2025 (12) TMI 1431

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....manated from the order of the CPC, Bengaluru (in short, 'CPC') passed under section 154 of the Act, date of order 19/03/2025. 2. The brief facts of the case are that the assessee is engaged in the business of manufacture and export of garments. During the year under consideration, the assessee exported goods at a zero rate of Goods and Services Tax (GST). The assessee filed its return of income declaring a total income of Rs. 3,10,51,510/-. The return was processed under section 143(1) of the Act and the income was assessed at Rs. 4,52,64,060/- after making additions on account of duty drawback amounting to Rs. 51,57,719/- and refund of Integrated Goods and Services Tax (IGST) on export sales amounting to Rs. 90,54,833/-. Both these item....

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....was received in the subsequent year. Accordingly, the Ld. CIT(A) deleted the addition to the extent of Rs. 47,50,587/- and sustained the addition in respect of the balance amount. The appeal was thus partly allowed. Being aggrieved, the assessee is in further appeal before us. 3. The Ld. AR argued the matter and filed a paper book containing pages 1 to 204, which has been placed on record. The assessee also filed an application for admission of additional evidence in the form of the "IGST Refundable Ledger from 01.04.2023 to 31.05.2024", enclosed at pages 186 to 188 of the APB. The Ld. AR submitted that the assessee, being an exporter, effected export sales outside India by charging IGST at the applicable rate at the time of export. Upon....

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....ting method whereby they show the GST Liability & GST ITC credits under Duties & Taxes in the Balance Sheet. The same has been shown in tax audit report clause 16 b only for the purpose of disclosure of details. The GST Liability & GST ITC Credit same has been shown as current liability, IGST on Export Sales is actually paid & then the IGST Refund is claimed in GST Returns. The GST Refund received is only the refund of IGST which is first paid & then claimed as refund. Hence the IGST Refund received is not an income and hence no addition should be made. The assesse requested to kindly delete the additions made in Intimation under Section 143(1) and rectify this mistake." 4. The Ld. DR supported the orders passed by the revenue authoritie....