G K WINDING WIRES LIMITED,NEW DELHI vs. ADDITIONAL COMMISSIONER OF INCOME TAX (OSD), DELHI

ITA 410/DEL/2026Status: DisposedITAT Delhi14 July 2026AY 2018-195 pages

AI SummaryRemanded

What did the Tribunal hold?

The ITAT noted that the CIT(A) had not adjudicated the grounds on merits and dismissed the appeal as withdrawn. Considering the factual contentions and the need for verification, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for fresh adjudication.

What were the facts?

The assessee's return was selected for limited scrutiny regarding personal expenditure. The Assessing Officer made an addition for the difference in depreciation as per Companies Act and Income-tax Act, and disallowance for employees' PF contribution. The assessee contended the depreciation difference was an inadvertent error in the tax audit report, which was later corrected.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal as withdrawn without adjudicating on merits, and whether the addition on account of depreciation difference, based on a corrected tax audit report, requires fresh verification by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘C’, NEW DELHI

Before: Sh. S. Rifaur Rahman & Sh. Raj Kumar Chauhan

Hearing: 14.07.2026Pronounced: 14.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI Before Sh. S. Rifaur Rahman, Accountant Member & Sh. Raj Kumar Chauhan, Judicial Member ITA No. 410/Del/2026 : Asstt. Year: 2018-19 G K Winding Wires Ltd., Vs Addl. CIT(OSD), 23, Radhey Puri, Krishna Nagar, C. R. Building, New Delhi-110051 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AAACG0177D Assessee by: Sh. Sunil H. Talati, CA Revenue by: Sh. Raghubir Singh, Sr. DR Date of Hearing: 14.07.2026 Date of Pronouncement: 14.07.2026 ORDER Per Raj Kumar Chauhan, Judicial Member: The appeal of the assessee is directed against the order dated 24.11.2025 of ld. CIT(A)/NFAC passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) wherein appeal has been dismissed against the assessment order dated 13.01.2021 for A.Y. 2018-19.

Brief facts as culled out form the orders of the authorities below are that the assessee filed its return of income for A.Y. 2018-19 declaring total income of Rs.17,44,97,800/-. The case was selected for limited scrutiny on the issue of expenditure of personal nature. The assessment was completed u/s 143(3) r.w.s. 143(3A) and 143(3B) of the Act, determining the total income at Rs.18,04,33,530/-. The Assessing Officer made an

2 ITA No. 410/Del/2026 G K Winding Wires Ltd. addition of Rs.57,83,343/- on account of difference in depreciation as per the Companies Act, 2013 and depreciation allowable under the Income-tax Act, 1961, and a disallowance of Rs.1,52,384/- towards employees’ contribution to Provident Fund. The assessee contended that the first addition arose due to an inadvertent error in the tax audit report, which was subsequently acknowledged and corrected by the tax auditor.

Aggrieved by the assessment order, the assessee filed appeal before the ld. CIT(A). During the appellate proceedings, it was noted that the assessee had also challenged the intimation issued u/s 143(1), wherein relief in respect of the addition of Rs.57,83,343/- was subsequently granted. The ld. CIT(A), instead of adjudicating the grounds on merits, dismissed the appeal as withdrawn.

Aggrieved by the impugned order, the assessee is in appeal before us and has raised the following grounds of appeal:

“1. That the impugned order passed by the Ld. CIT(A), NFAC is unjust, bad in law and contrary to the facts of the case. 2. That the Ld. CIT(A) has erred in law and on facts in upholding the order passed by the Assessing Officer, whereby an addition of Rs. 57,83,343/- has been made to the total income on the basis of the intimation order, treating an incorrect ICDS adjustment reflected in the Tax Audit Report as income. The said adjustment being factually and legally erroneous, the addition so sustained deserves to be deleted.

3 ITA No. 410/Del/2026 G K Winding Wires Ltd.

That the Ld. CIT(A) has further erred in upholding the aforesaid addition despite the fact that the alleged adjustment in the Tax Audit Report was subsequently rectified by the Chartered Accountant by filing, a revised Tax Audit Report, rendering the earlier adjustment non- est and without any legal sanctity. Therefore, the addition of Rs. 57,83,343/-, being based on a non- existent adjustment, is liable to be deleted.” 5. We have heard the ld. AR and the ld. DR. The ld. AR at the very outset submitted that the issues raised in the present appeal require proper verification at the assessment stage. It was submitted that the addition of Rs.57,83,343/- arose due to an inadvertent/misinterpretation in reporting of depreciation in the tax audit report and that the tax auditor had subsequently acknowledged the mistake and issued a certificate. It was further submitted that the assessee had also furnished a revised/corrected report and supporting material.

The ld. DR, on the other hand, while supporting the judgment of lower authorities has left it to the discretion of the Tribunal to consider the submissions for restoring the matter to the file of the Assessing Officer.

We have considered the rival submissions and perused the material available on record. It is an undisputed fact that the ld. CIT(A) has not adjudicated the grounds raised by the assessee on merits. The record also shows that the assessee has raised factual contentions regarding the alleged error in the

4 ITA No. 410/Del/2026 G K Winding Wires Ltd. tax audit report and the subsequent correction thereof. Further, the exact effect of the relief granted in the earlier proceedings u/s 143(1) and its impact, if any, on the assessment completed u/s 143(3) requires verification by the Assessing Officer. In the interest of justice and considering the peculiar facts of the case, we deem it appropriate to set aside the impugned order of the ld. CIT(A) and restore the matter to the file of the Assessing Officer for fresh adjudication. The Assessing Officer shall examine the claim of the assessee regarding the revised/corrected tax audit report, the computation of depreciation, the effect of the order passed in the proceedings arising from section 143(1), and the claim relating to employees’ contribution towards PF thereof. The Assessing Officer shall verify all the relevant documentary evidence and thereafter decide the issues afresh in accordance with law. Needless to say, adequate opportunity of being heard shall be afforded to the assessee. The assessee/appellant is also directed to make the necessary submissions/ detailed material before the Assessing Officer within the period of 60 days of this order.

5 ITA No. 410/Del/2026 G K Winding Wires Ltd. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order Pronounced in the Open Court on 14/07/2026. Sd/- Sd/- (S. Rifaur Rahman) (Raj Kumar Chauhan) Accountant Member Judicial Member Dated: 31/08/2026 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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