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TMI Blog2022 (12) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... e processing the return of income, adjustment has been reflected by CPC to an extent of Rs 5,79,703/- which has resulted in differential of Rs 14,10,297/- which has been retained as part of the profit/loss account and consequent net adjustment of Rs 14,10,297/-. At the same time,there is an acknowledgement by CPC that the assessee has offered net long term capital gains - therefore find that it is clearly a case where the sale consideration as credited in the profit/loss account has been reduced while computing the income under the head Profit/gains of business/profession and income under the head Capital gains has been computed separately taking into consideration the sale consideration and cost of acquisition offering net capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- from working of the profits of business or profession as the said sum represented sale proceeds of immovable property which had been credited to the Profit and Loss Account and while filing the return, the same had been duly considered under the head income from capital gains. 2. That action of the Learned CIT(A) in upholding the addition made by the Learned Assessing Officer/Centralized Processing Centre, Bengaluru has resulted in double addition of the same amount. 3. That the Learned CIT(A) was not justified in holding that the action of the Learned Assessing Officer/Centralized Processing Centre, Bengaluru in making the adjustment of Rs. 19,90,000/- was not a mistake apparent from record. 2. Briefly the facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the said immovable property for a consideration of Rs. 19,90,000/- and computing the long term capital gains at Rs of Rs. 5,79,703/- and had shown the same in the return of Income in (refer Point no. 10B of ITR-3 Form). It was further submitted that there was also a Brought Forward Long-Term Capital Loss of Rs. 35,38,925/-for A.Y. 2019-20, thus the Long-Term Capital Gain of Rs. 5,79,703/- was set-off with this Brought Forward Long-Term Capital Loss. Hence, Long-Term Capital Loss carried forward to future years after set off was Rs. 29,59,222/- (refer Schedule CFL of ITR- 3 Form). It was submitted that while processing the return of income, the amount of sale proceeds from Immovable property credited to profit loss account which were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has been rejected for the sole reason that the remedy against the action of the AO/CPC lies by way of an appeal to the CIT(A) under section 246A and not by way of filing application under section 154 of the Act. In this regard, it was submitted that relevant documents were on record before the CPC and given the nature of adjustment so made by CPC, the assessee was of the believe that it clearly qualifies as mistake apparent from the record and therefore the assessee filed an application under section 154 as soon as he received the intimation under section 143(1) of the Act. It was accordingly submitted that merely non- filing of the appeal and taking recourse to rectification under section 154 cannot be a reason to deny the lawf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- which is credited to the profit/loss account and to be considered under the head of capital gains as evident from the return of income, Schedule BP 3(b) and in Schedule CG: Caoital Gains 10(B), full value of consideration has been declared at Rs 19,90,000/- and after reducing cost of acquisition of Rs 14,10,297/-, net capital gains of Rs 579703/- has been reflected and offered to tax. In the intimation u/s 143(1), there is an acknowledgment by CPC that the assessee has carried out said adjustment to the profit/loss account to the tune of Rs 19,90,000/-, however, while processing the return of income, adjustment has been reflected by CPC to an extent of Rs 5,79,703/- which has resulted in differential of Rs 14,10,297/- which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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