TaxTMI 
TaxTMI 
2025 (8) TMI 967
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....e intimation order dated 13.11.2022 u/s 143(1) of the Act pertaining to assessment year 2021-22. 2. Brief facts of the case are that the assessee company engaged in the business of trading of electric security equipment systems and filed the return of income for the year under appeal on 15.03.20222, declaring NIL income after setoff of brought forward unabsorbed depreciation. The case was processed u/s 143(1) in terms of the intimation dated 13.11.2022 wherein the total income of the assessee is assessed at INR 7,24,56,285/-. The assessee has filed rectification application against the same which was rejected. The assessee had filed appeal before Ld.CIT(A) against the intimation order u/s 143(1) dated 13.11.2022. The ADDL/JCIT(A) in term....
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.... balance sheet, hence when refund is received as per law income is not impacted. Addition made by impugned order brings to tax the same income twice over. 5. That the Ld. CIT(A) has erred in confirming the action of the Ld. ADIT, CPC in making the aforesaid addition by merely relying upon the disclosure made in Form 3CD without verifying the factual aspects and in lightly ignoring that same is not chargeable under the provisions of the Act as no allowance has been claimed by the Appellant at the time of making payment of GST in earlier years. 6. Ld. CIT(A) erred in upholding the view that even items which require further verification of facts for deciding whether same are income or not, can be adjusted in exercise of juris....
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....same in Column No.16 in Form 3CD which is titled as under:- "16-amount not credited to the Profit & Loss Account, being:- (a) The items falling within the scope of section 28 (b) The proforma credits, drawbacks, refunds of duty of customs or excise or service tax or refunds of sales tax or value added tax or Goods and Services Tax, where such credits, drawbacks or refunds are admitted as due by the authorities concerned." 6. The assessee under Clause 16(b) of the Tax Audit Report reported the refund of goods and service tax of INR 7,36,09,571/- and according to Ld.AR that this amount has been treated as income of the assessee by the CPC though nowhere in the Tax Audit Report, it was certified by the Tax Audit R....
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....d perused the material available on record. It is seen that the assessee while filing the return of income has not claimed any expenditure with respect to IGST paid of which the refund was claimed. The assessee is engaged in the business of export of service where at the time of export of service, the amount of IGST is to be paid in advance and the same will be refunded after filing the necessary documents evidencing the export of services which are exempt from IGST. Therefore, the amount of IGST paid is neither claimed in the Profit & Loss Account nor was claimed as expenditure in any preceding year for which the refund could be held as the income in the year under appeal. The Tax Auditor in the Tax Auditor Report in Clause 16B has reporte....