M/S. SHREE PRAKASH TRACON PVT. LTD.,KOLKATA vs. I.T.O., WARD - 5(1), , KOLKATA

Though the assessee has raised various grounds of appeal in the memorandum of appeal but during the course of hearing, the counsel of the assessee only pressed a legal issue that the order passed by the ld. AO is bad in law and addition made without jurisdiction as no addition was made for those items which were subject matter of reasons recorded u/s 148(2) of the Act.

The order u/s 148A(d) of the Act was passed by the AO and notice u/s 148 of the was issued on 7.4.2022. The assessee filed the return ofm income in compliance thereto on 6.6.2023 declaring total income of Rs. 30,64,820/-. The statutory notices were duly issued and served on the assessee. The assessee complied with the said notices. The ld. AO on the basis of the said reply did not make any addition qua item as was subject matter of the notice issued u/s 148A(b) of the Act, copy of which is available at page no.2 of the Paper Book. However, he made disallowance of expenses u/s 69C of the Act being unexplained to the tune of ₹28,33,609/-. The appeal of the assessee was partly allowed by the ld. CIT (A) by confirming the addition to the tune of ₹50% of expenses and deleting the remaining 50%.

After hearing the rival contentions and perusing the documents available on record, we find that the ld. AO undisputedly did not make any addition in respect of the items of income which were subject matter of the notice u/s 148A(b) and order u/s 148A(d) of the Act . The copy of the notice issued u/s 148A of the Act in clause (b) with annexure is available at paper book page no.1-2. We note that the

In the result, the appeal of the assessee is allowed.