2025 (9) TMI 33

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....is appeal has been filed against the intimation u/s 143(1) of the Act dated 08.07.2022, whereas the contention raised by the assessee are against the assessment order passed u/s 143(3) of the Act. Thus, ld CIT(A) dismissed the appeal of the assessee without considering the merits of the case. 03. The ld. Counsel for the assessee, on the other hand, submitted that in this case an intimation u/s 143(1) dated 08.07.2022 was passed ld. AO, CPC by processing the return filed by the assessee on 14.02.2022. The ld. AR submitted that the assessee has declared a total income of Rs.1,61,820/-, however, while processing the return of income, the ld. AO/CPC has wrongly added a sum of Rs.3,43,70,994/- under the head business income by overlooking the....

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....ase of the assessee was selected for complete scrutiny under Computer Assisted Scrutiny Selection (CASS) and hence, CPC transferred the rectification right to the ld. AO. 05. The ld. AR further submitted that in the assessment order passed, the ld. AO started the computation of income by taking into amount the income as determined by CPC in the intimation issued u/s 143(1) of the Act instead of taking into account the income as per the income tax return thereby ignoring the rectification application and also did not grant any opportunity of hearing to the assessee. 06. The ld. AR further submitted that the ld. AO also disallowed a sum of Rs.12,63,469/- on adhoc basis which is aggregate of disallowances made in respect of Car leased re....

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....tioned as section 143(1) of the Act on account of which the ld. CIT (A) summarily rejected and dismissed the appeal of the assessee. 08. The ld. DR on the other hand submitted that the appeal was rightly dismissed by the ld. CIT (A) when the appellate authority noticed that appeal was filed mentioning wrong section and therefore, the appeal of the assessee may be dismissed. 09. The grounds of appeal no. 1 to 7 are not pressed and accordingly not adjudicated. 010. After hearing the rival contentions and perusing the materials available on record, we find that there are three effective issues involved in this appeal (i) Addition of the same income twice i.e. first assessee suo motto offered to tax, the amount of income of Rs.3,43,70,....

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.... gain, salary, etc. We have examined the income tax return filed by the assessee and also various schedules under which these amounts of income were offered to tax. However, the ld. AO / CPC wrongly noted that these amounts as shown in the profit and loss account were not assessed to tax under the head income from business and profession and thus made addition under the head from business and profession which has resulted into double taxation of the same income which in our opinion is not permissible under the Act. Therefore, we set aside the order of the ld. CIT (A) and direct the ld. AO to delete the addition of Rs.3,43,70,994/-. The ground no. 7 is allowed. ii. So far as adhoc addition of Rs.50% motor car lease and motor car mai....