2025 (6) TMI 469

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....come under section 41 of the Act Rs. 9,755/-. c) Disallowance of bad debts written off in books Rs. 44,52,219/- d) Carry forward current year loss Rs. 8,83,13,516/- 2. The appellant company during appeal proceedings before the ITAT has contended that the above four additions cannot made under section 143(1) as they are debatable. Second legal ground taken by the appellant company is that, with respect to 3rd and 4th issues ("c" and "d" above), the CPC made disallowances without giving any opportunity and the order of CPC under section 143(1) should be quashed. For these arguments, the Ld. AR of the appellant relied on certain cases-law. 3. The Ld. DR relied on the orders of Ld. CPC and Ld. CIT(A). 4. To start with....

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.... will not make the order invalid and to be quashed. The principles of natural justice can be supplied at any time. The Ld. CIT(A) gave opportunity of hearing and confirmed the addition. In fact, in several cases, this Bench has restored the matter to the Department with a direction to give an opportunity to appellant, wherever opportunity is not given to the appellant but assessment order was not quashed on this ground. In several such cases, the ITAT has only remanded the case back to the Department, where appellant has not appeared/not responded, but the additions made were never confirmed on the premise that appellant has not responded. On the same yardstick, if Department has not given an opportunity, directions were given to give oppor....

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.... take action accordingly. b) The second addition made by the CPC relates to "Deemed income under section 41 of the Act". The Ld. AR of the appellant states that the amount is already offered in Income Tax Return. The Ld. AO is directed to verify the same and if already offered as income, the addition should be deleted as it amounts to double deduction. c) Disallowance of bad debts written off. The Ld. AO is directed to examine whether these bad debts are written off in the books of account and if so, the amount should be allowed as deduction, as laid down in the case of TRF Ltd. (323 ITR 399)(SC). d) The last issue to be decided relates to carry forward loss. The claim of appellant is that the loss was not carried....