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Facts
The assessee filed an appeal against an order related to the assessment year 2024-2025. The assessee's return was processed, and an intimation was issued denying the claimed income and treating total receipts as income. The assessee's representative was absent.
Held
The adjustment made by the CPC in the intimation under section 143(1) of the Act, which denied the assessee's application for expenses and treated total receipts as income, was found to be impermissible and unsubstantial.
Key Issues
Whether the total receipts can be treated as income and if registration under section 12A is denied, whether business income should be computed.
Sections Cited
143(1), 12A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA
Before: SHRI GEORGE MATHAN
O R D E R This is an appeal filed by the assessee against the order dated 07.03.2025 passed by the ld.Addl/JCIT(A)-5, Mumbai, for the assessment year 2024-2025. 2. None represented on behalf of the assessee. A perusal of the ground raised
by the assessee shows that the return filed by the assessee has been processed and an intimation 143(1) of the Act has been issued on the assessee wherein the application of income as claimed by the assessee has been denied and the total receipts of the assessee has been treated as the income of the assessee.
3. It was put to the Ld.Sr DR as to how the total receipts could be treated as the income of the assessee and if at all the registration u/s.12A of the Act was to be denied then the business income of the assessee should have been computed.
The Ld.DR vehemently supported the order of the CPC and the ld.JCIT(A).
I have considered the submission of the ld. Sr. DR. As it is noticed that the CPC has denied the assesse’s application, which is in effect the expenses in respect of the earning of the income of the assessee in an intimation u/s. 143(1) of the Act and as it is found that such adjustment is not permissible in an intimation u/s.143(1) of the Act, the adjustment as made by the CPC is found to be unsubstantial. Consequently, the intimation issued u/s.143(1) of the Act stands quashed.