DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), CHANDIGARH vs. GLAXOSMITHKLINE ASIA PVT LTD, GURGAON

Aforesaid appeal by Revenue for Assessment Year (AY) 2017-18 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals)-2, Coimbatore [CIT(A)] dated 09-02-2024 in the matter of an order passed by Ld. AO on 13-09-2023. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under.

From the record, it emerges that the assessee filed return of income which was processed u/s 143(1) by CPC on 27-02-2019 wherein CPC made certain adjustment u/s 43B. Upon further appeal, Ld. CIT(A) partly allowed the appeal vide order dated 12-07-2023 with a direction to AO to verify certain aspects. The Ld. AO passed on order on 13-09-2023 and again confirmed the adjustments made u/s 43B. Aggrieved, the assessee preferred further appeal which was disposed-off vide impugned order dated 09-02-2024. Against the same, the revenue is in further appeal before us. 3. Regarding disallowance of Rs.265.71 Lacs, the assessee submitted that the same represent amount reversed and credited to Profit & Loss Account out of disallowance made in preceding year. The assessee stated that disallowing the same again would amount to double addition. The Ld. CIT(A) accepted this fact and deleted the disallowance. Aggrieved, the revenue is in further appeal before us. 4. The CPC made another disallowance u/s 43B for Rs.326.67 Lacs which represent difference between excise duty paid on opening stock and closing stock on the ground the same was not reported in Tax Audit Report Form 3CD. The assessee stated that it claimed net deduction of Rs.326.67 Lacs being the incremental difference between the excise-duty paid on 31-03-2017 and as on 31-03-2016 and therefore, the same would be an allowable deduction. The Ld. CIT(A) directed Ld. AO to allow the deduction on the basis of Tax Audit report and the assessee was directed to produce the relevant details. Aggrieved as aforesaid, the revenue is in further appeal before us.

It is quite clear from the finding of Ld. CIT(A) that the deduction of Rs.265.71 Lacs was not allowed in earlier years u/s 43B. In this year, the provision has been reversed. Therefore, as rightly held by Ld. CIT(A), the same could not be disallowed again. Double addition / disallowance is impermissible. 6. The another adjustment has arisen apparently due to discrepancies in the Tax Audit Report. We find that Ld. CIT(A) has merely issued directions to Ld. AO to verify the same with a direction to the assessee to substantiate the same. No grievance could be said to have arisen to revenue on this aspect. 7. The appeal stand dismissed. Order pronounced on 24-03-2025. (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT लेखा सद˟ /ACCOUNTANT MEMBER