DEEPAK STEEL AND POWER LTD,BARBIL vs. DCIT-ROURKELA CIRCLE.ROURKELA., ROURKELA

ITA 591/CTK/2025Status: DisposedITAT Cuttack23 June 2026AY 2006-0712 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the disallowance in AY 2006-07 was due to accounting treatment, while the invoices related to that year. The reversal in AY 2007-08 and subsequent rejection of rectification led to double taxation. The Tribunal followed the 'real income' theory and remitted the matter to the Assessing Officer.

What were the facts?

The assessee claimed a deduction of Rs. 77,83,638/- in AY 2006-07, which was disallowed due to accounting treatment differences. This amount was later allowed in AY 2007-08 but subsequently reversed. The assessee argued this resulted in double taxation and sought the deduction in AY 2006-07.

What were the issues?

Whether the assessee is entitled to a deduction in AY 2006-07 when the same amount was disallowed and then allowed in a subsequent year, leading to potential double taxation. Whether the Assessing Officer correctly handled the rectification and avoided double taxation.

Which sections of the Income-tax Act were involved?

Section 154,Section 263,Section 143(3),Section 153A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK “DB” BENCH

For Appellant: Shri M.R. Sahu, AR
For Respondent: Shri Rajesh Mishra, CIT DR
Hearing: 27.04.2026Pronounced: 23.06.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER These two appeals filed by the assessee against the order of the Commissioner of Income Tax (Appeal) [“the Ld. CIT(A)”, for short], both dated 29.08.2025 passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment years 2006-07 & 2007-08 on the following grounds of appeals:-

ITA Nos.590 & 591/CTK/2025 Deepak Steel and Power Limited; A.Y: 2007-08 & 2006-07 GROUNDS OF APPEAL (A.Y.2006-07)

1.

That on the facts and circumstances of the case and in law, the CIT (A) erred in not allowing the deduction of Rs.77,83,638/- In t

The order continues below.

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