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TMI Blog2024 (7) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act was passed which entirely violated the 2 nd Proviso of section 143(1) of the Act. In our considered view, the Ld.AO passed the order beyond the jurisdiction and liable to be quashed. Accordingly, the impugned appeal order is set aside and the addition is deleted. As the legal ground of the assessee is succeeded, the ground on merit is only remain for academic purposes. - Shri Prashant Maharishi, Accountant Member And Shri Anikesh Banerjee, Judicial Member For the Assessee : Ms. Aarti Vissanji Prabhudesai For the Respondent : Shri Manoj Kumar Sinha (SR.DR.) ORDER PER ANIKESH BANERJEE, J.M: Instant appeal of the assessee is preferred against the order of the Learned Commissioner of Income-tax Addl / JCIT(A)-1, Hyderabad [for brevity, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , amount thereof and name(s) of the Firms in which the appellant is a Partner in ITR and Tax Audit Report duly uploaded within the prescribed time in compliance with applicable provisions of the Act. Without prejudice to Ground No. 1 above and in the alternate: 2. In the facts and in the circumstances of the case and in law, the Ld. CIT(A) ought to have held as under: (a) Keeping in view the infirmities as mentioned in Ground No. 1 of the appeal before the Ld. CIT(A), the Intimation passed by the Ld. ADIT, CPC is bad-in-law. (b) The appellant's claim of exemption u/s. 10(2A) of the Act representing the share of profit (net of loss) derived in the capacity as a Partner of the Firm(s) as detailed hereunder inclusive of for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on deduction claimed u/s 10(2A) of the Act. Within two days after the issuance of intimation, the order u/s 143(1) was issued. The grievance of the assessee is on both legal ground and on merit of the case. The claim of deduction u/s 10(2A) is related to share of profit from partnership firm is purely exempt under the Act. Further, ld.AO violated the second Proviso of section 143(1) of the Act. Being aggrieved, the assessee filed an appeal before the Ld.CIT(A). The Ld.CIT(A), after hearing the assessee, upheld the assessment order. Being aggrieved, the assessee filed an appeal before us. 4. The Ld.AR filed a written submission which is kept in record. The Ld.AR first argued that the intimation for adjustment of demand duly informed to asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21. 4. The quantum of share of profit admitted in the appellant's financial statements and those in the concerns is non-verifiable and according to the appellant, they are different. 5. The share of profit is has been claimed exempt from tax u/s 10(2A) of the IT Act in the return but appellant has failed to prove the same by one way not submitting the returns of the firms from which the share of profit was stated to have been earned and on the other hand submitting the self contradictory statement that the profit was earned in two years and claimed in the year under consideration. Thus, the appellant's claim is prima facie wrong. 6. Thus, there no infirmity in the intimation made by the CPC and accordingly, it upheld and the claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely violated the 2 nd Proviso of section 143(1) of the Act. Here, a quick look on section 143(1) of the Act and 2nd Provision as below:- 143. 18 [(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; 23 [***] (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; [(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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