General Mills India Pvt. Ltd. Vs DCIT (ITAT Mumbai)
In, the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) partly allowed the assessee’s appeal for Assessment Year 2022-23 and remanded the matter to the Commissioner of Income Tax (Appeals) for fresh adjudication. The dispute arose from additions made during processing of return under Section 143(1) and their subsequent adoption in the assessment completed under Section 143(3) of the Income Tax Act.
The assessee had originally filed its return declaring total income of Rs.104.15 crore. The return was later processed by the Centralized Processing Centre (CPC), Bengaluru, under Section 143(1), resulting in assessed income of Rs.263.91 crore after making an adjustment of Rs.159.76 crore relating to increase or decrease in profit due to deviation in valuation method under Section 145A. A proposed adjustment under Section 35(1)(iv) amounting to Rs.1.17 crore was initially raised but subsequently dropped by the CPC after considering the assessee’s explanation.
Before processing under Section 143(1), however, the case had already been selected for scrutiny and notice under Section 143(2) was issued on 02.06.2023. Despite this, CPC subsequently processed the return on 29.07.2023 and issued intimation making the adjustment under Section 145A. The assessee filed a rectification application under Section 154 against the intimation and also filed an appeal.
