THE DCIT CIRCLE-1(1)(1), VADODARA V. DAKSHIN GUJARAT VIJ COMPANY LTD., VADODARA

MA 78/AHD/2023

AI Insights

The case involves the Deputy Commissioner of Income Tax (DCIT), Circle-1(1)(1), Vadodara as the appellant and Dakshin Gujarat Vij Company Ltd. as the respondent. The Revenue filed Miscellaneous Applications against the common order dated 17-02-2023 passed by the Income Tax Appellate Tribunal (ITAT) in appeals for the Assessment Years 2013-14 to 2015-16. The applications were filed with a delay of 5 days, which the Revenue justified due to the Assessing Officer's training and additional charges. The ITAT considered the delay and allowed the applications for adjudication. The main issues pertained to the non-adjudication of prior period income and the handling of prior period expenses in the computation of book profit under section 115JB of the IT Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23281 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Other Referred Cases: Pacific Projects Ltd. Vs. ACIT, ITA No. 618/Ahd/2018, ITA No. 568 to 570/Ahd/2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Period of limitation; Time period of passing order
• Section: 115JB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member The DCIT, Circle-1(1)(1), Vadodara (Appellant) Vs Dakshin Gujarat Vij Company Ltd. Sardar Patel Vidhyut Bhavan, Race Course, Vadodara, Gujarat-390002 PAN No. AABCD8912C (Respondent) Revenue Represented : Shri Kavan Limbasiya, Sr. D.R. Assessee Represented : Shri Mehul K. Patel Patel, Advocate Date of hearing : 24-01-2025 Date of pronouncement : 30-01-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These Miscellaneous Applications are filed by the Revenue as against the common order dated 17-02-2023 passed by this Tribunal in the Revenue appeal in ITA Nos. 568 to 570/Ahd/2023 for the Assessment Years 2013-14 to 2015-16. 2. This M.A. is filed by the Revenue with a delay of 5 days. At the outset, the assessee raised the maintainability of these M.As. filed after the period of six months of the order. M.A. Nos: 78 to 80/Ahd/2023 (in ITA Nos: 568 to 570/Ahd/2020) Assessment Years: 2013-14 to 2015-16) M.A. Nos. 78 to 80/Ahd/2023 A.Ys. 2013-14 to 2015-16 Page No DCIT Vs. Dakshin Gujarat Vij Company Ltd. 2 2.1. The Revenue in its Affidavit explained that the Common order passed by this Bench on 17-02-2023 which was said to be received by the Ld. PCIT on 10-04-2023 and he authorized the Assessing Officer vide Memo dated 08-08-2023 to file Miscellaneous Applications. However the Assessing Officer was attending training during the period from 17-07-2023 to 01-09-2023 and rejoined duty on 04-09-2023 (Monday) and filed M.A. on 06-09-2023. Further the Assessing Officer was holding three additional charges, thereby the delay in filing the above M.As. and requested to condone the same. 3. We have considered the above Affidavit and perused the materials available on record, the Delhi High Court in the case of Pacific Projects Ltd. Vs. ACIT reported in [2021] 125 taxmann.com 94 held that limitation period would not start from date on which order was pronounced by Tribunal and it would start from point when said order came in knowledge of assessee. Thus applying the above ratio, there is no delay in filing the M.As. by the Revenue. Hence M.As. are taken on record for adjudication. 4. The Grounds of Miscellaneous Application filed by the Revenue are as follows: 2. It is seen that the following errors crept in the appellate order of the Hon'ble ITAT: (i) Vide order dated 17.02.2023 The Hon'ble ITAT had not adjudicated the issue of addition of prior period income under the normal provision of the IT Act as raised vide Ground No.2 of Revenue appeal in ITA No. 568/Ahd/2020. M.A. Nos. 78 to 80/Ahd/2023 A.Ys. 2013-14 to 2015-16 Page No DCIT Vs. Dakshin Gujarat Vij Company Ltd. 3 (ii) The Revenue's Ground on of addition/adjustment of Rs.98,05,000/- made to the Book profit computed u/s. 115JB of the IT Act on account of Prior period expenses the Hon'ble ITAT has allowed for statistical purposes and setting aside the same to the file of assessing officer holding that this ground was set aside by the Co-ordinate Bench in assessee's own case in ITA No. 618/Ahd/2018 for the Assessment Year 2011-12 vide common order dated 22.07.2022 whereas the issue was not at all raised in appeal before the Hon'ble ITAT in assessee's case for A.Y 2011-12. 5. We have heard rival parties and perused the materials available on record. In Para No. 29 of the common order instead of ‘prior period income’ the words ‘prior period expenditure’ was mentioned, thereby in Paragraph Nos. 29.1 and 29.2, we dismissed the Revenue ground. Whereas in Paragraph No. 10 of this order assessee’s ground namely ‘prior period expenses’ was set aside back to the file of Assessing Officer for fresh consideration by giving proper opportunity of hearing to the assessee. Following the same, Ground No. 2 filed by the Revenue is hereby set aside to the file of A.O. for verification and allowed for statistical purpose. 6. The second issue Book Profit u/s. 115JB and on account of prior period expenses, the Revenue is not pressing this ground. Recording the same, this ground raised by the Revenue in this M.As. are hereby dismissed as withdrawn. 7. In the result, Miscellaneous Applications filed by the Revenue are partly allowed. Order pronounced in the open court on 30-01-2025 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER M.A. Nos. 78 to 80/Ahd/2023 A.Ys. 2013-14 to 2015-16 Page No DCIT Vs. Dakshin Gujarat Vij Company Ltd. 4 Ahmedabad : Dated 30/01/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, TRUE COPY सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "