TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 799
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....and facts on the file in as much as he was not justified to uphold the action of the Learned Assessing Officer/Centralized Processing Centre, Bengaluru in not reducing a sum of Rs. 17,83,441/- 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 Le....
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.... business income (as evident from Row 3c of Schedule BP at page 6 of paper book) to be accounted for separately under the head capital gains. The said amount was taken into consideration while computing capital gains as is evident from Row 10(l)(a)(i) of Schedule CG at page 9 of paper book. However, Centralized Processing Centre, Bengaluru while framing the assessment had reduced a sum of Rs. 2,06,559/- from business income instead of Rs. 19,90,000/-. The difference thereof amounting to Rs. 17,83,441/- (Rs. 19,90,0000 - Rs. 2,06,559) has been added to the income while making such prima facie adjustment u/s 143(1) of the Act. 5.1 It was submitted that as a matter of fact, it was only the sale consideration on account of sale of immovable pr....
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....Income Tax (Appeals) and not rectification u/s 154. Hence, the appeal was dismissed stating that the adjustment made by Centralized Processing Centre, Bengaluru was not under the ambit of Section 154. Against the said order, the assessee is now in appeal before the Tribunal. 5.5 It was submitted that the contention of the Learned Commissioner of Income Tax (Appeals)-5, Ludhiana is bad in as much as in stating that the assessee failed to act timely in filing the appeal before Commissioner of Income Tax (Appeals) whereas a request for rectification was filed on 05.05.2021 against the intimation u/s 143(1) dated 06.04.2021 which is well within 30 days being the prescribed time limit of filing of an appeal before the Commissioner of Income Tax....
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....ndi/2022. It was submitted that since the matter is squarely covered by the order of the Coordinate Bench in the case of the assessee's brother, the appeal filed by the assessee may kindly be allowed. 6. Per contra the Ld. Sr. DR submitted that the Ld. Counsel for the assessee has submitted that in the case of Sh. Rajiv Garg, the ITAT, Chandigarh Bench has allowed the appeal of the assessee vide order dated 01.12.2022 in Appeal No. ITA No. 568/Chd/2022. It has been submitted that Shri Rajiv Garg is the brother of Shri Sanjeev Garg (assessee) and both were aggrieved due to nonreduction of a sum of Rs. 19.9 lakhs from working of profits of business or profession as the said sum represents sale proceeds of immovable property, which was cr....
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....rein read as under: "8. I have heard the rival contentions and pursued the material available on available. On perusal of the assessee's return of income, computation of income, balance sheet, income and expenditure account as well as intimation issued by the CPC, I find merit in the contention advanced by the ld AR. The assessee had reduced the amount of sale consideration of Rs 19,90,000/- 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: Capital 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....
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....puting the capital gains and that too, while processing the return of income in absence of any material to the contrary available on record. In the facts and circumstances of the present case, I find that no useful purpose would be solved in remanding the matter and the adjustment so made by the CPC is hereby directed to be deleted." 9. In the instant case as well, we find that there is an adjustment to gross total income to the tune of Rs 17,83,441/- as per the intimation issued by the CPC. The said adjustment has arisen on account of capital gains which has to be segregated from profit/loss and considered under the head "capital gains". In the return of income, the assessee has reduced the sale consideration of Rs 19,90,000/- from profit....