2025 (11) TMI 1849

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....d with sections 143(3A) and 143(3B) of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], dated 15.01.2021, for the Assessment Year 2018-19. 2. Facts of the Case 2.1 The assessee filed its original return of income on 30.09.2018 which was revised on 30.03.2019 declaring a total income of Rs. 17,39,06,700/-. The return was processed under section 143(1) on 20.02.2020, resulting in determination of tax liability. Subsequently, the case was selected for Limited Scrutiny under the E-assessment Scheme on the issue "Expenditure by way of penalty or fine for violation of any law." The assessment was thereafter completed under section 143(3) read with sections 143(3A) and 143(3B). The Assessing Officer recorded that the only iss....

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....set. The CIT(A) noted that the assessment was completed on the basis of the returned figures and that the assessee's claim amounted to raising a new claim for the first time in appellate proceedings, without the backing of a revised return. Consequently, the CIT(A) dismissed the appeal as not maintainable and upheld the assessment order in toto. 3. Aggrieved by the order of CIT(A), the assessee is in appeal before us raising following grounds: The learned CIT (A) erred in confirming addition of Rs. 4,83,894 being profit on sale of assets (vehicle). Your appellant submits that the Company has already deducted the amount of sale consideration towards the vehicle which is Rs. 5,60,000 from the Block of Vehicles. The net bo....

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....itten down value. It was submitted that taxing the so-called "profit on sale" of Rs. 4,83,894/- again results in double taxation, which is contrary to the scheme of section 32 read with section 43(6)(c) and Rule 5. 3.2 The AR placed reliance on the ITR extract evidencing reduction of Rs. 5,60,000 from the relevant block in the depreciation schedule, and also furnished ledger accounts of the vehicles sold, namely "Vehicle Magna Hyundai I-20 Car" and "Vehicle Toyata Innova 5329", showing the opening balances, sale entries, and depreciation recorded in the books. The computation sheet filed with the return of income, as well as the assessment order and related documents, were also placed before the Bench. 3.3 The learned AR submitted tha....

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.... computing the written down value in accordance with Section 43(6)(c) of the Act. The ITR depreciation schedule placed on record clearly shows that the amount of Rs. 5,60,000/- has been reduced as "consideration or other realization" while computing the admissible depreciation for the year. This fact has not been disputed by the Assessing Officer. 5.2 It is also evident from the books of account, as reflected in the ledger accounts of "Vehicle Magna Hyundai I-20 Car" and "Vehicle Toyota Innova 5329", that the assessee has credited the accounting profit arising on sale of these vehicles. The profit amounting to Rs. 4,83,894/- was the difference between the net book value as per companies' accounts (Rs.76,106/-) and the sale consideration ....