Aditya Birla Real Estate Limited Vs CIT (ITAT Mumbai)
Mumbai ITAT: Ind AS Book Entries Cannot Create Taxable Income; ₹130.92-Crore ICDS Additions Deleted
Mumbai ITAT in *Aditya Birla Real Estate Limited Vs CIT* dealt with cross appeals for AY 2019-20 involving differences between Ind AS accounting entries and taxable income computed under the Income-tax Act and ICDS. The Tribunal held that an amount appearing in the Profit & Loss Account under Ind AS cannot, merely because of such accounting recognition, be treated as taxable income where the Act or applicable ICDS requires different treatment. It allowed ICDS-related grounds concerning the ₹4.62 crore net security-deposit adjustment, ₹40 crore royalty income already offered in AY 2018-19, ₹75.93 crore EPCG government-grant adjustment and ₹10.36 crore borrowing-cost adjustment. The Tribunal also allowed the assessee’s Section 35(2AB) claim of ₹3.97 crore, holding that absence of Form 3CL could not, in the circumstances, defeat the deduction where Form 3CM approval had been obtained. Issues relating to TDR cost and consequential set-off, leave entitlement and gift expenditure were restored for verification/fresh adjudication. The order was pronounced on 17/08/2026.
Background and Procedural History
The Mumbai Bench of the Income Tax Appellate Tribunal heard cross appeals filed by the assessee and the Revenue against the order dated 31/03/2025 passed by the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2019-20. The assessee is Aditya Birla Real Estate Limited, formerly known as Century Textiles and Industries Limited. The appeals were ITA No. 3476/Mum/2025 filed by the assessee and ITA No. 4378/Mum/2025 filed by the Revenue. The hearing concluded on 11-Jun-2026 and the order was pronounced on 17/08/2026.
