KNOLDUS SOFTWARE LLP,DELHI vs. ACIT, CIRCLE-49(1), DELHI, DELHI

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ITA 1847/DEL/2024Status: DisposedITAT Delhi10 December 2024AY 2019-20Bench: SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER, SHRI YOGESH KUMAR US (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

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.

What were the 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).

What were the 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.

Which sections of the Income-tax Act were involved?

Section 115JC,Section 143(1),Section 37(7)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “C”, NEW DELHI

Before: SHRI SHAMIM YAHYA, & SHRI YOGESH KUMAR US

For Respondent: Shri Om Prakash, Sr. DR
Hearing: 09.12.2024Pronounced: 10.12.2024

ORDER

PER SHAMIM YAHYA, AM :

1.

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.

2.

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.

3.

Against the aforesaid order, assessee is in appeal before us.

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