FLP TRADING PVT LTD , MUMBAI V. THE ASSISTANT DIRECTOR OF INCOME TAX CENTRALIZED PROCESSING CENTRE , MUMBAI

ITA 924/MUM/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 5895 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-07-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 28-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HIMANSHU SHARMA

Judgement Text

| आयकर अपीलीय अिधकरण यपी , मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI RAHUL CHAUDHARY, HON’BLE JUDICIAL MEMBER I.T.A. No. 924/Mum/2024 Assessment Year: 2021-22 FLP Trading Pvt. Ltd. M/s. Kalyaniwalla & Mistry LLP Esplanade House, 2 nd Floor 29, Hazimal Somani Marg Fort, Mumbai - 400001 [PAN: AADCF3408R] Vs The Asstt. Director of Income Tax, Centralized Processing Centre, Bengaluru अपील / (Appellant) य / (Respondent) Assessee by : Ms. Sonali Godbole, A/R Revenue by : Shri Himanshu Sharma, CIT, D/R सुनवाई की तारीख/Date of Hearing : 04/07/2024 घोषणा की तारीख /Date of Pronouncement: 09/07/2024 आदेश/ O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the Addl/JCIT(A)-1, Chandigarh dt. 19/01/2024, pertaining to Assessment Year 2021-22. 2. The solitary grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs.2,19,075/- relating to liabilities written back. 3. Briefly stated, the facts of the case are that while processing the return of income, the CPC, Bengaluru, drawing support from the observations made by the auditor, made the addition of Rs.2,19,075/- relating to liabilities written back to the extent no longer required. I.T.A. No. 900/Mum/2024 Assessment Year: 2012-13 Pukhraj Jain HUF 2 4. Before the ld. CIT(A), the assessee strongly contended that, though the auditor has reported the issue at Clause 25(iii) of the report but the said amount has already been included in the net profits as disclosed in the profit and loss account. Though the ld. CIT(A) was convinced that the said addition has been made solely on the basis of remark of the auditor but could not find the bifurcation/details of the amount of Rs.10,89,643/- under the head “any other income” and, therefore, confirmed the addition. 5. Before us, the ld. Counsel for the assessee drew our attention to the profit and loss account and pointed out that the other income has been show at Rs. 2,44,73,599/- and the details of which are given in the schedule 21, which shows that this income includes other non- operating income of Rs.10,89,643/- which has been further bifurcated as under:- FLP Trading Pvt Ltd Assessment Year 2021-22 The statement giving details of other income – Note 21 of Audited Accounts Particulars Amount Amount Interest income on bank deposits 2,32,62,395 Interest on income tax refund 1,21,561 Other non operating income Scrap Sale 2,50,954 Net-Sundry Balance Written Off Income 2,19,075 Short/Excess Provision 1,81,930 Claimed Amount Written Back 1,70,875 Invoice Cancellation Charges 1,30,718 Unclaimed Amount Written Off 1,14,461 Shrot/Excess Cash Receipt 11,629 Duplicate Invoice Copy Charges 10,000 10,89,643 Total 2,44,73,599 I.T.A. No. 900/Mum/2024 Assessment Year: 2012-13 Pukhraj Jain HUF 3 6. The ld. Counsel for the assessee pointed out that Rs.2,19,075/- has been included in ‘other income’. 7. We have given a thoughtful consideration to the factual matrix explained and discussed hereinabove. We find force in the contention of the ld. Counsel for the assessee. Under Note -21 of audited accounts, the assessee has shown other income at Rs. 2,44,73,599/- and the details of other income are exhibited elsewhere which clearly shows that income of Rs.2,19,075/- is already included. Therefore, any other addition would tantamount to double addition and hence we direct the AO to delete the addition. 8. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 9 th July, 2024 at Mumbai. Sd/- Sd/- (RAHUL CHAUDHARY) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Kolkata, Dated 09/07/2024 *SC SrPs *SC SrPs*SC SrPs *SC SrPs I.T.A. No. 900/Mum/2024 Assessment Year: 2012-13 Pukhraj Jain HUF 4 आदेश की े /Copy of the Order forwarded to : 1. ी / The Appellant 2. / The Respondent 3. संबं ध आयकर आय ! / Concerned Pr. CIT 4. आयकर आय !) ी (/ The CIT(A)- 5. वभ गीय ध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. # $% फ ई/ Guard file. आदेश नुस र/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai