KSPS CFS PARK PVT. LTD.,TUTICORIN V. ITO, WARD-1, TIRUNELVELI

ITA 2373/CHNY/2025

AI Insights

The case involves KSPS CFS Park Pvt. Ltd., a private limited company engaged in operating a customs authorized container freight station, which appealed against the order of the Commissioner of Income Tax (Appeals) regarding an adjustment made to their book profits for the Assessment Year 2018-19. The company initially reported an income under section 115JB of the Income Tax Act, 1961, and later adjusted a provision for taxation which was inadvertently reported as a provision for unascertained liability. The Income Tax Department made an adjustment of Rs. 29,50,000 to the book profits, which the assessee contested as a double addition. The CIT(A) dismissed the appeal, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 845997 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chennai
• Assessment Year: 2018-2019
• Appeal Filed On: 28-08-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BALAMIRTHA
• Assessee Lawyers: A. CHAKRAVARTHY; C.A
• Section: 143(3); 154; 115JB

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI सु\u0017ी पदमा वती यस, लेखा सद एवं \u0017ी मनु क ुमा र िग!र, ा ियक सद क े सम\" BEFORE MS. PADMAVATHY.S, ACCOUNTANT MEMBER AND SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकर अपील सं./ITA No.2373/Chny/2025 िनधा #रण वष# /Assessment Year: 2018-19 KSPS CFS Park Pvt. Ltd., 3/18, B/1, Sipcot Complex, Madurai Byepass Road, Milavittan RS, Tuticorin – 628 002. PAN: AABCK 3019M Vs. The Income Tax Officer, Ward-1, Tirunelveli. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ& की ओर से/ Appellant by : Mr. A. Chakravarthy, C.A ()थ& की ओर से /Respondent by : Ms. Balamirtha, JCIT सुनवा ई की ता रीख/Date of Hearing : 24.03.2026 घोषणा की ता रीख /Date of Pronouncement : 25.03.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals), Addl./JCIT(A)-1, Panchkula (in short \"FAA\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 23.06.2025 for Assessment Year (AY) 2018-19. 2. The assessee is a private limited company engaged in the business of operating customs authorized container freight station. For AY 2018-19, the assessee filed the return of income on 16.10.2018 reporting an income of Printed from counselvise.com ITA No.2373/Chny/2025 KSPS CFS Park Pvt. Ltd. :- 2 -: Rs.1,18,01,671/- under the provisions of section 115JB of the Act. The return was processed u/s. 143(3) of the Act, wherein an adjustment of Rs.29,50,000/- was made to the book profits computed by the assessee towards provision for taxation. The assessee filed a petition for rectification stating that the said amount is already adjusted by the assessee for the purpose of MAT computation under the head provisions of unascertained liability and the adjustment made under section 143(1) of the Act would amount to double addition. However, the said rectification petition was rejected and the order was passed without any correction. Aggrieved, the assessee filed further appeal before the CIT(A). The CIT(A) dismissed the appeal stating that no addition or any change qua the assessed income of the assessee in the order u/s. 154 of the Act and therefore, the grounds raised by the assessee are dismissed. 3. We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee while filing the return of income has inadvertently reported the provision for taxation as a provision for unascertained liability (page 68 of original return) due to which the said amount is adjusted once again by the CPC without considering fact that the provision for taxation has already been adjusted by the assessee. The Ld. AR further submitted that the assessee filed the petition u/s. 154 of the Act along with the return correcting the inadvertent error. The Ld. AR also submitted that the CPC without considering the corrected return rejected the petition filed u/s. 154 of the Act assessing same income as was done in the intimation u/s.154 of the Act. We notice from the order of CIT(A) that the ground for dismissing the appeal is that there is no change to the assessed income in the order u/s. 154 of the Act. We further Printed from counselvise.com ITA No.2373/Chny/2025 KSPS CFS Park Pvt. Ltd. :- 3 -: notice that the CIT(A) has placed reliance on the decisions of the coordinate bench in this regard. We notice that the case laws pertain to whether the issue raised in petition for rectification would fall within the purview of section 154 against which the appeal was preferred by the assessee before the first appellate authority (ITA No.584/Chny/2024). We further notice that the other case law relied is with regard to appeal against order u/s.143(3) where the adjustment made in the intimation u/s.143(1) of the Act was contested. Therefore, we are of the considered view that the reliance placed by the CIT(A) on the case law are distinguishable to the extent that the ratio laid down in those decisions are not with regard to whether order u/s. 154 of the Act is appealable if there is no change to the assessed income. Accordingly, we hold that the CIT(A) are not correct dismissing the appeal on the said ground. Having held so, we notice that the claim of the assessee with regard to double adjustment due to inadvertent disclosure in the return of income has not been considered by the lower authorities and we are of the view that the claim of the assessee needs factual verification. Therefore, we remit the appeal back to the Jurisdictional Assessing Officer (JAO) to examine the contention of the assessee that the addition is arising out of inadvertent reporting of provision for taxation in the return of income which the assessee attempted to rectify through petition u/s. 154 of the Act. The assessee is directed to file the necessary in this regard before the JAO and cooperate with appellate proceedings. It is ordered accordingly. Printed from counselvise.com ITA No.2373/Chny/2025 KSPS CFS Park Pvt. Ltd. :- 4 -: 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of March, 2026 at Chennai. Sd/- Sd/- (मनु क ुमा र िग!र) (Manu Kumar Giri) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 25th March, 2026. EDN, Sr. P.S आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com EJTADA DURGA NARESH Digitally signed by EJTADA DURGA NARESH Date: 2026.03.27 12:46:54 +05'30' "