Adani Electricity Mumbai Ltd. vs. DCIT

Parties Involved

Facts Summary

The assessee, Adani Electricity Mumbai Ltd., initially filed its original return of income on September 25, 2019, and later submitted a revised return on January 1, 2020, declaring a total loss of Rs. (-) 10,06,36,03,425/- under the normal provisions of the Income Tax Act, while also reporting a book profit of Rs. 1,93,74,48,309/- under Section 115JB of the Act. Subsequently, the assessee received an intimation under Section 143(1) from the Central Processing Centre (CPC) in Bangalore on July 24, 2020, which determined the total loss at Rs. (-) 10,03,01,75,248/-. The Assessing Officer at the CPC made a disallowance under Section 36(1)(va) concerning employees' contributions to the National Pension Scheme (NPS), amounting to Rs. 3,34,28,177/-. The assessee appealed to the Commissioner of Income Tax (Appeals) National Faceless Appeal Centre (CIT(A)-NFAC), which upheld the Assessing Officer's disallowance. The assessee further appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the order passed by the Ld. CIT(A) is arbitrary, erroneous, contrary to the provisions of law and on facts.
• 2. Whether the Ld. CIT(A) has grossly erred in upholding adjustment of Rs. 3,34,28,177/- on account of payment of employees’ contribution to National Pension Scheme (NPS) under section 36(1)(va) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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