IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JM AND SMT. RENU JAUHRI, AM ITA No. 4625/Mum/2024 (Assessment Year: 2022-23)

DCIT-CC-7(1), Mumbai Kopran Ltd.

Room No. 653, 6^th Floor, Aaykar 1076, Parijat House, Dr E Mosses Vs.

Bhavan, M. K. Road, Mumbai – Road, Worli, Mumbai – 400018.

400020.

PAN/GIR No. AAACK3202D (Assessee) : (Respondent Assessee by : Shri. Bhupendra Karkhanis a/w. Shri.

Jay Dharod Respondent by : Shri. Biswanath Das-CIT DR Date of Hearing : 22.01.2025 Date of Pronouncement : 17.04.2025

O R D E R

Per Kavitha Rajagopal, J M:

This appeal has been filed by the revenue, challenging the order of the learned Commissioner of Income Tax (Appeals)-49, Mumbai (‘ld. CIT(A)’ for short), National Faceless Appeal Centre (‘NFAC’ for short) passed u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2022-23.

2. The revenue has challenged the deletion of addition made by the CPC amounting to Rs.

23,41,32,000/- as without considering the provisions of Section 40 and Section 43B of the Act through Notification No. 28/2021, dated 01.04.2021.

3. Briefly stated that the assessee had filed its return of income declaring total income at Rs. 16,36,39,380/- for the year under consideration and had computed tax @22% by exercising the above concessional tax u/s. 115BAA of the Act by duly filing form 10IC on 30.09.2022, the same was processed u/s. 143(1) of the Act and the AO/CPC issued intimation u/s. 143(1)(a) dated 14.12.2022, proposing an adjustment due to inconsistency in the amount of profit chargeable to tax u/s. 41 of the Act as per the return of income and the audit report. The assessee filed its reply for the same dated 13.01.2023 and the return was processed u/s. 143(1) of the Act, where the CPC/ld. AO determined total income at Rs. 40,45,91,800/- thereby raising a demand of Rs. 7,68,80,950/- after making the following adjustments which are tabulated herein as under:

Particulars Amount (in Rs.)

Non Consideration of response to notice to propose NA adjustments u/s. 143(1)(a) filed vide letter dated

13.01.2023 Wrong addition u/s. 41 of the Act (which being Rs. 68,20,418/-

already credited to P&L Account, was considered and offered to tax in return of income).

Wrong addition on account of increase in profit or Rs. 34,56,43,410/-

decrease in loss of ICDS adjustments and deviation in method of valuation of stock.

Wrong adjustments on account of decrease in profit Rs. 11,77,61,410/-

or increase in loss of ICDS adjustments and deviation in method of valuation of stock.

Higher interest u/s. 234B of the Act charged (Rs. Rs. 1,31,75,579/-

1,40,09,036/- as per 143(1) less Rs. 8,33,457/- as per return of income)

Higher interest u/s. 234C of the Act charged (Rs. Rs. 30,62,467/-

41,48,357/- as per 143(1) less Rs. 10,85,890/- as per return of income)

4. Aggrieved the assessee was in appeal before the first appellate authority, challenging the intimation passed u/s. 143(1) of the Act on the ground of violation of principles of natural justice stating that the CPC/AO has issued intimation only to the proposed adjustment u/s. 41 of the Act but proceeded to make the other additions mentioned above without giving notice to the assessee. The assessee also challenged the addition on the merits. The ld. CIT(A) vide order dated 10.07.2024, allowed the appeal filed by the assessee on various grounds.

5. The revenue is in appeal before us, challenging the deletion on addition made on account of increase in profit or decrease in loss of ICDS adjustment and deviation in method of valuation of stock amounting to Rs. 34,56,43,410/- and decrease in profit or increase in loss of ICDS adjustments and deviation in method of valuation of stock amounting to Rs. 11,77,61,410/- which were deleted by the ld. CIT(A) on the ground that the disallowance made by the CPC was due to the typographical error made in reporting the figure of increase in purchase on account of inclusion of GST.

6. The learned Depa