DCIT, CIR. 4(1), KOLKATA V. MOGULKATA TEA CO. PVT. LTD., KOLKATA

MA 4/KOL/2025

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle-4(1), Kolkata as the appellant and Mogulkata Tea Co. Pvt. Ltd. as the respondent. The dispute arose from an addition made under section 41(1) of the Income Tax Act, 1961, during the assessment year 2021-22. The ITAT had previously ruled in favor of the assessee, finding that the addition constituted a double addition as the amount was already included in the assessee's audited financial statements and tax returns. The revenue's application for rectification of this order was dismissed by the ITAT, which held that there was no clerical or apparent mistake in the original order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35888 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 13; 44AB

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “एसएमसी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] M. A No. 4/Kol/2025 (Arising out of I.T.A. No. 201/Kol/2024) Assessment Year: 2021-22 DCIT, Circle-4(1), Kolkata Vs. Mogulkata Tea Co. Pvt. Ltd. (PAN: AAJCM 0730 B) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 21.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 03.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Manoj Kataruka, Advocate For the revenue / राजèव कȧ ओर से Shri Sailen Samadder, Addl. CIT Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: The present miscellaneous application has been filed by the revenue for rectification in the order passed by the ITAT in ITA No. 201/Kol/2023 dated 08.05.2024 on the following grounds: “4. At the outset, Ld. Counsel for the assessee submitted that the alleged addition is a double addition as the assessee has already offered the alleged sum to income and is duly reflected in its audited financial statement. 2 MA NO. 4/Kol/2025 (Arising out of I.T.A. No. 201/Kol/2024) Assessment Year: 2021-22 Mogulkata Tea Co. Pvt. Ltd. 5. On the other hand, ld. D/R stated that the assessee had not filed necessary details about the amount written off u/s 41(1) of the Act during the course of hearing before the lower authorities. 6. We have heard rival contentions and perused the records placed before us. We observe that the assessee is a private limited company and it furnished its income tax return for AY 2021-22 on 15.02.2022 declaring total income at Rs. 1,15,500/- which was subsequently revised on 09.02.2022. Tax Audit Report u/s 44AB of the Act was also submitted online and the Tax Audit report the copy of which is placed at paperbook from page 5 to 27, in column 25 of Form 3CD attached to Ta Audit Report, the auditor has mentioned the amount of profit chargeable to tax u/s 41(1) of the Act and has mentioned the names of 13 parties with the amount which totals to Rs. 2,70,189.38. Based on such observation in the Tax Audit Report, the CPC while processing the return u/s 143(1)(a) of the Act has made an addition u/s 41(1) of the Act at Rs. 2,70,188/- 7. We on perusal of the audited financial statement observe that in the balance sheet under the head “Miscellaneous receipts” (paperbook page 13) a total amount is mentioned at Rs. 3,79,245/. The miscellaneous receipts is shown under the head “Other income” and therefore, the net profit for the year arrived at after including the miscellaneous receipts. Further, the bifurcation of miscellaneous receipts is given at page 29 of the paperbook and it inter alia includes sundry balances written off at Rs. 2,70,189.38. We thus, find merit in the contention of ld. CIT(A) and we are of the considered view that alleged sum of Rs. 2,70,188/- has already been offered to tax by the assessee and the action of the CPC u/s 143(1)(a) of the Act has resulted in double addition. We, therefore, delete the impugned addition of Rs. 2,70,188/- made u/s 41(1) of the Act, set aside the finding of the lower authorities and allow the grounds raised by the assessee.” 2. The Ld. A.R vehemently opposes the contention of the department by saying that there is nothing to be rectified in the order passed by ITAT, Kolkata dated 08.05.2024 as there is no clerical and apparent mistake in the order. The ld. Counsel submits that the order passed by ITAT, Kolkata in ITA No. 201/Kol/2024 is well reasoned and explained order and none of the issues has been remained untouched. The Ld. Counsel submits that department wants to review the order passed by the ITAT, Kolkata in the garb of the rectification that cannot be permissible under the law. 3. Upon hearing the submission of the counsel of the respective parties, we have perused the order passed in ITA No. 201/Kol/2024, the order passed after hearing both the parties. The order is well reasoned and explained order by discussing the every grounds of appeal raised by the assessee. The Ld. D.R in its grounds wants to review the order passed by the ITAT, Kolkata as it appears from the ground mentioned that Hon’ble ITAT had no basis when it compared to the part of OI and schedule-BP of the report filed by the assessee. On perusal of the order passed by the ITAT it appears to us that Hon’ble Bench at para 6 and 7 has elaborately discussed the tax audit report in the 3 MA NO. 4/Kol/2025 (Arising out of I.T.A. No. 201/Kol/2024) Assessment Year: 2021-22 Mogulkata Tea Co. Pvt. Ltd. paper book filed by the assessee and thereafter allow the appeal of the assessee. There is no clerical and apparent mistake in the order passed by the ITAT, Kolkata. We do not find any merit in the miscellaneous application. The Tribunal has got no power to review its own order. In the result, the miscellaneous application filed by the revenue is dismissed. Order is pronounced in the open court on 3rd April, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 3rd April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- DCIT, Circle-4(1), Kolkata 2. Respondent – Mogulkata Tea Co. pvt. Ltd., 240B, A. J. C. Bose Road, 2nd Floor, Kolkata-700020 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. PCIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "