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TMI Blog2023 (9) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... e prescription of Instruction No.10/2017, which is binding on the Departmental Officers. We, therefore, hold that the ld. CIT(A) was not justified in confirming the disallowance contrary to the mandate and ambit of section 143(1)(a)(vi) - The impugned order is overturned to this extent. Once it is held that the adjustment could not have been made in terms of section 143(1)(a)(vi) to the returned income in respect of presumptive income declared u/s. 44AD, naturally, there was no reason to rectify the already and correctly rectified Intimation for reaching a fresh conclusion that the adjustment made in the original Intimation u/s. 143(1) was correct and the rectification order was not passed correctly. We, therefore, set-aside the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nwarranted because the assessee had shown income in terms of section 44AD, being, special provision for computing profits and gains from business of trading in certain goods. The ld. CIT(A) did not concur. 3. ITA No.939/PUN/2023 is a connected matter inasmuch as the assessee filed rectification application against the above referred intimation u/s. 143(1) contending that she filed the return computing income u/s. 44AD and the intimation u/s. 143(1) wrongly took note of section 44ADA, which was incorrect. The AO got convinced and passed the rectification order accordingly. Thereafter, again a rectification order was passed suo motu by the AO on 22-01-2021 rectifying the original rectification order by holding that the total receipts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration. In this regard, it would be fruitful to note that the CBDT issued Instruction No.10/2017, dated 15-11-2017 in the context of processing of income-tax returns u/s. 143(1)(a)(vi). Para 3.2 of the Instruction provides that: if the receipts under these heads are completely omitted from the return, then the provisions of section 143(1)(a)(vi) shall be applicable . It is observed that the total receipts as per Form No.26AS amounted to Rs. 1,38,19,548/-, as has been mentioned in the Intimation u/s. 143(1). The assessee declared gross receipts at Rs. 1,38,78,040/- in the computation of total income. It is unambiguous that the amount of gross receipts declared by the assessee is neither `completely omitted nor understated vis- -vis the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipts as per the three Forms, intimation proposing adjustment would be issued . Main part of the para applies to the case under consideration but not the exception because the gross receipts from the presumptive business shown by the assessee u/s. 44AD are more than gross receipts in Form No.26AS. To sum up, the position is that the assesee filed return declaring total income u/s. 44AD; the gross receipts for the application of section 44AD exceeded the amount as per Form No.26AS; and the AO issued intimation by invoking clause (vi) of section 143(1)(a). In such circumstances, the Intimation, making adjustment by invoking clause (vi) of section 143(1)(a), is evidently debarred as violating the prescription of Instruction No.10/2017, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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