M/S. SAHA TEXTILE,KOLKATA vs. DCIT, CIRCLE 49(1),, KOLKATA

After hearing the rival contentions and perusing the materials available on record, we find that in this case the assessee has filed the return of income on 14.03.2022, which was processed u/s 143(1) of the Act on 25.10.2022, wherein an addition of ₹1,29,871/- was made. The said addition was made on the basis of tax audit report specifically para no.25 wherein the auditors have reported that the amount chargeable to tax u/s 41 of the Act at ₹1,29,871/-. We note that from the perusal of profit and loss account that the same has been included by the assessee under the head other income. The breakup is available at schedule no.8 of the audited accounts, which clearly showed that the sundry balances written back of ₹1,29,871/- were included therein. Therefore, the income has been offered to tax by the assessee suo-motto in the return of income. The AO/ CPC by making addition of ₹1,29,871/-, in the order passed u/s 143(1) of the Act, added the same resulting into taxing the same income twice. The ld. CIT (A) dismissed the appeal on the ground that there was no compliance from the assessee in the appellate proceedings. After considering the facts on record, we find that this income has been offered to tax by the assessee itself in the return of income and therefore, the addition made by the ld. AO / CPC while processing is wrong and has to be deleted. Consequently, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition. 05. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 22.07.2025. (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER)