M/S. GODREJ & BOYCE MFG. CO. LTD,MUMBAI V. DCIT CIRCLE 14(1)(2), MUMBAI

ITA 6274/MUM/2024

AI Insights

The case involves M/s. Godrej & Boyce Mfg. Co. Ltd. appealing against the order of the CIT(A) which confirmed the disallowance of employees' contributions to ESIC and LWF amounting to Rs.11,84,822, and an addition of Rs.5,49,72,039 relating to liabilities no longer required written back under section 41 of the Income Tax Act. The Tribunal dismissed the first ground based on the precedent set by the Supreme Court in Checkmate Services P. Ltd. & Ors. vs. CIT & Ors. The second ground was restored to the AO for verification of the proper inclusion of the written back amount in the assessee's income.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35504 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2021-2022
• Other Referred Cases: Checkmate Services P. Ltd. & Ors. vs. CIT & Ors. (2022) 448 ITR 518 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BHANGEPATIL PUSHKARAJ RAMESH; DR
• Assessee Lawyers: MS. SONALI GODBOLE; AR
• Keywords: Opportunity of being heard

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 6274Mum/2024 Assessment Years: 2021-22 M/s. Godrej & Boyce Mfg. Co. Ltd. M/s. Kalyaniwalla & Mistry LLP Espalande House, 2nd Floor 29, Hazarimal Somani Marg Fort Mumbai - 400001 [PAN: AAACG1395D] Vs The Asstt. Director of Income Tax/ Deputy Commissioner of Income tax, Circle -14(1)(2) अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : M/s. Sonali Godbole, A/R Revenue by : Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R सुनवाई की तारीख/Date of Hearing : 30/01/2025 घोषणा की तारीख /Date of Pronouncement: 30/01/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. Addl./JCIT(A)-6, Kolkata, [hereinafter ‘the ld. CIT(A)’] dated 07/10/2024, pertaining to AY 2021-22. 2. The grievance of the assessee reads as under:- “1.0. CPC erred in disallowing and CIT(A) erred in confirming the disallowance of employees' contribution to ESIC and LWF amounting to Rs.11,84,822/- under section 36(1)(va) of the Act. 2.0. CPC erred in making addition under section 41 of the Act and CIT (A) erred confirming the said addition of Rs.5,49,72,039/- relating to liabilities no longer required written back despite the fact that the said amount is already credited to the profit and loss account and included in total income and offered for tax while computing the total income.” I.T.A. No. 6274Mum/2024 2 3. The issue raised vide Ground No. 1, is no more res integra as the said quarrel has been settled by the Hon’ble Supreme Court in the case of Checkmate Services P. Ltd. & Ors. vs. CIT & Ors. (2022) 448 ITR 518 (SC). Respectfully following the decision of the Hon’ble Supreme Court, Ground No. 1 is dismissed. 4. Coming to Ground No. 2, the ld. Counsel for the assessee drew our attention to the documents exhibited in the paper book provision written back of Rs.5,43,40,678/- and Rs.6,31,361/- forfeitures, have already been included in the profit of the assessee, therefore, the action of the CPC by making addition of Rs.5,49,72,039/- amounts to double addition of the same income. The ld. Counsel further drew our attention to the statement of the profit and loss account vis-à-vis the respective amounts in the balance sheet to show that the income has already been included in the profit of the assessee. 5. We have given a thoughtful consideration to the submissions made by the ld. Counsel. We are of the considered view that this needs further verification by the AO to satisfy that the amount written back has been already shown as income. Therefore, in the interest of justice and fair play, we restore this issue to the file of the AO. The assessee is directed to demonstrate writeback provisions and forfeitures have already been included in the statement of total income. The AO is directed to verify the same and decide the issue after affording reasonable and adequate opportunity of being heard to the assessee. I.T.A. No. 6274Mum/2024 3 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 30th January, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 30/01/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "