2026 (3) TMI 611

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.... and in the circumstances of the case and in law, the Ld.CIT(A) is correct in holding the power in quashing the adjustment made u/s 143(1)(a) of the Act merely on the ground that prior intimation for adjustment was not given to the assessee. In doing the Ld.CIT(A) failed to appreciate that the intimation could not have been quashed merely on a procedural irregularity?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is correct in quashing the adjustment made u/s 143(1)(a) of the Act, disregarding the fact that the consequential grounds no. 2 to 6 were adjudicated on merits, thus, adjudication in ground no 1 becomes contradictory to the adjudication in ground no. 2 to 6 and resulting in deleti....

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....he second contention of the assessee was, the bad debts recovered was duly credited to the profit and loss account and was offered as income. Therefore, further addition of the same amount would amount to duplication of addition. 7. After due examination of submissions made by the assessee, in the context of facts and materials on record, ld. first appellate authority found substantial merit in them. He held, the CPC could not have made the adjustment without issuing a prior show cause notice to the assessee. Even on merits, ld. first appellate authority deleted the addition having found that the bad debt recovered has been recognized in the profit and loss account. 8. We have heard Shri Annavram Kosuri, learned Senior AR appearing fo....

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.... well. It is a fact on record that in the year under consideration, the assessee had recovered an amount of Rs. 2,88,06,410/- towards bad bets written off earlier. It is the say of the assessee that the amount so recovered was credited to the profit and loss account of the year under consideration and offered as income. Upon examination of financial statements of the assessee for the year under consideration, we are convinced with submissions made by the assessee. On a query from the bench to demonstrate that the amount in dispute was credited to the profit and loss account, the assessee has furnished the break up with reference to Schedule 14 and Schedule 17 to the profit and loss account of the financial statement, as under: DBS Bank I....