DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-4(1), KOLKATA, KOLKATA V. TIDE WATER OIL CO. (INDIA) LTD, KOLKATA

ITA 1451/KOL/2023

AI Insights

The case involves an appeal by the Revenue against the order of the Commissioner of Income-tax (Appeals), which allowed the appeal of Tide Water Oil Co. (India) Ltd. for the assessment year 2015-16. The primary issue was the incorrect claim of depreciation by the assessee due to an inadvertent mistake, which was later rectified. The Tribunal's decision focused on the maintainability of the Revenue's appeal, concluding that the lower authorities had correctly addressed the mistake and allowed the appropriate depreciation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473872 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAVEEN KISHORE
• Assessee Lawyers: ANUP SINHA; OBSERVING
• Keywords: Business income; Depreciation; TDS
• Section: 143(3); 154; 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.1451/KOL/2023 (Assessment Year: 2015-16) Dy. CIT, Circle 4(1) Aaykar Bhavan, P-7, Chowringhee Square, 8th Floor, Room No.23, Kolkata-700069 West Bengal Vs. Tide Water Oil Co. (India) Ltd. Yule House,8, Dr. Rajendra Prasad Sarani, Kolkata-700001, West Bengal (Appellant) (Respondent) PAN No. AABCT1122C Assessee by : Shri Anup Sinha, AR Revenue by : Shri Praveen Kishore, CIT Date of hearing: 13.03.2025 Date of pronouncement : 17.03.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.03.2023 for the AY 2015-16. 02. The only issue raised by the Revenue is against the order of ld. CIT (A) allowing the appeal of the assessee. 03. The facts in brief are that the assessee engaged in the business of manufacturing and marketing of Lubricating oils, Greases and Wind Power. The assessee filed the return of income on 23.11.2015, declaring total income at ₹214,71,41,320/- under the normal provisions of the Act, which was processed u/s 143(1) of the Act and assessed u/s 143(3) of the Act accepting the returned income on 29.12.2016. Thereafter the assessee found that due to inadvertent Page | 2 ITA No.1451/KOL/2023 Tide Water Oil Co. (India) Ltd.; A.Y. 2015-16 mistake less/short depreciation was claimed to the tune of ₹10 crore. The assessee during the year revised the accounting depreciation in the books of account due to change in method of charging depreciation and credited the depreciation to the tune of ₹30,19,67,049/-. While computing the business income, the appellant as required to add back the depreciation claimed of ₹7,44,61,429/- debited to the Profit and Loss account and claim ₹30,19,67,049/- credited to the profit and loss account. However, due to mistake the assessee inadvertently claimed ₹20,19,67,049/- instead of ₹30,19,67,049/- though ₹7,44,61,429/- was correctly added back on account of current depreciation. The assessee accordingly, moved an application u/s 154 of the Act before the AO(CPC), however the same was rejected. Thereafter, the assessee preferred the appeal before the ld. Commissioner of Income-tax (Appeals). 04. The ld. CIT (A) allowed the appeal of the assessee by observing and holding as under:- “6. Decision 6.1 Ground No.1: The assessee stated that assessee has return back depreciation of Rs.30,90,67,049/- however in the computation of business income the assessee claimed depreciation of Rs.20,19,67,049/-. Thus the assessee claimed lesser depreciation of Rs.10 crores. 6.1.1 The AO CPC-TDS rejected the assessee’s application u/s.154 on the ground that the same is a fresh claim. 6.1.2 In my opinion if the assessee’s claim is not accepted then assessee would be taxed at a figure which would be higher than its actual taxable income. The constitution of India provides that not a single penny should be collected from any person unless it is due. 6.1.3 In view of the above, the AO is directed to verify the claim of assesee and allow correct amount of depreciation. 6.1.4 This ground of appeal is allowed. Page | 3 ITA No.1451/KOL/2023 Tide Water Oil Co. (India) Ltd.; A.Y. 2015-16 05. Consequently, the ld. AO after examining the issue corrected the mistake and by passing an order u/s 251/ 143(3) and allowed the short claim to the tune of ₹10 crore. 06. Against this order of ld. CIT (A), the Department come in appeal challenging the said order, whereby the ld. AO was directed to verify the claim and allow the same if factual mistake is there. 07. After hearing the rival contentions and perusing the materials available on record, we are unable to understand as to how the appeal of the Department is maintainable. The ld. CIT (A) correctly observed the factual mistake on the part of the assessee and restored the matter to the file of the ld. AO to verify the claim of the assessee and allow the correct amount of depreciation which was corrected by the ld. AO after examining the facts presented by the assessee. Considering these facts and circumstances, we are of the view that the appeal of the Revenue is not maintainable and same is dismissed. 08. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 17.03.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.03.2025 Sudip Sarkar, Sr.PS Page | 4 ITA No.1451/KOL/2023 Tide Water Oil Co. (India) Ltd.; A.Y. 2015-16 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "