DCIT,CIRCLE-5(1)(1), MUMBAI, MUMBAI V. GO AIRLINES(INDIA) LTD., NEW DELHI

ITA 4612/MUM/2023

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A) which deleted an adjustment made by the CPC on account of an increase in profit due to a deviation in the method of valuation under section 145A of the Income Tax Act. The revenue contended that the assessee failed to disclose the increase in profit in the return of income. However, the assessee had filed a rectification application under section 154, which was accepted, and the returned income was subsequently accepted by the AO during the scrutiny assessment. The Tribunal dismissed the revenue's appeal, supporting the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708673 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KANTI DATTA; DR
• Assessee Lawyers: UJJVAL GANGWAL; AR
• Keywords: Set aside
• Section: 143(3); 154

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 4612/Mum/2023 Assessment Year: 2022-23 DCIT, Circle – 5(1)(1), Mumbai Vs Go Airlines (India) Ltd. C/o Britannia Industries Limited A-33, Lawrence Road Industrial Area New Delhi - 110035 [PAN: AACCG2599K] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Ujjval Gangwal, A/R Revenue by : Shri Arun Kanti Datta, CIT, D/R सुनवाई की तारीख/Date of Hearing : 16/07/2025 घोषणा की तारीख /Date of Pronouncement: 16/07/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the revenue is preferred against the order of the ld. CIT(A)/Addl./JCIT(A) – 5, Chennai [hereinafter ‘the CIT(A)’] dated 20/10/2023 pertaining to AY 2022-23. 2. The grievance of the revenue reads as under:- “1. Whether, on the facts and circumstances of the case and in Law, the Addl. CIT(A) has erred in deleting the adjustment of Rs. 5,24,56,79,962/-made by the CPC on account of increase in profit due to deviation in method of valuation u/s 145A of the Act in the intimation u/s 143(1) dated 17.01.2023?\" 2. \"Whether, on the facts and circumstances of the case and in Law, the Addl, CIT(A) has erred in ignoring that the assessee has not disclosed the Increase in profit of Rs. 5,24,56,79,962/- computed on account of deviation in method of valuation u/s 145A in the relevant clause of the Part A-Ol of the return of income filed for AY 2022-23 and that the same is shown at \"0\"(Zero) therein?\" I.T.A. No. 4612/Mum/2023 2 3. \"Whether, on the facts and circumstances of the case and in Law, the Addl. CIT(A) has erred in not appreciating that the assessee was duty bound to disclose the variation in profit computed in accordance with the provisions of section 145A of the Act in the relevant clause of Part A-Ol of the return of income and that under the circumstances, adjustment of Rs: 5,24,56,79,962/- was rightly made by the CPC in the intimation n/s 143(1) dated 17.01.2023 issued for AY 2022-23 by reducing the business loss to that extent?\" The appellant prays that the order of the Addi, CIT(A) on the grounds be set aside and confirm the order of the AO. The appellant craves leave to add, amend or alter all or any of the grounds of appeal.” 3. At the very outset, the ld. Counsel for the assessee brought to our notice that pursuant to the intimation dated 17/01/2023 u/s 143(1) of the Act made by the CPC, Bengaluru, the assessee preferred an application for rectification u/s 154 of the Act and that rectification application has been allowed by the CPC. The order of rectification is placed at pages 13 to 36 of the paper book. The ld. Counsel for the assessee further stated that subsequently the return of income was selected for scrutiny assessment and while framing the assessment u/s 143(3) r.w.s. 144C(3) r.w.s. 144B of the Act vide order dated 05/05/2025, the AO also has accepted the returned income of the assessee. On such facts on record, we do not find any merit in the appeal of the revenue. The same is accordingly dismissed. 4. In the result, appeal of the revenue is dismissed. Order pronounced in the Court on 16th July, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 16/07/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 4612/Mum/2023 3 आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "