2026 (3) TMI 360

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.....2025, which is invalid,nullity and may kindly be quashed. 2.1. The facts in brief are that the ld. PCIT upon perusal of the assessment records observed that assessee has claimed depreciation on car, car insurance and car loan interest aggregating to Rs. 1,12,423/- and whereas the assessee has shown income of Rs. 1,44,000/- from car hiring charges u/s 44AD of the Act and therefore not entitled to any deduction. According to ld PCIT, the ld. AO has failed to add the said amount of Rs. 1,12,423/- to the total income of the assessee. Similarly, the assessee has claimed Rs. 2,34,442/- as expense in the audited profit and loss account in respect of forfeiture of earnest money deposit which is capital receipt and is not allowable u/s 37 of the....

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.... of forfeiture of Bid Security or EMD. Therefore, the assessee submitted that this is a security given in the ordinary course of business and cannot be treated as capital expenditure when forfeited by the coal companies. The assessee even submitted that the copy of EMD forfeiture invoices issued by Eastern Coalfields Limited worth of Rs. 2,34,442/- on which they mention it as "supply of services'. Therefore, finding of ld. CIT (A) is wrong that there was no mistake in the assessment order. Finally, the ld. PCIT revised the assessment by directing the ld. AO to frame the assessment afresh after affording reasonable opportunity of hearing to the assessee by recomputing the income after adding the said amount as referred to above. 2.3. Afte....