2025 (4) TMI 1040

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....ectification orders passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Years 2020-21 & 2021-22. Since common issue is involved in both the cases for the sake of convenience the same are disposed of by this common order. ITA No. 1996/Ahd/2024: 2. Brief facts of the case is that the assessee filed a Revised Return of Income for the Asst. Year 2020-21 on 31-03-2024 declaring total income Nil and claiming refund of Rs. 53,57,317/-. The CPC computed the refund at Rs. 52,96,280/-. Subsequently a rectification order was passed u/s. 154 of Act on 15-12-2022 assessing the total income at Rs. 2,25,24,390/- thereby disallowing depreciation of Rs. 2,20,85,844/- and late payment of Pr....

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....Tax Audit Report is derived of "Other Income". Note 29 in the Profit & Loss account for A.Y. 2020-21, the income of Rs. 1,07,54,026/- is not excluded from business income. Thus income of Rs. 1,07,54,026/- is offered to tax in the return filed for A.Y. 2021-22. Hence, there is no inconsistency. Thereafter the assessee was not served with any intimation u/s. 143(1) but rectification order u/s. 154 of the Act dated 08-11-2022 was passed reducing the refund claim to Rs. 11,07,620/- as against the claim of Rs. 45,76,850/- by making disallowance: (a) Business income u/s. 41 of the Act Rs. 1,07,54,026/- (b) Diallowance u/s. 36(1)(va) Rs. 33,25,771/-. 7. Aggrieved against the rectification order, assessee filed an appeal before Ld. CIT(A) wh....