Electronics Industry Development Corporation Limited Vs CIT (Appeals) (ITAT Kolkata)
In Electronics Industry Development Corporation Limited Vs CIT (Appeals), the appeals before the ITAT Kolkata arose from an order dated 29.05.2024 passed under Section 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals), NFAC, Delhi. Since both appeals involved the same assessee and common issues, they were disposed of through a consolidated order. The Tribunal first addressed ITA No. 1590/Kol/2024.
The primary issue was whether reopening of assessment under Sections 147/148 was valid or based merely on a change of opinion without satisfying the conditions of the proviso to Section 147. The assessee, a Government company and nodal agency of the Government of West Bengal for development of IT and IT-enabled services, had filed its return on 28.09.2012 declaring total income of Rs. 6,17,45,925/-. The case was selected for scrutiny, and assessment under Section 143(3) was completed on 28.03.2015.
Subsequently, the case was reopened under Section 147 by issuing notice under Section 148. The reopening was based on the allegation that the assessee had claimed standard deduction at 30% under Section 24(1) not only on rent receipts but also on electricity recovery, service charges, and permission fees, resulting in excess deduction and escapement of income. The reassessment under Section 143(3)/147 dated 26.11.2019 led to an addition of Rs. 1,67,29,175/-.
