GHANSHYAM BAJABHAU KADAM,MUMBAI vs. DY COMM OF INCOME TAX-41(2)(1), MUMBAI

O R D E R Per Amarjit Singh (AM): The present appeal filed by the assesse is directed against the order passed by the NFAC, Delhi dated 16.12.2022 for A.Y. 2021-22. The assesse has raised the following grounds before us: “1. The ld. CIT(A) erred in confirming the action of ld. A.O (CPC) of adding Rs.4,05,875/- to business income of appellant in spite of the fact that the same income has been offered to tax under other heads.”

2. The CPC Bangalore has processed return of income filed by the assessee vide intimation dated 08.07.2022 and added Rs.4,05,875/- as business income of the assessee. In this regard, the assessee submitted that being a proprietary, income not chargeable under the tax head “Profit and gain of Business or Profession” are credited to capital P a g e | Ghanshayam Bajabhau Kadam VS. DCIT-41(2)(1) account and same are reported under different heads in the return filed. However, the CPC has not agreed with the submission of the assesse.

3. Aggrieved, the assessee filed the appeal before the ld. CIT(A). the ld CIT(A) has dismissed the appeal of the assesse.

4. Heard both the sides and perused the material on record. During the course of appellate proceeings before us the ld. Counsel submitted that as per clause 16(d) of Form 3CD it is statutory requirement to provide detail of income not credited to profit and loss account. The ld. Counsel also explained that income reported under clause 16(d) of Form 3CD have already been offered to tax under different heads. However, the same was not considered by the CPC before making the impugned addition as business income of the assessee. With the assistance of the ld. Representative we have perused the copy of income tax return filed by the assessee wherein at part A under column 5 (d) the assesse has shown amount of Rs. 4,05,875/- credited to profit and loss account further as per schedule 0S of the return of income under the head income from other sources the assessee has given the break-up of the amount of Rs.4,05,875/- shown as income under the head income from other sources which comprised i.e i. Interest on FDR of Rs.2,31,832/- ii. Interest on sale SBI Bank Rs.7961/- iii. Interest on ……………. Rs.1476/- iv. LIC pension scheme Rs.10,752/- v. Interest of income Tax refund Rs.1003/- vi. Agricultural income Rs.52,851/- After perusal of the above information it is noticed that the aforesaid particulars of income have already been reflected in the schedule 0S and schedule E of the return of income filed by the assesse pertaining to assessment year 2021-22 which have not been verified before treating the amount of Rs.4,05,875/- as business income of the assesse. In view of the above facts and circumstances we restore this matter to the file