2026 (2) TMI 709

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....e of Rs. 3,93,87,570/- on 27.01.2021. While filing the return of income the assessee had disallowed expenses of Rs. 8,54,970/- in part A other information. The return of income was processed u/s 143(1) of the Act and intimation was passed on 15.02.2021. In the above said intimation, assessee observed that the Assessing Officer has disallowed the Rs. 8,54,970/- which was shown in different clause of the return of income and audit report u/s 44AB of the Act. Assessee with the bona fide belief deposited the demand of Rs. 2,90,398/- on 30.03.2022 against the demand raised along with interest. Further assessee observed that against the same demand of AY 2020-21, Income Tax refund for AY 2021-22 was also adjusted for an amount of Rs. 2,98,854/-. ....

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....further demand raise by the AO u/s 154 may be allowed if found appropriate. Accordingly, he remitted the above said ground to the file of Assessing Officer for statistical purposes. 6. Aggrieved with the above order assessee is in appeal before us raising following grounds of appeal: 1. The Ld CIT(A) has erred in upholding double addition of Rs. 8,54,970/- u/s 37(1) of IT Act ignoring the fact that the above figure has been reported and added to total Income under section 40 of I.T. Act in ITR (Any Other disallowance) and u/s 37(1) in Tax Audit Report/ FORM 3CD. 2 The Ld CIT(A) has erred by relying on the case law of ITA No.583/Chny/2024, ITA No.584/Chny/2024 and ITA Nos. 1104/Chny/2024, which are based on totally diffe....

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....owance suo moto and Assessing Officer also made similar disallowance which amounts to double disallowance. Further he brought to our notice page 12 of the appellate order wherein Ld. CIT(A) has dismissed the grounds raised by the assessee on the reason that the additions were made in intimation u/s 143(1) of the Act and assessee should have contested the same against the above said order instead of filing appeal against Section 154 order. He submitted that the rectification order u/s 154 was also passed by the CPC against the same addition made by the Assessing Officer u/s 143(1) of the Act. Therefore, there is direct connection with the rectification order passed by the Assessing Officer. Therefore, it is an appealable order, dismissing th....