M/S. BANGALORE ELECTRICITY SUPPLY COMPANY LTD.,BANGALORE V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), BANGALORE

MA 54/BANG/2025

AI Insights

The case involves a Miscellaneous Application filed by BESCOM concerning the ambiguity in the Income Tax Appellate Tribunal's earlier order, which led to confusion about the deletion of an addition of Rs.83.59 crores in both normal income computation and under section 115JB of the Income Tax Act. The Tribunal had previously allowed the deletion but mentioned it 'subject to above direction', which BESCOM argued caused ambiguity, especially after penalty orders were passed. The Departmental Representative contended that the application was misplaced. The Tribunal, after considering the arguments, clarified that the deletion applies to both computations but dismissed the application as it did not point out any error in the original order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772938 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 04-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER MP No.54/Bang/2025 [in ITA No. 426/Bang/2023] Assessment year : 2017-18 Bangalore Electricity Supply Company Ltd., BESCOM Corporate Office, Block A, K R Circle, Bangalore – 560 001. PAN: AACCB 1412G Vs. The Assistant Commissioner of Income Tax, Circle 1(1)(2), Bangalore. APPLICANT RESPONDENT Applicant by : Shri S. Annamalai, Advocate. Revenue by : Shri N. Balusamy, Jt.CIT(DR)(ITAT), Bengaluru. Date of hearing : 19.09.2025 Date of Pronouncement : 22.09.2025 O R D E R Per Prashant Maharishi, Vice President 1. This Miscellaneous Application is filed by the assessee in ITA No.426/Bang/2023 for AY 2017-18 stating that in para 51 to 56 of the Printed from counselvise.com MP No.54/Bang/2025 Page 2 of 3 order, the coordinate Bench has allowed ground Nos. 18 to 25 wherein it is mentioned that those are allowed 'with the above direction', which may lead to some ambiguity with respect to the addition of Rs.83.59 crores deleted by the coordinate Bench while making the normal computation of the assessee. An identical addition was also made in the computing the book profit u/s. 115JB of the Act which was also specifically directed to be deleted. However, the coordinate Bench has mentioned subject to above direction, which has caused some ambiguity. It was further submitted that penalty orders have also been passed and therefore the Tribunal is prayed for deletion of the last line of para 56, to the extent of “with above directions”. 2. The ld. AR vehemently reiterated the contents stated in para 7 to 10 of the miscellaneous application. 3. The ld. DR stated that the miscellaneous application is misplaced. 4. We have carefully considered the rival contentions and perused the order of the coordinate Bench and find that this miscellaneous application is preferred stating that there are certain apprehensions that when the addition of Rs.83.59 crores have been deleted in the normal computation of income, the addition of the same amount while computing the book profit u/s. 115JB of the Act may not be deleted. We find that the miscellaneous application filed by the assessee is merely an apprehension and not on any error in the appellate order. 5. However, as the penalty has already been levied on the assessee on the above issue, we make the issue clear that the addition of Rs.83.59 crores Printed from counselvise.com MP No.54/Bang/2025 Page 3 of 3 deleted in the normal computation also stands deleted with respect to the addition made u/s. 115JB of the Act. The ld. AO is directed not to make such addition to the book profit while passing Order Giving Effect. 6. As the Miscellaneous Application has not pointed out any error in the order of the coordinate Bench, the same stands dismissed. Pronounced in the open court on this 22nd day of September, 2025. Sd/- Sd/- ( KESHAV DUBEY ) ( PRASHANT MAHARISHI ) JUDICIAL MEMBER VICE PRESIDENT Bangalore, Dated, the 22nd September, 2025. /Desai S Murthy / Copy to: 1. Applicant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. Printed from counselvise.com "