ROYAL THERMOSET PRIVATE LIMITED, MUMBAI V. CIT(A)-24, MUMBAI

ITA 117/MUM/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7927 (ITAT-MUMBAI)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K BEPARI
• Assessee Lawyers: SANJAY SHAH
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH SMC, MUMBAI BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA NO.117/M/2018 ASSESSMENT YEAR: 2012-13 M/S. ROYAL THERMOSET PVT. LTD., 37, 2 ND FLOOR, SHRINIVAS APT., DATAR COLONY, V.S. MARG, BHANDUP EAST, MUMBAI 400 042 PAN: AAACR1918F VS. COMMISSIONER OF INCOME TAX (A)-(24), A-WING, 3 RD FLOOR, MITTAL COURT, NARIMAN POINT, MUMBAI - 400021 (APPELLANT) (RE SPONDENT) PRESENT FOR: ASSESSEE BY : SHRI SANJAY SHAH, A.R. REVENUE BY : SHRI S.K. BEPARI, SR. D.R. DATE OF HEARING : 04.09.2018 DATE OF PRONOUNCEMENT : 17.09.2018 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSES SEE AGAINST THE ORDER DATED 21.07.2017 OF THE COMMISSIONE R OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS TH E CIT(A)] RELEVANT TO ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THE VAR IOUS GROUNDS OF APPEAL IS AGAINST THE CONFIRMATION OF AD DITION OF RS.2,85,049/- BY LD. CIT(A) UPHOLDING THE INTIMATION UNDER SECTION 143(1) OF THE ACT WHEREIN THE ACIT CPC HAS ADDED RS.2,85,049/- TO THE INCOME OF THE ASSESSEE WHICH RE PRESENTS ITA NO.117/M/2018 M/S. ROYAL THERMOSET PVT. LTD. 2 THE PROVISION FOR TAXATION SHOWN AS SUCH IN THE ANN UAL ACCOUNTS . 3. THE FACTS IN BRIEF ARE THAT AT THE TIME OF GENER ATING XML THE PROVISION FOR INCOME TAX OF RS.2,85,049/- WAS A DDED BACK TO THE TAXABLE INCOME OF THE ASSESSEE RS.9,22,488/- RESULTING IN THE TOTAL INCOME AT RS.12,07,488/-. THE ASSESSEE RECEIVED INTIMATION UNDER SECTION 143(1) OF THE ACT FROM CPC BANGALORE INDICATING THE RETURNED INCOME HIGHER BY RS.2,85,049/ - DUE TO ADDITION OF PROVISIONS FOR TAXATION TO THE TOTAL IN COME. THE RECTIFICATION APPLICATION MOVED BY THE ASSESSEE UND ER SECTION 154 OF THE ACT REQUESTING FOR THE RECTIFICATION OF APPARENT MISTAKE, WHICH HAS HAPPENED AT THE TIME OF GENERATIN G XML, H WAS COLLECTIVELY REPORTED IN FORM 3CD WHICH WAS FIL ED ELECTRONICALLY AS SHOWING PROVISION FOR TAXATION. 4. IN THE APPELLATE PROCEEDINGS, THE LD. CIT(A) ALSO DISMISSED THE APPEAL OF THE ASSESSEE BY HOLDING THA T THE ASSESSEE ITSELF UPLOADED THE RETURN OF INCOME WITH TAX AUDIT REPORT AND THE PROCESSING DONE ELECTRONICALLY BY CP C WHEREIN THE SAID ADDITION AUTOMATICALLY MADE ON ACCOUNT OF MENTIONING THE SAID AMOUNT AT A WRONG COLUMN/PLACE. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL ON RECORD INCLUDING THE ANNUAL ACCOUNTS OF THE COMP ANY, WE FIND THAT RS.2,85,049/- IS SHOWN ON ACCOUNT OF PROVIS ION FOR TAXATION BELOW THE LINE IN THE PROFIT & LOSS ACCOUN T AND WAS CORRECTLY REPORTED IN THE TAX AUDIT REPORT WHICH WA S UPLOADED ELECTRONICALLY. HOWEVER, WHILE GENERATING XML FILE T HE SAME ITA NO.117/M/2018 M/S. ROYAL THERMOSET PVT. LTD. 3 WAS ADDED TO THE INCOME OF THE ASSESSEE INADVERTENT LY. IN OUR OPINION, THIS IS A MISTAKE APPARENT IN THE COMP UTATION OF TOTAL INCOME AS THE PROVISION FOR TAXATION OF RS.2,8 5,049/- CAN NOT BE ADDED TO THE INCOME OF THE ASSESSEE AND HAS TO BE EXCLUDED. MERELY BECAUSE THE INCOME HAS BEEN COMP UTED INCORRECTLY BY ADDING PROVISIONS FOR TAXATION INADV ERTENTLY CAN NOT BE GROUND FOR DISMISSING THE APPEAL OF THE ASSE SSEE FOR THE REASON THAT ASSESSEE ITSELF FILE THE RETURN OF INCOME. IN VIEW OF THE ABOVE DISCUSSION WE ARE UNABLE TO AGREE WITH THE CONCLUSION DRAWN BY THE CIT(A) AND HENCE THE ORDER OF LD. CIT(A) IS HEREBY SET ASIDE AND THE AO IS DIRECTED TO REDUCE THE PROVISIONS FOR TAXATION OF RS. 2,85,049/- FROM TH E ASSESSED INCOME. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 17.09.2018. SD/- SD/- (JOGINDER SINGH) (RAJESH KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 17.09.2018. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY /ASSTT. REGISTRAR, ITAT, MUMBAI.