KC OVERSEAS PRIVATE LIMITED,CHANDIAGRH V. INCOME TAX OFFICER, AAYAKAR BHAWAN PANCHKULA

ITA 517/CHANDI/2025

AI Insights

The case involves K C Overseas Pvt. Limited, the appellant, contesting the order of the Ld. Addl. / Joint Commissioner of Income Tax (Appeals)-6, Mumbai, which upheld several disallowances and additions made to the Assessee's income for the assessment year 2024-25. The primary contention was regarding the incorrect addition of income tax paid by the Assessee to its income, which was not claimed as an expense in the return. The Tribunal found merit in the Assessee's argument that the income tax expenses were inadvertently reported as expenses in the Audit Report but were not claimed in the return. Consequently, the matter was remitted back to the Assessing Officer for verification.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836530 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2024-2025
• Appeal Filed On: 08-04-2025
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: T.N. SINGLA

Judgement Text

" आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “A” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE BEFORE: SHRI. LALIET KUMAR, JM & SHRI. KRINWANT SAHAY, AM आयकर अपील सं./ ITA No. 517/Chd/ 2025 िनधाŊरण वषŊ / Assessment Year : 2024-25 K C Overseas Pvt. Limited. SCO 80-81, 3rd Floor, Sector 17-C, Chandigarh बनाम The ITO, Ward 3, Panchkula ˕ायी लेखा सं./PAN NO: AAHCK9990R अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Sh. T. N. Singla, CA राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr.DR सुनवाई की तारीख/Date of Hearing : 10.02.2026 उदघोषणा की तारीख/Date of Pronouncement : 13. 02.2026 आदेश/Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order of the Ld. Addl. / Joint Commissioner of Income Tax (Appeals)-6, Mumbai dt. 30.3.2025 for assessment year 2024-25. 2. The Assessee has raised following grounds of appeal: 1. That the order passed by the Id. JCIT (A) is bad and against the provisions of law and facts. Printed from counselvise.com 2 517/Chd/2025 2. That the Ld. JCIT (A) has wrongly upheld the high pitched assessment without verifying the details submitted during the appellate proceedings 3. That the Ld. JCIT (A) wrongly upheld the disallowance of the Income Tax paid amounting to Rs.49,00,216/-which was never claimed as expense by the appellant in its return of income. 4. That the Id. JCIT (A) has wrongly upheld the disallowance on account of Expense of \"Interest on Income Tax\" amounting to Rs.29,811/-again, which was already disallowed in the return. 5. That the Ld. JCIT (A) has wrongly upheld the addition of Rs.49,30,030/-on account of inconsistency in expenditure disallowed in the ITR and Form 3CA-CD without verifying the details submitted during appellate proceedings. 3. The ld. AR, at the outset submitted that the CPC had made the adjustment / addition of income tax paid by the Assessee to the income of the Assessee even though it was not claimed as expenditure by the Assessee in the computation of income. For those purposes, he has drawn our attention to page 3 of the paper book. Further, it was submitted that in the profit and loss account the tax expenses forming part of the balance sheet has not been factored in while determining the profit and loss of the Assessee. The ld. AR has submitted that in the Audit Reprot, inadvertently it has been reported by the Auditor had mentioned that the amount of Rs. 49,00,216/- pertains to the Printed from counselvise.com 3 517/Chd/2025 expenses of the income tax even though it was not claimed by the Assessee. Despite that the lower authorities had made the addition of the income tax expenses to the income of the Assessee. It was subtitled by the ld. AR that the matter may be remitted back to the file of the Assessing Officer for verification i.e. whether the Assessee had claimed expenses towards income tax in the return of income or not. 4. The ld. DR had no objection if the matter is sent to the file of the Assessing Officer for verification. 5. In the light of the above, the matter is remitted back to the file of the Assessing Officer with a direction to verify as to whether the Assessee has claimed the expense of income tax in the return of income or not while computing the profit and loss of the Assessee or not. This exercise shall be carried out by AO after following the due process of law and offering the opportunity of hearing to the Assessee. If the Assessing Officer on verification found that the Assessee has not claimed the expenses as deduction towards the payment of income tax in the return of income while computing the profit and loss account, then the addition made in the hands of the Assessee to the extent of the amount shall be deleted by the Assessing Officer. Printed from counselvise.com 4 517/Chd/2025 6. With the above directions, the appeal of the Assessee is allowed for statistical purposes. Order Pronounced in the open Court on 13. 02.2026. SD/- SD/- (KRINWANT SAHAY) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER rkk आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 5. गाडŊ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "