LANDIS + GYR LIMITED,KOLKATA V. DCIT, CIR. 1(1), KOLKATA

ITA 573/KOL/2024

AI Insights

Landis + Gyr Limited appealed against the order of the Commissioner of Income-tax (Appeals), Coimbatore, which confirmed the reduction in the current year loss eligible to be carried forward by \\u20b93,09,80,426/-. This reduction was initially made by the CPC, Bangalore, during the processing of the assessee's return under section 143(1) of the Income Tax Act. The Tribunal found that the CPC had misunderstood the tax auditor's report, leading to an incorrect adjustment. The Tribunal set aside the CIT(A)'s order and allowed the appeal, directing the deletion of the adjustment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473860 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJA SENGUPTA
• Assessee Lawyers: RAHUL SHAH; POOJA SARAF
• Keywords: Set aside
• Section: 143(1); 28

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI SONJOY SARMA, JM ITA No.573/KOL/2024 (Assessment Year:2022-23) Landis +Gyr Limited Unit-710 Floor, Aurora Waterfront, GN-34/1, Opposite Nalban Food Park, Sector V, Salt Lake, Bidhannagar-700091, West Bengal Vs. DCIT, Cir.1(1) Aaykar Bhavan, P-7, Chowringhee Square, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AAACV9922B Assessee by : Shri Rahul Shah & Ms. Pooja Saraf, AR Revenue by : Shri Raja Sengupta, DR Date of hearing: 30.01.2025 Date of pronouncement : 04.03.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Coimbatore (hereinafter referred to as the “Ld. CIT(A)”] dated 23.01.2024 for the AY 2022-23. 02. The only issue raised in the various grounds of appeal is against the order of ld. CIT (A) confirming the reduction in the current year loss eligible to be carried forward of ₹3,09,80,426/-, thereby confirming the addition made in the intimation passed u/s 143(1) of the Act by CPC, Bangalore. Page | 2 ITA No.573/KO/2024 Landis + GYR Limited; A.Y. 2022-23 03. The facts in brief are that the assessee filed the return of income on 29.12.2022 by declaring total income at ₹nil, however, claimed the loss to be carry forward at ₹20,95,41,402/-. The said return was processed u/s 143(1) of the Act vide order dated 23.01.2023 in which the said losses were reduced to ₹17,85,60,976/-, thereby the claim of the assessee was reduced by ₹3,09,80,426/-. 04. Aggrieved assessee preferred the appeal before the ld. CIT (A) and ld. CIT (A) dismissed the appeal of the assessee by noting in para 5.5 that assessee had the opportunity to correct the mistake in form no.3CD, however, the same was not done and the adjustment was made by the system and software-based CPC upon mismatch of ITR and form no.3CD. According to the ld. CIT (A) the auditors of the assessee have clarified that ₹5,74,70,370/- was a item falling u/s 28 of the Act and thus, noted that the auditors report was wrong. The ld. CIT (A) however clarified as to how the amount of ₹3,09,80,426/- was arrived at by CPC Bangalore. The ld. CIT (A) in Para no.5.10 noted that the assessee while filing the return of income reported under item no.23 “any other item of addition u/s 28 to 44DB” at ₹2,64,89,944/- which was allowed to be set off against the said GST adjustment of ₹5,74,70,370 and only net adjustment of ₹3,09,80,426/- was made to the losses to be carried forward. The ld. CIT (A) thus, held that the addition/ adjustment by CPC is factual and legally correct and thus, dismissed the appeal of the assessee. 05. After hearing the rival contentions and perusing the materials available on record, we find that the assessee has shown ₹5,74,70,370/- as refund of value added tax which was admitted by the authority concerned. In the tax auditors report in Para no.16a, the same was duly reported. Noteworthy to state that Para 16a, stated Page | 3 ITA No.573/KO/2024 Landis + GYR Limited; A.Y. 2022-23 that the amount falling within the scope of Section 28 was ₹ Nil. We also note that at page no.26, the assessee has stated that the goods and service tax was not rooted through the profit and loss account. Considering these facts, we find merit in the contention of the ld. AR that the information furnished by the assessee in the tax report in Para no.16b qua the refund of GST admitted by the authority concerned has been mistook and misunderstood by the CPC, Bangalore to be item falling under Para 16a which is qua the item falling within the scope of 28 of the Act. Since, this is a factual mistake committed by the CPC, Bangalore at the time of processing which the ld. CIT (A) failed to appreciate and rectify during the appellate proceedings. In our opinion, the order passed by the ld. CIT (A) is incorrect and accordingly, set aside order and the AO is directed to delete the adjustment made by the ld. AO to the tune of ₹3,09,80,426/-. The appeal of the assessee is allowed. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04.03.2025. Sd/- Sd/- (SONJOY SARMA) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated:04.03.2025 Sudip Sarkar, Sr.PS Page | 4 ITA No.573/KO/2024 Landis + GYR Limited; A.Y. 2022-23 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 "