M/S. BIJNI DOOARS TEA COMPANY LIMITED,KOLKATA V. ACIT, CIRCLE 4(1), KOLKATA

ITA 2866/KOL/2025

AI Insights

The case involves M/s Bijni Dooars Tea Company Limited appealing against the orders of the Commissioner of Income-tax (Appeals)-10, Mumbai, which upheld the Assessing Officer's decision. The primary issue was the incorrect computation of book profit under section 115JB of the Income Tax Act, due to the non-consideration of a deferred tax credit amounting to 23,26,863 for AY 2016-17 and 11,27,426 for AY 2017-18. The Tribunal found that both the Assessing Officer and the CIT(A) had erred in their calculations, leading to an excess assessment of book profit.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838997 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 28-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D HEERAJ
• Assessee Lawyers: S. K. TULSIYAN; MITA RIZVI; ARS
• Keywords: Set aside
• Section: 143(3); 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA Nos. 2865 & 2866/KOL/2025 (Assessment Years: 2016-17 & 2017-18) M/s Bijni Dooars Tea Company Limited Fourth Floor, Shantiniketan, 8, Camac Street, Kolkata-700017, West Bengal Vs. ACIT, Circle 4(1) Aaykar Bhawan, P-7, Chowringhee Square, Kolkata- 700069, West Bengal (Appellant) (Respondent) PAN No. AABCB1013E Assessee by : Shri S.K. Tulsiyan & Ms. Mita Rizvi, ARs Revenue by : Shri Dheeraj, DR Date of hearing: 10.02.2026 Date of pronouncement: 17.02.2026 O R D E R Per Rajesh Kumar, AM: These are appeals preferred by the assessee against the orders of the Commissioner of Income-tax (Appeals)-10, Mumbai (hereinafter referred to as the “Ld. CIT(A)”] even dated 29.09.2025 for the AYs 2016-17 & 2017-18 respectively. ITA No. 2865/KOL/2025 2. The only issue raised by the assessee in the various grounds of appeal is against the order of ld. CIT (A) upholding the order passed by the AO wherein the AO failed to appreciate the effect of deferred tax credit of ₹ 23,26,863/- in the computation of book profit u/s 115JB of the Act resulting to excess book profit by ₹. 23 ,26,863/- . Printed from counselvise.com Page | 2 ITA Nos. 2865 & 2866/KOL/2025 M/s Bijni Dooars Tea Company Limited; A.Ys. 2016-17 & 2017-18 3. The facts in brief are that the assessee filed the return of income on 30.09.2016, declaring total income at ₹76,33,160/- and book profit u/s 115JB of the Act at ₹1,15,26,057/-. The return was processed u/s 143(1) of the Act on 13.02.2018. Thereafter, the case of the assessee was selected for scrutiny and assessment u/s 143(3) of the Act was completed vide order dated 14.12.2018, after making disallowance of ₹14A of the Act. In the computation sheet of the assessment order the deemed total income u/s 115JB of the Act was taken at ₹1,38,52,920/- as against the booked profit of ₹1,15,26,057/-, declared by the assessee in the return of income there by taking the excess book profit by ₹23,26,863/-. 4. The ld. CIT (A) also dismissed the appeal of the assessee. 5. After hearing the rival contentions and perusing the materials available on record, we find that the ld. AO while passing the order u/s 143(3) of the Act dated 14.12.2018, has wrongly taken the book profit at ₹1,38,52,920/- as against the correct book profit of ₹1,15,26,097/-. We note that the assessee has credited to the profit and loss account the deferred tax credit of ₹23,26,863/-, which was reduced to arrive at correct figure of the book profit u/s 115JB of the Act in terms of Section 115JB(1) Explanation 1(vii) of Act. Therefore, the order passed by the ld. AO is apparently wrong so far as the book profit is concerned and so is the appellate order by the ld. CIT (A). Consequently, we set aside the order of ld. CIT (A) and direct the ld. JAO to take the book profit at ₹1,15,26,057/-. The appeal of the assessee is allowed. ITA No. 2866/KOL/2025 6. The issue raised in this appeal is similar to one as decided by us in Ita No.2864/KOL/2025 (supra). Accordingly, our decision would, mutatis Printed from counselvise.com Page | 3 ITA Nos. 2865 & 2866/KOL/2025 M/s Bijni Dooars Tea Company Limited; A.Ys. 2016-17 & 2017-18 mutandis, apply to this appeal of assessee in ITA No.2866/KOL/2025. Consequently, we set aside the order of ld. CIT (A) and direct the ld. AO to take the book profit at ₹82,89,375/-. Pertinent to note that in this case the deferred tax credited in the profit and loss account was ₹11,27,426/-, which was not taken into account by the ld. AO /CPC u/s 143(1) of the Act dated 02.02.2019, and when the case was selected for scrutiny u/s 143(3) of the Act the order was passed vide order dated 14.03.2019, the same mistake happened repeated. Therefore, we set aside the order of CIT(A) and direct the JAO to take the book profit at ₹82,28,375/-. The appeal of the assessee is allowed. 7. In the result, both the appeals of the assessee are allowed. Order pronounced in the open court on 17.02.2026. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.02.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "