ITAT Ahmedabad Orders Rectification After Wrong Consideration of Depreciation as Net Profit [Read Order]
It was submitted that an opportunity should be given to have the matter examined properly regarding the amount of depreciation claimed
![ITAT Ahmedabad Orders Rectification After Wrong Consideration of Depreciation as Net Profit [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/ITAT-ITAT-Ahmedabad-Orders-Rectification-taxscan.jpg "ITAT Ahmedabad Orders Rectification After Wrong Consideration of Depreciation as Net Profit [Read Order]")
The Income Tax Appellate Tribunal (ITAT) Ahmedabad has directed rectification after finding that depreciation was wrongly considered as net profit in the intimation issued under Section 143(1) of the Income Tax Act for the Assessment Year 2017–18. The appellant, Gujarat State Aviation Infrastructure Company Limited, challenged the order passed by the Commissioner of Income...
The Income Tax Appellate Tribunal (ITAT) Ahmedabad has directed rectification after finding that depreciation was wrongly considered as net profit in the intimation issued under Section 143(1) of the Income Tax Act for the Assessment Year 2017–18.
The appellant, Gujarat State Aviation Infrastructure Company Limited, challenged the order passed by the Commissioner of Income Tax (Appeal)-National Faceless Appeal Centre, Delhi. The assessee argued that the net profit of Rs.1,44,77,479 (1.44 crore) was mistakenly taken instead of the nil profit reflected in the books of accounts, as per item 45 of Part A of the Profit and Loss Statement in the ITR Form-6.
The amount considered as net profit was actually the figure of depreciation and amortisation mentioned at item 44. Additionally, the assessee pointed out that a disallowance made under Section 37 had already been accounted for under Sections 28 to 44DA in the return filed and accepted in the intimation itself, leading to a double disallowance of the same expenditure.
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At the hearing, the Authorized Representative for the assessee, Parin Shah, submitted that the matter involved a clerical mistake and required rectification at the level of the Jurisdictional Assessing Officer. It was submitted that an opportunity should be given to have the matter examined properly regarding the amount of depreciation claimed.
ITAT Bench consisting of Dr. B.R.R. Kumar (Vice President) and Suchitra Kamble (Judicial Member) accepted the submissions made by the assessee. Observing that the issue pertained to a rectifiable mistake, the Bench directed the matter to be referred to the Jurisdictional Assessing Officer for examination and passing of an appropriate order.
The appeal was accordingly allowed for statistical purposes by the ITAT.
To Read the full text of the Order CLICK HERE
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