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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first appeal dated 29.03.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of intimation of assessment dated 24.12.2021 passed by learned CPC, Bengaluru [“AO”] u/s 143(1) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2020-21, the assessee has filed this appeal on following grounds:
“1. That on the facts and in the circumstances of the case and in law, the denial of credit of TCS of Rs. 1168011/- and TDS of Rs. 9469/- in Page 1 of 7 AY 2020-21 intimation u/s 143(1) is unjustified and unlawful and therefore the credit of TCS of Rs. 1168011/- and TDS of Rs. 9469 be kindly allowed.
2. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred and not justified in his findings that the denial of credit of TCS of Rs. 1168011 and TDS of Rs. 9469 is lawful, such findings be held as unlawful and injudicious and therefore be quashed and the credit of TCS of Rs. 1168011 and TDS of Rs. 9469 be kindly allowed. 3.That on the facts and in the circumstances of the case and in law the assessee submits that having regard to the nature of business and the explanation furnished before the lower authorities it be held that the assessee is lawfully eligible and entitled to claim the credit of TCS of Rs. 1168011 and TDS of Rs. 9469 and the denial of such credit is injudicious and unlawful and hence the credit of TCS of Rs. 1168011 and TDS of Rs. 9469 be kindly allowed. 4.That on the facts and in the circumstances of the case and in law, the levy of interest under section 234B and 234C is unlawful and without jurisdiction, therefore, the same be kindly deleted. 5.That on the facts and in the circumstances of the case and in law, the adjustment, addition of Rs. 1781420 to the disclosed income is unlawful and unjustified and hence be deleted. 6.That on the facts and in the circumstances of the case and in law, while making statutory computation of total income shown in return at Rs. 53619320/- the difference of depreciation of Rs. 1781420/- has already been added in the disclosed returned income and therefore the further adjustment of Rs. 1781420/- u/s 143(1) is a double addition of the same amount, hence be deleted.”
This is a re-called matter. Originally, this appeal was decided by Co- ordinate Bench of ITAT, Indore vide order dated 19.01.2024. Thereafter, the assessee filed Misc. Application No. 51/Ind/2024 informing that the Ground No. 5 & 6 remained unadjudicated. The assessee’s Misc. Application was allowed vide order dated 23.08.2024 for limited purpose of adjudication of Page 2 of 7 adjudication of Ground No. 5 & 6.
We have heard learned Representatives of both sides and case records perused.
Ld. AR carried us to impugned Ground No. 5 & 6 to show that the assessee has challenged the addition of Rs. 17,18,420/- (exact amount is Rs. 17,81,417/-) made by AO in the intimation issued u/s 143(1). Ld. AR then carried us to the copies of (i) Computation of Total Income, (ii) Audited P&L A/c, and (iii) Return of Income filed by assessee, placed at Pages 2-93 of Paper-Book. We re-produce below the relevant page of Computation of Total Income (Page 2 of Paper-Book) and the relevant page of Return of Income (Page 43 of Paper-Book):
Page 5 of 7 has, before filing return of income, voluntarily made an addition of Rs.
45,63,142/- under the caption “Add: Depreciation disallowed” and deduction of Rs. 27,81,725/- under the caption “Less: Allowed Depreciation”.
The net effect of these two adjustments is the addition of Rs. 17,81,417/-.
Then, the Ld. AR referred Page 41 of the intimation u/s 143(1) passed by AO to demonstrate that the Ld. AO has made addition of Rs. 17,81,417/- in the intimation so issued. Thus, Ld. AR submitted that the addition made by AO is nothing but a double addition of what the assessee had already made before filing return of income. Therefore, Ld. AR made a straightforward prayer, the addition made by AO deserves to be deleted as the same had already been made by assessee.
Ld. DR for revenue understood the submission made by Ld. AR and left the issue to wisdom of bench without raising any dispute.
After a careful consideration and on perusal of documents as noted above, we agree that the assessee has already made addition of Rs. 17,81,417/- by way of suitable adjustments in the return of income filed to department and the addition made by AO in the intimation u/s 143(1) has resulted in double addition which is liable to be deleted. Faced with this situation, we direct the AO to delete the addition of Rs. 17,81,417/-. The Ground No. 5 & 6 of assessee are allowed therefore.
Page 6 of 7 to adjudication of Ground No. 5 & 6.
Order pronounced in open court on 24/07/2025