What did the Tribunal hold?

The Tribunal found that the issue required factual examination to determine if the income adjustment was indeed a double counting. Therefore, the matter was remitted back to the Assessing Officer for verification.

The assessee's return of income was processed under Section 143(1)(a) of the Income Tax Act, leading to an addition to income. The assessee contended that the income adjustment made by the CPC was an error, as the income was already included in the return and potentially considered twice.

What were the issues?

Whether the adjustment made by the CPC under Section 143(1)(a) was justified, or if it constituted a double counting of income already declared by the assessee.

Kersoo Jal Indorewalla vs DCIT | ITAT Kolkata 2026

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH AT KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘B’ BENCH AT KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA No(s). 298 & 299/KOL/2026 Assessment Year(s) 2022-23 & 2023-24 Kersoo Jal Indorewalla DCIT, Circle-40, Kolkata Vs. (Appellant) (Respondent) PAN: AAFPI6022H Appearances: Assessee represented by : Sanjay Chatterjee, FCA. Department represented by : Madhumita Das, Sr. DR. Date of concluding the hearing : 13.07.2026 Date of pronouncing the order : 03.08.2026 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: Both these appeals filed by the assessee are against the separate orders of the Addl/JCIT(A)-Kochi [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2022-23 & 2023-24 dated 11.12.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: I. ITA No. 298/KOL/2026; AY 2022-23: “GROUND NO. 1 The Commissioner/Additional/Joint Commissioner of Income Tax (Appeals), was not justified in confirming addition of Rs. 13,15,530/- to the income of the appellant by accepting the course of action followed by CPC, Bengaluru u/s 143(1)(a) of the Act when such addition was beyond the scope of prima- facie adjustments as stipulated in the said action where addition to income on debatable issues were specifically excluded.

Aggrieved with the order of the Ld. Addl/JCIT(A), the assessee has filed this appeal before us.

Rival contentions were heard and the submissions made have been examined. The Ld. AR submitted that the figure of ₹13,15,530/- shown was included in the return of income filed and there was no requirement of adding the same again and a similar issue was also arising in the subsequent year. During the course of the hearing before us, the assessee has also filed a written submission as under:

“1.0 The Appellant here is an individual who had filed his return u/s 139(1) of the Act on 29-09-2022 disclosing an income of Rs 2,73,28,410/- along with Tax Audit Reports in Form 3-CB and Form 3-CD (ITR-V at page no. 73). The return was processed u/s 143(1) on 07-08-2023 raising a remand of Rs 1,67,750/- (copy of order provided at page nos. 55 to 71). The demand has come to existence owing to consideration of an income from capital gain of Rs. 13,15,530 twice. 2.0 Before processing, a notice was issued u/s 143(l)(a) on 05-06-2023 and such notice has been passed in the Appellate Order at page no. 25 of 29 (page no. 29 of Appeal Memorandum filed). The error description given was as below :- PFA Category PFA-A Error description Adjustment of income arising u/s 143(1)(a)(1) : Income shown in Sch : SI is not taken into account while computing the total income. As entered by taxpayer Rs. 1,57,72,141/- As computed in processing Rs. 1,70,87,671/- Proposed adjustment of Rs. 13,15,530/- total income 3.0 Objection to the same was filed but owing to limitation of words in the ITD portal, detailed explanation could not be filed. This fact was brought to the notice of the National Faceless Appeal Centre while filing the grounds of

Assistant Registrar ITAT, Kolkata Benches Kolkata

KERSOO JAL INDOREWALLA,KOLKATA vs. DCIT, CIRCLE 40, KOLKATA

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