Loading judgment…
Facts
The assessee filed its return of income showing Nil income. However, the CPC computed the total income at Rs. 6,24,682/-. The assessee contended that due to a technical glitch, the gross profit was not carried forward and that the CPC wrongly considered the gross profit as total income without considering the Form 3CD report, which showed a loss.
Held
The Tribunal noted that the CPC processed the return based on the entries in the ITR without considering the profit and loss account and Form 3CD. The Tribunal was of the opinion that the matter should be sent back to the AO for re-processing the return after considering all relevant documents.
Key Issues
Whether the CPC was justified in processing the return based on ITR entries without considering the profit and loss account and Form 3CD due to a technical glitch?
Sections Cited
143(1), 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI MAHAVIR SINGH & SHRI JAGADISH
Sri Alagendra Automobiles P. Ltd., The Dy. Commissioner of 177/1, North Veli Street, Vs. Income Tax, Madurai – 625 001. Non-Corporate Circle-1, Madurai. [PAN: AACCA 2289C] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथF की ओर से/ Appellant by : Shri J. Saravanan, Advocate HIथF की ओर से /Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/Date of Hearing : 17.10.2024 घोषणा की तारीख /Date of Pronouncement : 17.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, Appeal, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 29.02.2024 confirming the addition of Rs. 6,24,682/- in the intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) passed by CPC, Bengaluru. :- 2 -:
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. AR therefore, requested that the case may be set aside to the A.O for re-processing the return. :- 3 -:
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.
Order pronounced in the open Court on 17th October, 2024. (महावीर िसंह) (जगदीश) (Jagadish) (Mahavir Singh) उपा" / Vice President लेखा लेखा सद"य लेखा लेखा सद"य सद"य /Accountant Member सद"य चे"ई/Chennai, "दनांक/Dated: 17th October, 2024. EDN/- :- 4 -: