9911796707
TMI Blog2024 (8) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year under consideration as well as filed the necessary information/documentation in support thereof. The matter was therefore examined during the course of assessment proceedings and while passing the assessment order, no adverse finding has been recorded by the AO which means that the claim of the assessee has been examined and duly accepted by the AO. While computing the income, the AO took the figure of income as computed u/s 143(1) of the Act which in normal course would be the right basis but in the facts of the present case, where there was adjustment on account of ICDS as per intimation u/s 143(1) and thereafter, the matter relating to ICDS adjustment was subject matter of examination and in fact, duly examined and accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of actual incurrence of the said losses and the same was disallowed in the previous year on provisions basis. Regarding non mentioning of the same in the return of income, it was submitted that the same has been inadvertently omitted to be shown in other information. It was submitted that the said response was not considered by CPC, Bangalore and intimation dt. 04/11/2019 under section 143(1) was issued after making the adjustment of Rs. 3,52,475/-, 2.2 It was further submitted that the assessee thereafter moved an application under section 154 against the intimation under section 143(1) on 17/10/2020 before the DCIT, Central Circle, Patiala. However no action was taken by the DCIT, Central Circle, Patiala for the apparent reasons that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nish the documentary evidence in support of actual transaction of loss on future trading and in response, the assessee vide its submission dt. 23/04/2021 submitted the documentary evidence and the computation of loss incurred in such transaction. 2.6 It was submitted that the assessment order was thereafter passed under section 143(3) dt. 27/09/2021 in which no adverse finding has been recorded by the AO, thereby accepting the claim of the assessee. It was however submitted that while computing the income, the AO took the income as computed under section 143(1) of the Act instead of income as per return of income wherein the CPC, Bangalore already made the adjustment towards the ICDS. 2.7 It was submitted that the assessee thereafter again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 4. In the aforesaid background, it was submitted that right from the time, the proposed adjustment was intimated by the CPC, Bangalore, the assessee has been stating that the ICDS claim is allowable and has been claimed on actual basis. It was submitted that the assessee has moved rectification application against the intimation under section 143(1) however given the fact that the assessment proceedings were initiated at that time, the AO did not dispose off the rectification application and proceeded with examining the said issue which was also one of the reasons for selecting the case for scrutiny. During the course of assessment proceedings, necessary information and documentation were submitted and no adverse finding has been record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee against the intimation dt. 04/11/2019 and therefore the assessee failed to act timely to file the appeal against the intimation under section 143(1) of the Act and as no grievance arises out of the order passed under section 143(3) of the Act. Accordingly, the rectification application dt. 24/12/2021 filed after passing the said order has been rightly rejected by the AO since there was no mistake apparent from the record which could be rectified in terms of Section 154 of the Act. It was submitted that the right course of action for the assessee was to file appeal before the Ld. CIT(A) against the intimation dt. 04/11/2019 but the same was not done by the assessee and therefore, the assessee could not take advantage of its own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the present case, where there was adjustment on account of ICDS as per intimation u/s 143(1) and thereafter, the matter relating to ICDS adjustment was subject matter of examination and in fact, duly examined and accepted during the course of assessment proceedings, the AO should have considered the income after deleting the adjustment as per intimation u/s 143(1) of the Act which apparently has not happened in the instant case. We therefore find that the facts are crystal clear and apparent from record that the adjustment towards the ICDS has not been deleted by the AO while computing the income whereas the same was duly examined and accepted during the course of assessment proceedings. In view of the same, we set-aside the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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