GENERAL MILLS INDIA PRIVATE LIMITED,MUMBAI V. PRINCIPLE COMMISSIONER OF INCOME TAX, MUMBAI-6, MUMBAI

ITA 2629/MUM/2024

AI Insights

The case involved General Mills India Private Limited appealing against an order passed under section 263 of the Income-tax Act by the Principal Commissioner of Income Tax, Mumbai - 6. The appeal contested the validity of the order which directed the Assessing Officer to make further inquiries regarding the allowance of a lease rent expense of INR 6,51,37,459. The appellant argued that the original assessment order was neither erroneous nor prejudicial to the interest of the revenue, and that the National e-Assessment Centre had adequately addressed all concerns during the assessment proceedings. However, before the tribunal could make a determination, the assessment order was revised in favor of the appellant, leading to the withdrawal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472726 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: KISHORE DULE; DR
• Assessee Lawyers: HITEN CHANDE; AR
• Keywords: Opportunity of being heard; Revision of order
• Section: 143(3); 142(1); 263; 144C; 2(A)

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. 2629/Mum/2024 Assessment Year: 2017-18 General Mills India Private Limited 902 Ventura Hiranandani Business Park Hiranandani Gardens Powai Mumbai - 400076 [PAN: AAACG1773B] Vs Principal Commissioner of Income Tax, Mumbai - 6 अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Hiten Chande, A/R Revenue by : Shri Dr. Kishore Dule, CIT, D/R सुनवाई की तारीख/Date of Hearing : 01/04/2025 घोषणा की तारीख /Date of Pronouncement: 01/04/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. PCIT-6, Mumbai, [hereinafter ‘the ld. Pr. CIT’] framed u/s 263 of the Act dt. 12/03/2024, pertaining to AY 2017-18. 2. The grievance of the assessee reads as under:- “Validity of order passed under section 263 of the Act 1. Erred in not appreciating that the assessment order passed by National e-Assessment Centre, Delhi ('NaFAC') under section 143(3) read with section 144C of the Act was neither erroneous nor prejudicial to the interest of the revenue. 2. Erred in not appreciating that assessment order passed by NaFAC is not erroneous as there is no cogent material to show that there was non- application of mind on part of NaFAC or that NaFAC has committed any mistake/error of fact or law. 3. Erred in passing an order under section 263 of the Act without providing an express finding to the effect that assessment order is erroneous which has caused prejudice to revenue, thereby initiating proceedings under section 263 of the Act for making roving inquiries. I.T.A. No. 2629/Mum/2024 Assessment Year: 2017-18 2 4. Erred in invoking explanation 2(a) of section 263 of the Act while passing the order when the said explanation was not invoked in the notice issued initiating the proceedings. 5. Erred in invoking explanation 2(a) of section 263 of the Act holding that the assessment order was passed without making inquiries or verification without appreciating that Appellant furnished details of lease rentals payments upon inquiry made by NaFAC during assessment proceedings which was duly verified, and no adverse inference was drawn. 6. Erred in passing order under section 263 of the Act without taking cognizance of submissions made by Appellant and providing no reason for deeming submissions as unacceptable. No underassessment of income 7. Erred in alleging underassessment of income of Rs 6,51,37,459 pertaining to short-term lease rent expense based on mere conjunctures and surmises, ignoring the factual matrix of the case as well as the nature of the transactions undertaken by Appellant.” 3. The assessee filed the following letter addressing the Bench:- “Hon’ble Members, Re: General Mills India Private Limited (‘GMIPL’ or ‘the Appellant’) PAN:AAACG1773B Assessment Year (‘AY’): 2017-18 Appeal No. & Bench: 2629/MUM/2024 - ‘G’ Bench Sub: Submission of assessment order passed under section 143(3) read with section 263 of the Income-tax Act, 1961 (‘the Act’) dateci 24 March 2025 We refer to the captioned appeal scheduled for hearing before the Hon’ble Bench on 01 April 2025. In this connection, the Appellant wishes to submit the following: • The captioned appeal has been filed against the order dated 12 March 2024 passed under section 263 of the Act by the Principal Commissioner of Income Tax, Mumbai - 6 (‘learned PCIT’) for the captioned AY. As per the said order, the Assessing Officer was directed to make an enquiry on the allowance of lease rent expense of INR 6,51,37,459, after giving the Appellant an opportunity of being heard. • Pursuant to the above, the Deputy Commissioner of Income-tax, Circle 15(1 )(2) (‘learned AO’) issued notices under section 142(1) of the Act calling for various details from the Appellant relating to the subject matter. • On perusal of submissions filed by the Appellant, the learned AO passed the assessment order dated 24 March 2025 under section 143(3) read with section 263 of the Act, accepting the contentions of the Appellant and allowing a deduction of lease I.T.A. No. 2629/Mum/2024 Assessment Year: 2017-18 3 rent expense of INR 6,51,37,459. A copy of the assessment order dated 24 March 2025 has been enclosed as Annexure 1. • In the above backdrop, the Appellant submits that since the aforementioned assessment proceedings have been completed in favour of the Appellant, the captioned appeal has become infructuous. Having mentioned the above, the Appellant reserves the right to revive the appeal at a future date if any subsequent proceedings were initiated adversely impacting the Appellant. We request the Hon’ble Bench to take the above on record and oblige. Yours faithfully, For General Mills Private Limited” 4. Noting the contents of the letter, the appeal is dismissed as withdrawn. Order pronounced in the Court on 1st April, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 01/04/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs 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 "