WADHWAGROUP HOLDINGS PRIVATE LIMITED,MUMBAI vs. CENTRAL CIRCLE 5(4), MUMBAI, MUMBAI

Per: SHRI JAGADISH, A.M.:

ITA No.288/M/2026 Wadhwagroup Holdings Private Limited 29.12.2019 determining the loss at ₹164.74 crores after making, inter alia, an addition of ₹58,69,608/- on account of double deduction claimed in the computation of income. 3. During the course of assessment proceedings, the Assessing Officer observed that the assessee had reduced an amount of ₹58,69,608/- twice, once while computing the profits and gains of business and again under the head “any other amount allowable as deduction”, thereby resulting in double deduction. The Assessing Officer issued notice u/s 142(1) dated 23.12.2019 calling upon the assessee to explain as to why the said amount should not be added back to the total income. The facts on record, however, reveal that prior to issuance of the said notice, the assessee during the course of furnishing details had itself realised the mistake and vide letter dated 18.12.2019 submitted before the Assessing Officer that the amount of ₹58,69,608/- was inadvertently claimed twice and requested that the same may be added back to the income. The assessee reiterated the said position in subsequent submissions also. 4. The Assessing Officer, however, proceeded to make the addition and initiated penalty proceedings u/s 270A of the Act on the ground that the assessee had under-reported its income. The penalty was ultimately levied at ₹9,06,860/- being 50% of the tax on the alleged under-reported income. The Ld. CIT(A) confirmed the action of the Assessing Officer. 5. The Ld. Authorised Representative submitted that the double deduction was purely on account of inadvertent computational error and there was no intention to under-report income. It was further submitted that the assessee itself detected the mistake during the course of assessment proceedings and suo motu offered the amount for taxation vide letter dated 18.12.2019, much prior to the issue of show cause 2

ITA No.288/M/2026 Wadhwagroup Holdings Private Limited notice by the Assessing Officer on 23.12.2019. It was thus contended that the explanation offered by the assessee was bona fide and all material facts were duly disclosed. 6. The Ld. Departmental Representative, on the other hand, relied on the orders of the lower authorities. 7. We have considered the rival submissions and perused the material available on record. The undisputed facts of the case are that the amount of ₹58,69,608/- was duly reflected in the books of account and financial statements of the assessee. The addition arose only on account of double deduction claimed in the computation of income. It is also an admitted position that the assessee, during the course of assessment proceedings, had itself brought this mistake to the notice of the Assessing Officer vide letter dated 18.12.2019 and offered the same for taxation. The show cause notice issued by the Assessing Officer pointing out the said discrepancy is dated 23.12.2019. Thus, the sequence of events clearly demonstrates that the disclosure was voluntary and prior to detection by the Assessing Officer. 8. In our considered view, this is not a case where the Assessing Officer has detected any undisclosed income or brought on record any material to show that the assessee had either concealed income or furnished inaccurate particulars. The addition has arisen purely on account of a computational mistake, which was duly explained by the assessee and accepted during the course of assessment. 9. Section 270A(6)(a) provides that where the assessee offers an explanation in respect of any addition and the same is found to be bona fide and all material facts necessary for computation of income have been disclosed, such amount shall not be considered as under-reported income. In the present case, the explanation offered by the assessee

ITA No.288/M/2026 Wadhwagroup Holdings Private Limited that the double deduction was claimed due to inadvertent error remains uncontroverted. Further, there is no allegation that the assessee has withheld any material fact.

Order pronounced in the open court on 27/04/2026.

Sd/- Sd/- (BEENA PILLAI) (JAGADISH) Judicial Member Accountant Member

Mumbai, Dated: 27/04/2026 Ashwani Rao Sr. Private Secretary

ITA No.288/M/2026 Wadhwagroup Holdings Private Limited

Copy of the order forwarded to: 1. Assessee 2. Respondent 3. The CIT 4. The CIT (Appeals) 5. The DR, I.T.A.T. By order

(Assistant Registrar) ITAT, Mumbai