EFPRO ENGINEERS P. LTD.,CHENNAI V. DCOT, CORPORATE CIRCLE-2(1), CHENNA

ITA 39/CHNY/2025

AI Insights

The case involves EFPRO Engineer Private Limited, which appealed against the orders of the Deputy Commissioner of Income Tax for the Assessment Years 2009-10 and 2010-11. The appeals were related to incorrect entries made in the electronic filing of income tax returns, which led to double taxation of certain incomes. The tribunal found that the mistakes were inadvertent and directed a recalculation of the tax liabilities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46403 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: S. SRIDHAR
• Keywords: Set aside; Source of fund
• Section: 250

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.38/Chny/2025, Assessment Years: 2009-10 आयकर अपील सं./ITA No.39/Chny/2025, Assessment Years: 2010-11 EFPRO Engineer Private Limited, No.D-8, Industrial Estate, Ambattur, Chennai-600 058. [PAN: AAACE1450H] Deputy Commissioner of Income Tax, Corporate Circle-2(1) Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri S.Sridhar, Advocate प्रत्यर्थी की ओर से /Revenue by : Smt.Samantha Mullamudi, Addl.CIT सुनवाई की तारीख/Date of Hearing : 27.03.2025 घोषणा की तारीख /Date of Pronouncement : 09.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : The below mentioned appeals have been filed by the appellant assessee for AY-2009-10 and AY-2010-11 contesting the order of Ld. First Appellate Authority indicated Column-E, herein below:- S. No. Appeal Nos. AYs Appellant CIT(A) Order Details Respondent A B C D E F 1 ITA No. 38 / Chny / 2025 2009-10 EFPRO Engineer Private Limited, No.D-8, Industrial Estate, Ambattur, Chennai-600 058. [PAN: AAACE1450H] DIN & Order No.ITBA / APL / S / 250 / 2024-25 / 1071224555(1) dated 14.12.2024 Deputy Commissioner of Income Tax, Corporate Circle-2(1) Chennai 2 ITA No. 39 / Chny / 2024 2010-11 DIN & Order No.ITBA / APL / S / 250 / 2024-25 / 1071224493(1) dated 14.12.2024 ITA No.38 & 39 /Chny/2025 Page - 2 - of 6 2.0 The twin appeals for AY-2009-10 & AY 2010-11 belong to the same assessee containing almost identical facts, for the purposes of convenience were heard together and are being adjudicated by this common order. ITA No.38/Chny/2025, Assessment Years: 2009-10 3.0 As regards the above appeal, the Ld.Counsel for the assessee submitted that during the said assessment year, the appellant had only the rental income to the tune of Rs. 13,18,829/- and interest income to the tune of Rs. 5,51,854/- as its source of income. It was submitted that while preparing statement of income, the rental income and interest income earned from the fixed deposits were credited to the profit & loss account. In the statement of total income, prepared for computing the tax liability under different heads of income in accordance with the Act, the above rental income and interest income aggregating to Rs. 14,09,875/- was considered under their respective heads and accordingly, the tax thereon was calculated. However, while filing the return of income electronically, the appellant company had wrongly filled up Row No. 14 of the Schedule BP as Rs.18,70,683/- being the aggregate of rental income and interest income earned during the assessment year under consideration and wrongly filled up Row No.23 of the Schedule BP as Rs.6,82,142/- instead of NIL. Similarly, the appellant had wrongly filled the Row No. 1(c) of the Schedule OS as Rs.13,18,829/- instead of NIL ITA No.38 & 39 /Chny/2025 Page - 3 - of 6 thereby resulting in double taxation of the same amount. The Ld. Counsel drew our attention to the following inadvertent mistake committed by the assessee in its return of income. It was argued that due to the mistakes committed while filing the Return of income the total income of the appellant was shown as Rs.45,99,387/- instead of the actual income chargeable to tax to the tune of Rs.14,09,875/-. S.No. Mistake committed in the return of income Net Impact(Rs.) 1. Row No.14 of BP Schedule shown as Rs.18,70,683/- instead of Rs. 6,82,141/- 11,88,542 2. Row No.23 of BP schedule shown as Rs.6,82,142/- instead of Rs.NIL 6,82,142 3. Row No.1(c ) of OS schedule shown as Rs.13,18,829/- instead of Rs.NIL 13,18,829 Total(A) 31,89,513 4.0 The Ld.DR relied upon the order of lower authorities. ITA No.39/Chny/2025, Assessment Years: 2010-11 5.0 As regards the above appeal, the Ld.Counsel for the assessee submitted hat during the said assessment year, the appellant had only rental income to the tune of Rs.11,58,218/- and interest income to the tune of Rs.5,22,382/- as its sources of income. The appellant submitted that while preparing statement of income, the rental income and interest income earned from the fixed deposits were credited to the profit & loss account. In the statement of total income, prepared for computing the tax liability under different heads of income in ITA No.38 & 39 /Chny/2025 Page - 4 - of 6 accordance with the Act, the above rental income and interest income aggregating to Rs.16,80,600/- was considered under their respective heads and accordingly, the tax thereon was calculated. However, while filing the return of income electronically, the appellant company had wrongly filled up Row No. 3 of the Schedule BP as Rs. NIL, instead of Rs.16,80,600/- being the aggregate of rental income and interest income earned during the assessment year under consideration resulting in a higher income from business at Rs.16,80,600/-. The appellant pointed out to the below mentioned mistakes in its return. It was submitted that due to the mistakes committed while filing the Return of income the total income of the appellant was shown as Rs.29,80.323/- instead of the actual income chargeable to tax to the tune of Rs.12,79,723/-. S.No. Mistake committed in the return of income Net Impact(Rs.) 1. Row No.03 of BP schedule shown as Rs.NIL instead of Rs.16,80,600/- 16,80,600 TOTAL(A) 16,80,600 6.0 The Ld.DR relied upon the order of lower authorities. 7.0 We have heard rival submissions in the light of material available on records. Upon consideration of the submissions made by the Ld.AR, we are of the view that there appears to be a clear case of double addition in this case. The inadvertent mistake committed by the assessee cannot be a ground for collecting more taxes than those legally ITA No.38 & 39 /Chny/2025 Page - 5 - of 6 due from the taxpayer. Accordingly, we are of the considered view that ends of justice would be met if the matter is set aside to the file of Ld. assessing officer for limited verification of assessee’s claims and to recalculate the tax liabilities in accordance with law. Accordingly, we set aside the order of lower authorities and direct the Ld. assessing officer to examine the impugned mistakes pointed out by the assessee and recalculate the tax liabilities in accordance with law. The grounds of appeal raised by the assessee in ITA No.38/Chny/2025 are therefore allowed for statistical purposes. 7.1 As reportedly, facts in ITA No.39, are identical to those in ITA No.38 and therefore the decision in ITA No.38/Chny/2025 supra shall apply mutatis mutandis in ITA No.39/Chny/2025. Thus we direct the Ld. assessing officer to examine the impugned mistakes pointed out by the assessee and recalculate the tax liabilities in accordance with law. The grounds of appeal raised by the assessee are therefore allowed for statistical purposes. ITA No.38 & 39 /Chny/2025 Page - 6 - of 6 8.0 In the result, both the appeals vide ITA No.38 & 39/Chny/ 2025 are allowed for statistical purposes. Order pronounced on 9th , April-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 9th , April-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "