ITO WD-17(3) (1) , MUMBAI V. M/S. SUDERSHAN GEARS, MUMBAI

MA 325/MUM/2022

AI Insights

The case involves the Income Tax Department (Revenue) filing a Miscellaneous Application against M/s. Sudarshan Gears, seeking recall or rectification of an earlier Tribunal order that favored the assessee. The original dispute centered on an addition of Rs. 4,75,259 made by the CPC under section 36(1)(va) of the Income Tax Act during the processing of the assessee's return under section 143(1). The Tribunal had previously ruled that the CPC lacked jurisdiction to make such an addition for the assessment year 2018-19. The Revenue's application was based on a Supreme Court judgment in Checkmate Services Pvt. Ltd., which the Tribunal found not applicable to the issue at hand.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131976 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 02-02-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 30-10-2022
• Other Referred Cases: Checkmate Services Pvt. Ltd. (Civil Appeal No. 2833 of 2016)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SUNIL ADAVADE
• Section: 43B; 143(1)

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL “SMC” Bench, Mumbai Shri B.R. Baskaran (AM) M.A. No. 325/Mum/2022 in I.T.A. No. 1700/Mum/2021 (A.Y. 2018-19) ITO-17(3)(1) Room No. 127 1 st Floor, G-Block Kautilya Bhavan Bandra Kurla Complex Bandra East Mumbai-400 051. Vs. M/s. Sudarshan Gears 411, Maker Bhavan No.3 21, New Marine Lines Behind Income Tax Office, Churchgate Mumbai-400 020. PAN : AACFS4820Q (Appellant) (Respondent) Assessee by Shri Sunil Adavade Department by Ms. Mahita Nair Date of Hearing 03.02.2023 Date of Pronouncement 10.03.2023 O R D E R Per B.R.Baskaran (AM) :- The Revenue has filed this Miscellaneous Application seeking recall/rectification of the order dated 20.4.2022 passed by SMC Bench of the Tribunal in ITA No. 1700/Mum/2021. 2. I heard the parties and perused the record. The issue that was urged by the Tribunal related to the addition of Rs. 4,75,259/- made by the CPC under section 36(1)(va) of the Act while processing return of income filed by the assessee under section 143(1) of the Act. The Tribunal, vide its order dated 20.4.2022, has taken the view that the CPC has no jurisdiction to make above said addition/adjustment under section 143(1) of the Act during the assessment year 2018-19. Accordingly appeal filed by the assessee was allowed. M/s. Sudarshan Gears 2 3. The Revenue has filed this Miscellaneous Application stating that the decision so rendered by the Tribunal is contrary to the recent judgment rendered by Hon'ble Supreme Court in the case of M/s. Checkmate Services Pvt. Ltd. (Civil Appeal No. 2833 of 2016 dated 12.10.2022). Accordingly it is prayed by the Department that the order passed by the ITAT may be recalled/rectified. 4. I notice that the Tribunal has rendered its decision in the impugned order on the legal issue as to whether the CPC is empowered to make adjustment to the return of income by making addition under section 36(va) of the Act. The Tribunal has taken the view that the CPC does not have the power. In the case of Checkmate Services Pvt. Ltd. (supra) the above said issue was not raised before Hon'ble Supreme Court and hence there was no occasion for Hon'ble Supreme Court on addressing the above said legal issue. Hon'ble Supreme Court has rendered its decision on the applicability of section 36(1)(va) of the Act vis-à-vis section 43B of the Act. As such the above said Hon'ble Supreme Court decision cannot be invoked in the present case. Accordingly I do not find any merit in the Miscellaneous Application filed by the Revenue. Accordingly I dismiss the Miscellaneous Application filed by the Revenue. 5. In the result, Miscellaneous Application filed by the Revenue is dismissed. Order pronounced in the open court on 10.03.2023. Sd/- (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai; Dated : 10/03/2023 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT M/s. Sudarshan Gears 3 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) PS ITAT, Mumbai