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Facts
Assessee filed its return of income for AY 2019-20 under section 115JC. The return was processed via intimation u/s 143(1), disallowing Rs. 23,35,799/- under section 37(7) without specific reasons. The assessee claimed this amount was already included in its computation of income and the disallowance by the CPC constituted a double addition, a contention rejected by the Ld. CIT(A).
Held
The Tribunal observed the assessee's claim of double addition and the Ld. CIT(A)'s rejection. Concluding that the mistake appeared apparent from the computation of income, the Tribunal remitted the issue back to the Assessing Officer for fresh adjudication. The AO is directed to verify the claim and pass a speaking order after providing the assessee an adequate opportunity of being heard.
Key Issues
Whether the disallowance of Rs. 23,35,799/- by the Centralized Processing Centre (CPC) under section 115JC constituted a double addition, given the assessee's contention that the sum was already included in its income computation.
Sections Cited
115JC, 143(1), 37(7)
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Income Tax Appellate Tribunal, DELHI BENCH “C”, NEW DELHI
Before: SHRI SHAMIM YAHYA, & SHRI YOGESH KUMAR US
ORDER
PER SHAMIM YAHYA, AM :
The Assessee has filed the instant Appeal against the Order of the Ld. Addl. /JCIT (A) Aurangabad dated 22.2.2024, relating to assessment year 2019-20 on the following grounds:- 1.1 Because the Ld. CIT(A) gas erred in law and on facts in sustaining the addition of Rs. 23,35,799/- under section 115JC of the Act.
1.2 Because the sum of Rs. 23,35,799/- was already added by the appellant in its computation of income and therefore, the same cannot be again added to the total income of the appellant as the same will tantamount to double taxation. 2. Because the order appealed against is contrary to the facts, law and the principles of natural justice to the extent above.
In this case, assessee filed its return of income for the relevant assessment year on a total income of Rs. 12,44,68,986/- under section 115JC of the Act. The aforesaid return was processed in terms of intimation u/s. 143(1) of the Act dated 1.5.2020. In terms of paragraph 15 of Annexure-Business and Profession, a sum of Rs. 23,35,799/- was disallowed on the premise of [disallowable under section 37(7)], and no reason was assigned for the same. Against the above order, Assessee appealed before the Ld. CIT(A). It was claimed that the aforesaid sum of Rs. 23,35,799/- was already added by the assessee in its computation of income under ‘Penalty or Fine etc.’ and it forms part of the declared income of Rs. 12,44,68,986/-. It was submitted that this is supported by the computation of income at page no. 2 & 3. It was further submitted that an addition of Rs. 23,35,799/- is patently illegal as the same tantamount to double addition. However, Ld. CIT(A) was not convinced and he accordingly held that assessee had not made any cogent evidence in this regard. Hence, he affirmed the action of the CPC.
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Against the aforesaid order, assessee is in appeal before us.
We have heard the ld. DR. None appeared on behalf of the assessee, despite issue of notice, hence, we are deciding this appeal exparte qua the assessee. From the grounds, we note that assessee has claimed that a sum of Rs. 23,35,799/- has been added by the CPC, which has led the double addition. Ld.CIT(A) has not accepted the same, despite the assessee’s submission that the mistake is apparent from the computation of income. In our considered opinion, interest of justice will be served if the issue in dispute is remitted back to the file of the Assessing Officer for fresh adjudication. Accordingly, we direct the AO to verify the veracity of the claim of the assessee and thereafter pass a speaking order, after giving adequate opportunity of being heard to the assessee. We hold and direct accordingly. 5. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced on 10/12/2024. Sd/- Sd/- (YOGESH KUMAR US) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER SRBHATNAGAR Copy forwarded to:- 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR, ITAT Assistant Registrar
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