SRI ALAGENDRA AUTOMOBILES P. LTD,MADURAI vs. DCIT, MADURAI

The assessee has filed return of income of 09.10.2022 showing total income at Nil. The CPC, Bengaluru has computed the total income at Rs. 6,24,682/-. The assessee has contended that in the return of income ITR 6 filed, the assessee has entered the figure of gross profit of Rs 6,24,682 in Part A – Trading Account , but the gross profit has not been carried forward to next schedule Part-A P&L and administrative, depreciation and other expenses omitted due to connectivity issue and the CPC has wrongly taken income at Rs.6,24,282/- without considering the Form 3CD report, where the assessee has shown a loss of Rs. 17,38,729/-. On appeal, the Ld. CIT(A) has dismissed the appeal as the CPC has processed the return based on the entry available in ITR.

The Ld. Authorized Representative (A.R) of the assessee has argued that the Ld. CIT(A) has failed to appreciate that due to technical glitch, the figure typed by the assessee in the profit and loss account was not reflected in the ITR. However, the same were available in the profit and loss account enclosed with the Form 3CD.

The Ld. Departmental Representative (DR), on the other hand, relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. The CPC, Bengaluru has processed the return based on the entry in ITR, without considering the profit and loss account and Form 3CD filled along with the return. The CPC has taken all figures at Nil filled by assessee and taking gross profit as total income. We are of the opinion that matter should be sent back to AO to process the return after considering the profit and loss and Form 3CD filled by assessee. The AO may call for any other information required from assessee to process the return.

In the result, the appeal filed by the assessee is allowed for statistical purposes.