Loading judgment…
Facts
The assessee challenged the disallowance of income tax paid and interest on income tax by the JCIT(A) and CPC. The assessee contended that these amounts were never claimed as expenses in its return of income, and their reporting in the audit report was inadvertent, leading to an incorrect addition by the lower authorities.
Held
The tribunal remitted the matter back to the Assessing Officer to verify whether the assessee had indeed claimed the income tax expenses as a deduction in the return of income. The AO is directed to delete the addition if the expenses were not claimed, after providing an opportunity of hearing to the assessee.
Key Issues
Whether the disallowance of income tax paid and interest on income tax is valid when the assessee claims these amounts were not expensed in its return of income and were inadvertently reported by the auditor.
Sections Cited
AI-generated summary — verify with the full judgment below
िनधा�रती की ओर से/Assessee by : Sh. T. N. Singla, CA राज� की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr.DR सुनवाई की तारीख/Date of Hearing : 10.02.2026 उदघोषणा की तारीख/Date of Pronouncement : 13. 02.2026 आदेश/Order PER LALIET KUMAR, J.M: This appeal by the assessee is directed against the order of the Ld. Addl. / Joint Commissioner of Income Tax (Appeals)-6, Mumbai dt. 30.3.2025 for assessment year 2024-25. 2. The Assessee has raised following grounds of appeal:
1. That the order passed by the Id. JCIT (A) is bad and against the provisions of law and facts.
2 517/Chd/2025 2. That the Ld. JCIT (A) has wrongly upheld the high pitched assessment without verifying the details submitted during the appellate proceedings
3. That the Ld. JCIT (A) wrongly upheld the disallowance of the Income Tax paid amounting to Rs.49,00,216/-which was never claimed as expense by the appellant in its return of income.
4. That the Id. JCIT (A) has wrongly upheld the disallowance on account of Expense of "Interest on Income Tax" amounting to Rs.29,811/-again, which was already disallowed in the return.
5. That the Ld. JCIT (A) has wrongly upheld the addition of Rs.49,30,030/-on account of inconsistency in expenditure disallowed in the ITR and Form 3CA-CD without verifying the details submitted during appellate proceedings.
The ld. AR, at the outset submitted that the CPC had made the adjustment / addition of income tax paid by the Assessee to the income of the Assessee even though it was not claimed as expenditure by the Assessee in the computation of income. For those purposes, he has drawn our attention to page 3 of the paper book. Further, it was submitted that in the profit and loss account the tax expenses forming part of the balance sheet has not been factored in while determining the profit and loss of the Assessee. The ld. AR has submitted that in the Audit Reprot, inadvertently it has been reported by the Auditor had mentioned that the amount of Rs. 49,00,216/- pertains to the 3 517/Chd/2025 expenses of the income tax even though it was not claimed by the Assessee. Despite that the lower authorities had made the addition of the income tax expenses to the income of the Assessee. It was subtitled by the ld. AR that the matter may be remitted back to the file of the Assessing Officer for verification i.e. whether the Assessee had claimed expenses towards income tax in the return of income or not.
The ld. DR had no objection if the matter is sent to the file of the Assessing Officer for verification.
In the light of the above, the matter is remitted back to the file of the Assessing Officer with a direction to verify as to whether the Assessee has claimed the expense of income tax in the return of income or not while computing the profit and loss of the Assessee or not. This exercise shall be carried out by AO after following the due process of law and offering the opportunity of hearing to the Assessee. If the Assessing Officer on verification found that the Assessee has not claimed the expenses as deduction towards the payment of income tax in the return of income while computing the profit and loss account, then the addition made in the hands of the Assessee to the extent of the amount shall be deleted by the Assessing Officer.