GRASIM INDUSTRIES LTD,MUMBAI V. ACIT 6(3), MUMBAI

MA 210/MUM/2025

AI Insights

The case involves Grasim Industries Limited, the appellant, against the Assistant Commissioner of Income Tax, the respondent, concerning a dispute over a disallowance of Rs. 4,57,39,010 made under Section 43B of the Income Tax Act for the Assessment Year 2006-2007. The Revenue had appealed against the deletion of this disallowance by the CIT(A), which was initially based on a previous ITAT order favoring the Assessee for a different assessment year. However, it was later revealed that the Revenue had not appealed on similar grounds for subsequent years, which was an oversight by the Tribunal in their initial ruling. The Tribunal acknowledged this oversight and allowed the Miscellaneous Application to correct the record and re-adjudicate the specific ground.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785236 (ITAT-MUMBAI)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 07-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Section: 43B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL \"G\" BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER MA No.210/MUM/2025 (Arising out of ITA No.4385/Mum/2009) (Assessment Year:2006-2007) Grasim Industries Limited (Corporate Finance Division) A-2, Aditya Birla Centre, S. K. Ahire Marg, Worli, Mumbai – 400030. Maharashtra [PAN:AAACG4464B] ……………. Appellant Vs Assistant Commissioner of Income Tax Circle 6(3), Mumbai Room No.522, 5th Floor, Aayakar Bhavan, M. K. Road, Mumbai – 400020. ……………. Respondent Appearance For the Appellant/ Assessee For the Respondent/Department : : Shri J. D. Mistry, Senior Advocate & Shri Fenil Bhatt Shri Swapnil Choudhary Date Conclusion of hearing Pronouncement of order : : 10.10.2025 28.10.2025 O R D E R Per Rahul Chaudhary, Judicial Member: 1. The present Miscellaneous Application has been preferred by the Assessee arising from Common Order, dated 25/02/2025 passed by the Tribunal whereby Cross Appeals for the Assessment Year 2006- 2007 were disposed off. M.A. No.210/Mum/2025 has been moved by the Assessee in respect of ITA No. 4385/Mum/2009 (Departmental Appeal). 2. We have heard Learned Senior Counsel appearing for the Assessee and Learned Departmental Representative for the Revenue. Printed from counselvise.com MA No.210/Mum/2025 (Arising out of ITA No.4385/Mum/2009) Assessment Year 2006-2007 2 3. The relevant facts in brief are that the Revenue has raised the following Ground of Appeal in ITA No. 4385/Mum/2009: “Ground No. 1. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in deleting the disallowance of Rs. 4,57,39,010/- made u/s 43B of the Act by relying upon the order of the ITAT in the assessee's own case for the AY. 1993-94 without appreciating that the department had not accepted the findings of the Hon'ble Tribunal and has preferred further appeal u/s 260A.” 4. Vide order dated 25/02/2025, Tribunal allowed the above ground in favour of the Revenue. 5. During the course hearing of the present Application it was pointed out that in the Ground No. 1 raised by the Revenue reference has been made to order passed by the Tribunal for the Assessment Year 1993-1994. By way of the aforesaid order passed by the Tribunal, Reference No. 1569/Mum/1997 arising from ITA No. 1523/Mum/1997 was rejected by the Tribunal. It is the case of the Revenue that the Revenue has not accepted the aforesaid decision of the Tribunal. Whereas, it was submitted by the Learned Senior Counsel for the Assessee that for the subsequent assessment years, the Revenue has not preferred appeal on the issue pertaining to deduction under Section 43B of the Act that has been raised by way of Ground No.1 in the appeal preferred by the Revenue for the Assessment Year 2006-2007 [ITA No.4385/Mum/2009]. This fact had escaped the attention of the Tribunal while adjudicating Ground No. 1. Reliance in this regard, was placed on Chart filed by the Assessee during the course of hearing of the appeal. 6. The learned Departmental Representative could not controvert the aforesaid submission made on behalf of the Assessee and submitted email sent by the Assessing Officer stating that no appeal on the issue under consideration has been filed for the Assessment Year Printed from counselvise.com MA No.210/Mum/2025 (Arising out of ITA No.4385/Mum/2009) Assessment Year 2006-2007 3 2003-2004 and 2004-2005. 7. Perusal of the record shows that the above facts had escaped the attention of the Tribunal while disposing of Ground No.1 raised by the Revenue in ITA No.4385/Mum/2009, and the same required consideration. Thus, in our view a mistake apparent of record had crept into the Common Order, dated 25/02/2025, to the extent of adjudication of Ground No.1 raised by the Revenue in appeal for the Assessment Year 2006-07 and therefore, the said order is recalled to the with the limited purpose of disposing Ground No. 1 raised ib ITA No. 4385/Mum/2009, afresh after taking into consideration the relevant facts (including the facts stated hereinabove). In terms of the aforesaid, the present miscellaneous application is allowed. The Registry is directed to list the appeal for hearing before regular Bench in due course for limited purpose of adjudication of Ground No. 1 raised by the Revenue in ITA No. 4385/Mum/2009 afresh. 8. In result, the Miscellaneous Application preferred by the Assessee is allowed. Order pronounced on 28.10.2025. Sd/- Sd/- (Narendra Kumar Billaiya) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 28.10.2025 Milan, LDC Printed from counselvise.com MA No.210/Mum/2025 (Arising out of ITA No.4385/Mum/2009) Assessment Year 2006-2007 4 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध, आयकर अपीलीय अदधकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai Printed from counselvise.com "