ACC LIMITED ,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, 3(4), MUMBAI
Income Tax Appellate Tribunal, Mumbai “A” Bench, Mumbai.
Before: Smt. Beena Pillai (JM) & Shri Omkareshwar Chidara (AM) ACC Limited 121 Cement House M.K. Road, Churchgate Mumbai-400 020. Vs. ACIT Central Circle-3(4) Aayakar Bhavan M.K. Road, Churchgate Mumbai-400 020. PAN : AAACT1507C
Per Omkareshwar Chidara (AM) :-
The only issue to be adjudicated in this appeal is whether the addition made by Ld. AO with respect to levy of interest under section 234D of the Income Tax Act provided for withdrawal of excess of refund while computing book profit under section 115JB of the Act when such amount was already disallowed while computing the book profit in original assessment order. The addition was made by Ld. AO in the present appeal, in consequence of Revision Order passed by Ld. PCIT under section 263 of the Act. The Ld.
CIT(A) has confirmed the addition by holding that the word “Income Tax” was defined in inclusive manner and the Income Tax will include “the interest charged under the Act”. The Ld. CIT(A) held that the Ld. AO has correctly added interest under section 234D to determine the correct Book Profit because the income tax calculated under the normal provisions remains higher than the provisions of computation under section 115JB of the Act.
Aggrieved by the addition, appellant company has filed this appeal before ITAT where Ld. AR of the appellant has submitted that the issue in question emanated from the order of Revision Order passed by Ld. PCIT and ACC Ltd.
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the order of Revision itself was quashed by ITAT and a copy of ITAT order was submitted before the Bench.
The Ld. DR relied on the orders of lower authorities.
Heard both sides. This order of ITAT in ITA No. 3576/Mum/2019 is perused and found that the ITAT has already taken a decision that the order under section 263 of the Act is not correct because the Ld. AO has already added the same amount in the assessment order and the appellant is in appeal before Ld. CIT(A). As there is no “error” and no prejudice was caused to the interest of Revenue, the ITAT held that the order under section 263 passed by Ld. PCIT is not valid. Hence, the Bench decides that the assessment order passed making addition now in consequence of Revision Order of Ld. PCIT is held as invalid.
The appeal of the appellant company is allowed.
The appeal of appellant is allowed for statistical purposes.
Order pronounced in the open Court on 25/11/2025. (BEENA PILLAI)
ACCOUNTANT MEMBER
Copy of the Order forwarded to :
The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
BY ORDER,
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