ITC LIMITED,KOLKATA V. ACIT, RANGE-8, KOLKATA, KOLKATA

MA 28/KOL/2024

AI Insights

The case involves ITC Limited seeking rectification of an earlier Tribunal order concerning the assessment years 2010-11 and 2011-12. The Tribunal had initially made errors in referencing the correct sections of the Income Tax Act and in the description of the grounds related to deductions for captive power plants and industrial units set up in Haridwar and Manpura. The Departmental Representative acknowledged these mistakes, leading to the Tribunal's decision to rectify the order to ensure accurate legal references and correct the intermingling of the appeal grounds.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25416 (ITAT-KOLKATA)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Other Referred Cases: CIT VS. M/s Jindal Steel and Power Ltd Civil Appeal No. 13771 of 2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIP BISWAS
• Assessee Lawyers: BIKASH CHANDA; AAKASH AGARWAL; ARS
• Section: 80IA; 80IC; 80IC; 40a(ia)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI SONJOY SARMA, JM MA Nos. 28 & 29/KOL/2024 (Assessment Year:2010-11) ITC Limited 37, JL Nehru Road, Kolkata-700071 West Bengal Vs. ACIT, Range-8, P-7, Chowringhee Square, Aaykar Bhavan, Kolkata- 700069, West Bengal (Appellant) (Respondent) PAN No. AAACI5950L Assessee by : Shri Bikash Chanda & Shri Aakash Agarwal, ARs Revenue by : Shri Pradip Biswas, DR Date of hearing: 29.11.2024 Date of pronouncement : 23.01.2025 O R D E R Per Rajesh Kumar, AM: By virtue of these Miscellaneous Applications, the assessee seeks the rectification of the order passed by the Tribunal in ITA Nos. 1068 & 1222/Kol/2017 for A.Y. 2010-11 vide order dated 10.05.2024. MA No. 28/KOL/2024 02. The ld. AR submitted that while passing the order, certain factual inadvertent mistakes have occurred in Para 12 of the impugned order as section has wrongly been mentioned as 40a(ia) of the Act instead of 40(a)(i) of the Act. Therefore, the same may kindly be rectified. 03. Similarly ,the ld. AR further pointed out that certain mistakes have also occurred in Para no.63 to 66 of the said order. The ld. AR pointed out that in the Revenue’s appeal for A.Y. 2010-11, the Revenue has taken following two grounds namely “(i) Ground no.10, deduction against section 80IA in respect of the Petition’s captive power plants Page | 2 MA Nos. 28 & 29/KOL/2024 ITC Ltd; A.Y. 2010-11 and (ii) Ground No.11, deduction under section 80IC in respect of industrial unit set up by the Petitioner at Haridwar and Manpura.” However, the same were intermingled and therefore, required to be rectified accordingly. 04. The ld DR fairly agreed that these mistakes are there in the order passed by the tribunal so may be rectified as prayed by the ld AR. 05. After hearing the rival contentions and perusing the materials available on record, we find that there are certain mistakes as pointed out by the ld. AR before us in the miscellaneous application which needs to be rectified. Consequently, the following paras are substituted in the order passed by the Tribunal dated 10.05.2024. a. In place of para 12 the following para shall be substituted:- “12. Issue raised in ground no. 3 by the assessee is against the confirmation of addition of Rs. 2,60,15,928/- by Ld. CIT(A) as made by the AO u/s 40(a)(i) of the Act on payments made to foreign parties for various services rendered.” b. In place of para no.63 to 66 the following paras shall be substituted:- “63. Issue raised om ground no. 10 by the revenue is against the order of Ld. CIT(A) allowing deduction u/s 801A of the Act in respect of captive power plant. Now the issue of CCP has finally been settled by the Hon'ble Apex Court in the case of CIT VS. M/s Jindal Steel and Power Ltd Civil Appeal No. 13771 of 2015 and others vide order dated 06.12.2023. Accordingly, the issue is squarely covered favour of the assessee and the ground raised by the revenue is dismissed by upholding the order of the CIT(A). 64. Facts in brief in relation to Ground No.11 are that the assessee has claimed deduction of Rs.59,15,70,000/- u/s 80IC in respect of capital undertakings in its original return of income which was revised during the assessment proceedings to Rs.53,50,95,000/-. The AO disallowed the claim u/s 80IC of the Act by observing that the units in respect of which deduction had been claimed by the assessee were not separate undertakings and that the notional profit from such undertakings had not been included in the profit and loss account of the assessee. The Ld.CIT(A) allowed the appeal of the assessee by following the co- ordinate Bench of Kolkata Tribunal in the assessee's own case for AY 2007-08, 2008-09 and AY 2009-10 has decided the issue in favour of the assessee. Page | 3 MA Nos. 28 & 29/KOL/2024 ITC Ltd; A.Y. 2010-11 65. The Ld. CIT(A) allowed the appeal of the assessee by following the Coordinate Bench of Kolkata Tribunal in the assessee’s own case for AY 2007- 08, 2008- 09 and 2009-10 has decided the issue in favour of the assessee. 66. After hearing the rival contentions and perusing the material on record, we note that the issue has been settled in assessee’s own case for AY 2007-08 by the Hon’ble Calcutta High Court as well as by the Co-ordinate Bench in AY 2007-08, 2008-09 and 2009-10. Hence ground no.11 of the Revenue is dismissed. 06. Accordingly, the rectifications made in order in para 12, 63 to 66 would also apply to A.Y. 2011-12. 07. The order passed off in ITA Nos. 1068 & 1222/Kol/2017 for A.Y. 2010-11 & 2011-12 dated 10.05.2024, stood modified to this extent only. 08. In the result, both the Miscellaneous applications filed by the assessee are allowed. Order pronounced in the open court on 23.01.2025. Sd/- Sd/- (Sonjoy Sarma) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 23.01.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "