Narsingpore Tea Co. Pvt. Ltd., Kolkata V. D.C.I.T., Circle - 4(2), Kolkata, Kolkata

ITA 418/KOL/2022

AI Insights

The case involves Narsingpore Tea Co. Pvt. Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the rectification of a typographical error in the income computation for the Assessment Year 2009-10. Originally, the return was accepted under section 143(1), but was later reopened under section 148, leading to a revised assessment under section 143(3) read with section 147. The dispute arose when the Assessing Officer corrected a typographical error in the income figure used for tax computation under section 154, which the assessee contested, arguing it constituted an unauthorized enhancement of taxable income.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129090 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-02-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 19-07-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Transactions in derivatives
• Section: 147; 148; 143(3); 143(1)

Judgement Text

ITA No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘A’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Dr. Manish Borad, Accountant Member I.T.A. No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited,............Appellant Chatterjee International Centre, 16 th Floor, Room No 9, 33A, Jawaharlal Nehru Road, Kolkata-700071 [PAN: AABCN0998A] -Vs.- Deputy Commissioner of Income Tax,.......Respondent Circle-4(2), Kolkata, Aayakar Bhawan, 4 th Floor, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri P.J. Bhinde, CA, appeared on behalf of the assessee Smt. Ranu Biswas, Addl. CIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing : February 28, 2023 Date of pronouncing the order : February 28, 2023 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 17.05.2022 passed for Assessment Year 2009-10. ITA No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited 2 2. The assessee has taken four grounds of appeal, however, its grievances revolve around a single issue, namely ld. CIT(Appeals) has erred in upholding 154 order of the ld. Assessing Officer. 3. Brief facts of the case are that originally return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 on 27.12.2010 vide which ld. Assessing Officer has accepted the total income declared by the assessee. However, the assessment order was reopened by issuance of a notice under section 148 of the Income Tax Act on 31.03.2016. The ld. Assessing Officer thereafter determined the taxable income of the assessee vide assessment order dated 09.06.2017 passed under section 143(3) read with section 147 of the Income Tax Act. The copy of this assessment order has not been placed on record by the ld. Counsel for the assessee. The ld. Assessing Officer thereafter took cognizance under section 154 of the Income Tax Act. He rectified the computation of income. The ld. Assessing Officer has observed that total income of the assessee was taken at Rs.25,42,680/- as against Rs.25,64,526/-. This later figure has been discussed by the ld. Assessing Officer in the assessment order and in the body of the assessment order, this addition was made. The only error, according to the ld. Assessing Officer crept in the proceeding, was typographical while taking this figure in the computation of income. Hence, he rectified this typographical error. ITA No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited 3 4. Dissatisfied with this, assessee carried the matter in appeal before the ld. CIT(Appeals). The assessee contended that the action taken under section 154 is beyond its scope because by taking higher figure. The ld. Assessing Officer has enhanced the taxable income of the assessee and such step could not be taken without issuing a show-cause notice for enhancement. In other words, the enhancement can never be carried out by exercising the power under section 154 of the Income Tax Act. The ld. CIT(Appeals) has rejected this contention of the assessee and observed that he has corrected a figure. The demand raised of Rs.13,46,160/- remains the same in the impugned order, i.e. order passed under section 154 as well as in the order passed under section 143(3) read with section 147 of the Income Tax Act. This brief finding of the ld. CIT(Appeals) reads as under:- “It is observed from the impugned order that it is a speaking order and which clearly mentions that the tax was computed on the total income of Rs.25,42,680/- in the assessment order passed u/s 143(3) r.w.s. 147 of the I.T. Act on 09.06.2017 instead of the total income of Rs.25,64,526/- in the assessment order. I have perused the assessment order u/s 143(3) r.w.s. 147 passed on 09.06.2017 wherein the AO has made an addition of Rs.25,64,526/- on account of fictitious losses booked in F&O segment by the appellant. However, while computing the tax on the total income, the AO has taken the total income of Rs.25,42,680/- instead of the total income of Rs.25,64,526/- as determined by him actually in the assessment order u/s 143(30 r.w.s. 147 of the I.T. Act. Therefore, the demand raised of Rs.13,46,160/- remains the same in the impugned order as well as in the order passed u/s 143(3) r.w.s. 147 of the I.T. Act”. ITA No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited 4 5. The ld. Counsel for the assessee reiterated his arguments as were raised before the ld. CIT(Appeals). He emphasized that ld. Assessing Officer has enhanced the income and, therefore, the 154 order ought to be quashed. On due consideration of the above facts and circumstances, we are of the view that ld. Assessing Officer has neither enhanced any income nor substantially changed anything. It is equivalent to a corrigendum vide which a typographical error crept in the order has been rectified. There is no error in the impugned order and, therefore, we do not find any merit in this appeal. It is dismissed. 6. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on 28 th February, 2023. Sd/- Sd/- (Manish Borad) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 28 th day of February, 2023 Copies to :(1) Narsingpore Tea Co. Pvt. Limited, Chatterjee International Centre, 16 th Floor, Room No 9, 33A, Jawaharlal Nehru Road, Kolkata-700071 (2) Deputy Commissioner of Income Tax, Circle-4(2), Kolkata, Aayakar Bhawan, 4 th Floor, P-7, Chowringhee Square, Kolkata-700069 ITA No. 418/KOL/2022 Assessment Year: 2009-2010 Narsingpore Tea Co. Pvt. Limited 5 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre(NFAC), Delhi; (4) Commissioner of Income Tax- , Kolkata; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.