT (A) had not considered this correction and thus set aside the CIT (A)'s order, directing the deletion of the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 830079 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 24-07-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR PATI
• Assessee Lawyers: AMIT AGARWAL
• Keywords: Set aside
• Section: 142(1); 37

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No. 1650/KOL/2025 (Assessment Year:2017-18) Concord Fortune Minerals India Pvt. Ltd. 238A, A.J.C. Bose Road, Rabindra Sadan, Unit No.5A, 5B & 5C, Kolkata-700020, West Bengal Vs. ACIT, Circle 11(1) Aaykar Bhawan, P-7, Chowringhee Square, Kolkata- 700069, West Bengal (Appellant) (Respondent) PAN No. AADCC1615J Assessee by : Shri Amit Agarwal, AR Revenue by : Shri Manoj Kumar Pati, DR Date of hearing: 12.01.2026 Date of pronouncement: 14.01.2026 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 27.05.2025 for the AY 2017-18. 2. The only issue raised by the assessee in various grounds of appeal is against the order of ld. CIT (A) confirming the addition of ₹40,95,670/- as made by the ld. AO, CPC u/s 143(1) of the Income-tax Act, 1961 (the Act) dated, 06.03.2019. Printed from counselvise.com Page | 2 ITA No. 1650/KOL/2025 Concord Fortune Minerals India Pvt. Ltd.; A.Y. 2017-18 3. The facts in brief are that the assessee filed the return of income on 29.11.2017, declaring total income at ₹18,74,280/-. The case of the assessee was selected for scrutiny and statutory notices u/s 143(2) and 142(1) of the Act along with questionnaire were issued and served upon the assessee. The assessee is engaged in the business of trading in minerals including export and import of all minerals and trading in food grains. A show cause notice dated 21.04.2021, was issued to the assessee containing draft assessment order. The assessee replied on 23.04.2021. The ld. AO thereafter noted in Para no.5 that the addition of ₹40,95,670/- was made by the CPC in proceedings u/s 143(1) of the Act on account of inconsistence / disallowance u/s 37 of the Act, which was sustained. Accordingly, the income was assessed at ₹59,69,950/-. 4. The ld. CIT (A) also confirmed the order of the ld. AO on the ground that the addition was rightly made by the ld. AO on the basis of audit report filed by the assessee. 5. After hearing the rival contentions and perusing the materials available on record, we find that assessee has submitted before the ld. CIT (A) that assessee has wrongly reported in the Tax Audit Report ₹40,95,570/- at serial no.21a filed originally on 12.09.2017. For the ready reference excerpts of the original report as well as revised report are extracted below:- B l a n k Printed from counselvise.com Page | 3 ITA No. 1650/KOL/2025 Concord Fortune Minerals India Pvt. Ltd.; A.Y. 2017-18 5.1. We note that the assessee has wrongly reported ₹41,42,088/- in serial no.21(a), towards expenses incurred at club being entries fee and subscription. Whereas, the correct amount was Rs. ₹41,421/-. In our opinion, the ld. CIT (A) has failed to take the connivence of the factual mistake committed by the auditor of the assessee who later revised the tax audit report and uploaded the same by correcting the mistake. In our opinion, the order of ld. CIT (A) confirming this addition is unreasonable and cannot be sustained. Accordingly, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition. Printed from counselvise.com Page | 4 ITA No. 1650/KOL/2025 Concord Fortune Minerals India Pvt. Ltd.; A.Y. 2017-18 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 14.01.2026. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 14.01.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "