TaxTMI 
TaxTMI 
2025 (11) TMI 1407
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....s of the case are, assessee filed its return of income for AY 2018-19 on 21.09.2018 declaring total income at Rs. nil under the normal provisions and declared profit of Rs. 5,57,01,251/- as per the provisions of section 115JB of the Income-tax Act,1961 (for short 'the Act') The return of income was processed u/s 143(1) of the Act on 21.12.2019, wherein the total income is computed at Rs. 7,08,56,368/-. In computing the total income, the set off of business loss of Rs. 12,03,32,271/- was not allowed. 3. Aggrieved, assessee filed a rectification application u/s 154 before the CPC. However, the CPC vide order dated 21.12.2019 has intimated the assessee that rectification rights have been transferred to Jurisdictional Assessing Officer (JAO)....
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.... Rs. 12,03,32,271/- was not allowed. Further assessee also filed a rectification. It was also brought to the notice of the ld. CIT (A) that assessment u/s 143(3) was completed, however the AO chose to retain the demand as per section 143(1) of the Act and prayed that the order passed u/s 143(1) is merged with assessment order u/s 143(3). 6. After considering the detailed submissions of the assessee, ld. CIT (A) rejected the plea of the assessee with the observation that Assessing Officer has not made any addition in the assessment order completed u/s 143 (3) and has accepted the computation of capital gains and details of income filed by the assessee. However, for computing the total income, the Assessing Officer has determined the incom....
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...., seeking evidence of purchase and sale of Mayapuri property, explanation of the Appellant was sought why the difference between sale consideration of Rs. 19,70,00,000/- and Rs. 18,60,97,760/- be not added to the income. 2.2 That on the facts & circumstances of the case and in law, CIT(A) did not appreciate that since the Assessing Officer had maintained the adjustment (addition) made by the intimation dated 21.12.2019, therefore, merely because there was no discussion in the assessment order, it cannot be said that the issue does not emanate from the assessment made. 2.3 That on the facts & circumstances of the case and in law, CIT(A) did not appreciate that Sadish Paul v. DCIT [ITA No.787 /Chy/2025 dated 11.06.2025] was ....
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....he 'row 3b' relating to capital gains. He submitted that assessee did not have any income under the head 'income from other sources' except declared income under the head 'capital gains'. The mistake was apparent, however, CPC has proceeded to complete the assessment u/s 143(1) based on the return of income filed by the assessee. Assessee also filed application u/s 154 of the Act. Further he submitted that the assessment u/s 143(3) was completed accepting the return of income and computation of income filed by the assessee without making any adjustment. However, the Assessing Officer has retained the profit determined u/s 143(1) even though he has not found any mistake in the return of income filed by the assessee. He submitted that the pro....
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....essing Officer while completing the regular assessment accepted the same and not proposed any adjustment based on the information submitted before him. However, he retained the adjustment made u/s 143(1) even though the assessee has brought to the knowledge that CPC has intimated to them that rectification rights are passed on to JAO. In our considered view, Assessing Officer should have considered the plea and made the rectification in the order passed u/s 143(1). Aggrieved with the above order, when assessee preferred an appeal before the ld. CIT (A), ld. CIT(A) rejected the plea of the assessee with the observation that the issue under consideration is relating to section 143(1) since assessee has filed the appeal against the order passe....