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TMI Blog2022 (11) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1). The income which was reflected in the 26AS is a gross turnover. So, the addition made on basis of the reflection in 26AS without allowing reasonable opportunity to the assessee. But the ld. AO suo motu added back the amount which is violation of the natural justice. After respectfully considered the catena of judgment as mentioned above, the addition amount is arbitrary and bad in law. The ld. AO had acted beyond the jurisdiction related to this addition. Here, the order passed u/s 143(1) is bad in law. So the addition made by the ld. AO amount is liable to be quashed. - I.T.A. No.48/Asr/2022 - - - Dated:- 11-11-2022 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : Sh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluru while processing the return u/s 143(1) vide order dated 11.12.2018 while rejecting the contention of the assessee that the amount of Rs. 8,86,320/-, being the gross receipt of cleaning of solar modules cannot be charged to tax as income and only the profits embedded in the gross receipts are liable to be charged to tax on account of principle of law as settled by the Hon ble Gujrat High Court in the case of CIT vs President Industries 258 ITR 654. 3. That the Ld. CIT(A), NFAC erred on facts and law in confirming the addition of Rs.8,86,320/- made by the DCIT, CPC, Bengaluru while processing the return u/s 143(1) vide order dated 11.12.2018 while rejecting the contention of the assessee that the amount of Rs. 8,86,320/-, being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06/-. The TDS was deducted on the on the income amount of Rs.2490/-. The assessee had not included this income, received from party in total income and had not claimed the TDS in the return of income. The income is in the nature of business. The ld. AO had calculated the turnover of this income amount of Rs.8,86,320/- by method of back calculation and added back with the total income during the processing of the return U/ 143(1) of the Act. The assessee filed an appeal before the ld. CIT (A) against the order of ld. AO. The ld. CIT(A) accepted the income and upheld the order of the ld. AO. Aggrieved assessee filed an appeal before us. 5. The moot point of the appeal is agitated by the assessee which is as follow; i). The legal issue, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determining the income on a presumptive basis under section 44AD either at 6% or 8% as the case may be, as claimed by the appellant does not arise at this stage, in the absence of discharge of the burden of proof by the assessee explaining the circumstances under which the omission to record receipts and claim tax credit with simultaneous omission to record the expenditure as well. Therefore, the adjustment made as per the intimation u/s 143(1), which is sanctioned as per law does not call for any interference. Besides, since the issue is fact based, the adjudication on the relevance of the judicial precedents relied upon by the appellant, does not arise. 5.3 The ld. Counsel, during his argument and relied on the judgment of Bajaj Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PC stands deleted. 5.4 The assessee further relied on the instruction of the CBDT related to processing of return u/s 143(1), Instruction 1814 dated 04.04.1989 the specific point no. 3 is inserted as below: 3. For the purposes of computing the tax or interest payable by or refundable to the assessee the following adjustments are required to be made, under the proviso to sub-clause (a) of sub-section (1) of section 143 to the income or loss declared in the return :- i. Any arithmetical error in the return, accounts or documents accompanying it shall be rectified. ii. Any loss carried forward, deduction allowance or relief which on the basis of the information available in such return, accounts or documents is prima fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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