DCIT, Circle - 4(1), Kolkata, Kolkata V. Cheviot Agro Industries Pvt. Ltd., Kolkata

MA 14/KOL/2021

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The case involves Cheviot Agro Industries Pvt. Ltd., which is engaged in tea plantation and manufacturing, and the Deputy Commissioner of Income Tax, Circle-4(1), Kolkata. The revenue filed a miscellaneous petition claiming that a donation of Rs. 3,70,00,000 made by the assessee, which was debited in the profit and loss account, was not added back while computing the book profit under Section 115JB of the Income Tax Act in the original order. The Tribunal had to decide whether the omission constituted a patent mistake warranting a recall of the order. After reviewing the submissions and the relevant provisions, the Tribunal concluded that the original computation of book profit was correct and dismissed the revenue's application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127383 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 4 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 08-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 23-11-2022
• Assessment Year: 2013-2014
• Appeal Filed On: 22-03-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 115JB; 80G

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA ी संजय गग या यक सद य एवं ी राजेश क ु मार, लेखा सद य के सम [Before Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar, Accountant Member] M.A. No. 14/Kol/2021 (Arising out of ITA No. 2278/Kol/2017) Assessment Year: 2013-14 DCIT, Circle-4(1), Kolkata Vs. Cheviot Agro Industries Pvt. Ltd. (PAN: AABCC 0652 L) Appellant / (अपीलाथ ) Respondent / (!"यथ ) Date of Hearing / स ु नवाई क% त'थ 24.12.2022 Date of Pronouncement/ आदेश उ*घोषणा क% त'थ 09.08.2023 For the Appellant/ नधा 0रती क% ओर से Shri Manish Tiwari, FCA For the Respondent/ राज व क% ओर से Shri Vijay Kumar, Addl. CIT ORDER / आदेश Per Rajesh Kumar, AM: By virtue of this miscellaneous petition, the revenue seeks the recalling of the Order passed by the Co-ordinate Bench in ITA No. 2278/Kol/2017 for AY 2013-14 dated 25.9.2019 on the ground of being suffering from patent factual mistake. 2. After hearing the rival contentions and perusing the material on record, we find that the revenue has filed this miscellaneous petition on the ground that while computing the books profit u/s 115JB of the Act the amount of donation u/s 80G to the tune of Rs. 3,70,00,000/- has not been disallowed which were debited in the profit and loss account. We note that while computing profits under the normal provision of the Act the said amount of donation of Rs. 3,70,00,000/- was duly added back whereas the same was not done while computing book profit. This is a case of assessee who is 2 M.A. No.14/Kol/2021 (arising out of ITA No. 2278/Kol/2017) Assessment Year: 2013-14 Cheviot Agro Indsutries Pvt. Ltd. engaged in the plantation, growing and manufacturing tea in terms of Rule 8(1) of the ITAT Rules. The income is assessable at40% of the total income while remaining 60% is treated as agricultural income. Now the issue raised before us by the revenue is that in terms of explanation 1 to sub-section (2) of Section 115JB of the Act, there has to adjustment on account of different items and the Ld. D.R has made a submission before the Bench that donation u/s 80G of Rs. 3,70,00,000/- needs to be added back to the book profit in order to arrive at a correct amount of book profit for the purpose of assessing the income of the assessee in terms of Rule 8(1) of the ITAT, Rules and therefore the Ld. D.R prayed before the bench the order of Tribunal dated 25.09.2019 may be recalled. In our opinion, while arriving at the books profit u/s 115JB of the Act the amount of donation is not provided under Explanation 1 to sub-section (2) to Section 115JB of the Act and therefore the books profit has been correctly calculated. Therefore the order passed by the Tribunal dated 25.09.2019 cannot be said to be suffering from any patent mistake of fact or of law which render the order as suffering from the patent and apparent mistake making it amenable to be recalled u/s 254(2)of the Act. In view of this facts, we are inclined to dismiss the miscellaneous application of the revenue. 3. In the result, the miscellaneous application of the revenue is dismissed. Order is pronounced in the open court on 9 th August, 2023 Sd/- Sd/- (Sanjay Garg /संजय गग ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 9 th August, 2023 SB, Sr. PS 3 M.A. No.14/Kol/2021 (arising out of ITA No. 2278/Kol/2017) Assessment Year: 2013-14 Cheviot Agro Indsutries Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- DCIT, Circle-4(1), Kolkata 2. Respondent – Cheviot Agro Industries Pvt. Ltd., Magma House, 9 th Floor, Kolkata-700016 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata