ASIAN PAINTS LIMITED,MUMBAI vs. DCIT-ACIT, CIRCLE 3(4), MUMBAI, MUMBAI

Briefly stated the facts of the case are that the assessee filed its return of income on 18.11.2022 declaring total income of Rs.44,09,85,71,370/-. The return was processed under section 143(1)(a) of the Act on 17.11.2023 at total income of Rs.44,59,89,99,830/- in which total adjustment of Rs.50,04,28,460/- was made comprising of; (i) Addition of Rs.29,33,84,364/- on account of inconsistency in the amount of income chargeable to tax under section 41; and (ii) Addition of Rs.10,25,78,417/- on account of inconsistency in gratuity amount disallowable under section 43B claimed in return and in tax audit report.

In addition to two other additions which are not challenged before us. The adjustments made by the CPC were challenged before the CIT(A) but without any success.

Before us, the counsel for the assessee vehemently stated that the addition of Rs.29,33,84,364/- is double addition as the same income has been offered for tax and insofar as the other addition of Rs.10,25,78,417/-, the assessee has already paid the amount before filing the return of income.

We have given a thoughtful consideration to the order of the authorities below.

The computation of income of the assessee is as under:

The statement of profit and loss account is as under:

It can be seen from the above profit and loss account, the assessee has shown other operating revenue at Rs.451.89. The bifurcation of which is as under: Break-up of Other income (Note 23 of Annual Report) Particulars Total Excess Provision of earlier years -37,35,68,513 Miscellaneous Income -48,42,78,548 GST Recovery from vendors -4122 Sundry Balance written off 10099743 Sundry Balance written back -293384634 Grand Total -1141135804

From the above, it can be seen that the assessee has added back Rs.29,33,84,364/- which is part of its other operating revenue as mentioned above.

Since this fact has missed the sight of CPC, the AO is directed to examine the same and decide the issue afresh as per the relevant provisions of law.

Ground No.1 is allowed for statistical purposes.

In so far as Ground No.2 is concern, the assessee claims that the same has been paid before filing the return of income as under: Particulars INR INR Gratuity debited to P&L account in FY 21-22

This is also missed the sight of the CPC, therefore, the AO is directed to decide the grievance afresh after affording reasonable and adequate opportunity of being heard to the assessee.

In the result, the appeal by the assessee is allowed for statistical purposes.

अपीलाथ / The Appellant 2.  थ / The Respondent 3. संबंिधतआयकरआयु" / Concerned Pr. CIT 4. आयकरआयु" ) अपील ( / The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file.