TaxTMI 
TaxTMI 
2025 (11) TMI 1899
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....he intimation order dated 05.07.2022 u/s 143(1) of the Act pertaining to assessment year 2021-22. 2. Brief facts of the case are that the assessee company is a registered NBFC with the Reserve Bank of India and is engaged in providing financing services to its customers, primarily for purchase of two wheelers. Return of income was e-filed on 14.03.2022, declaring income at NIL and claimed carry forward of current year's total loss of INR 18,19,72,248/-. The assessee received a show cause notice dated 14.04.2022 from CPC for proposed adjustment u/s 143(1)(a)(iv) of the Act. In response, a reply was submitted wherein the assessee expressed its disagreement to the proposed adjustment by stating that proposed adjustment of Rs. 14,45,64,5....
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.... addition leads to double taxation of the same income of the Appellant, which is wrong and totally unlawful. 3. That on the facts and in the circumstances of the case and in law, the Ld. ADDL/JCIT has erred in passing the appellate order on the basis of incorrect facts wherein it has been assumed that certain expenses were to be disallowed by the Appellant as per the Tax Audit Report, whereas the matter in the appeal pertains to the amount of income tax twice in the hands of the Appellant. 4. That on the facts and in the circumstances of the case and in law, the Ld. AO and the Ld. ADDL/JCIT has erred in reducing the current year's loss by INR 14,45,64,504. Also, the total losses carried forward to future years to NIL i....
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.... page 136 wherein at "Note No.22" to the Balance Sheet, under the head "Other Income" assessee has declared income in following items: (i) Liability/provision no longer required written back: Rs. 84.85 lacs (ii) Recovery of sums written off in in previous years : Rs. 1360.79 Lacs 8. Ld. AR also refer page 27 of the paper book which is the part of ITR filed where assessee has shown the above items as income. He submits that in the tax audit report, the auditors have reported these amounts in item No. 25 specified for "Any amount of profit Chargeable to tax under section 41 and computation thereof" which is available at paper book pages 175-176. Ld. AR submits that in response to the show cause issued by CPC before making....
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.... (specify nature and amount)", assessee has duly declared both the amounts which are written back and credited to the Profit & Loss account as income as per section 41(1) of the Act. The relevant page is 27 of the paper book filed by the assessee. It is also seen that assessee vide response filed against the show cause issued by CPC has given its disagreement and filed following response: "INR 14,45,64,504 represents the amount of liabilities written off which were claimed as expenses in earlier years. It qualifies as income u/s. 41 of the Act, however, it has already been credited in the P&L under the head 'Other Income" in Note 22 of Financial Statements. Therefore, there is no requirement of separately adding such an amount ....