Assessment proceedings examined assessee's claim relating to ...

Tax officer's oversight: ICDS adjustment wrongly considered despite examining & accepting assessee's claim.

Case Laws     Income Tax

August 22, 2024

Assessment proceedings examined assessee's claim relating to ICDS adjustment made in intimation u/s 143(1). AO issued notices seeking information, assessee provided explanations and documentation supporting claim. AO passed assessment order without adverse findings, indicating acceptance of assessee's claim. However, while computing income, AO considered figure from section 143(1) intimation without deleting ICDS adjustment, despite examining and accepting assessee's claim during assessment proceedings. ITAT found AO should have deleted ICDS adjustment after duly examining and accepting assessee's claim. Consequently, ITAT set aside CIT(A)'s order and directed deletion of ICDS adjustment, allowing assessee's appeal.

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