Divya Dugar Vs ITO (ITAT Kolkata)
Assessment was completed u/s 143 (1) by making additions of Rs. 2,52,31,516/- and Rs. 14,65,957/- on account of income credited to profit and loss account under “Capital Gains” and “other sources” respectively, is more than whatever amount was shown in the schedule for Capital Gains in the return. CIT (A) deleted addition of Rs. 14,65,957/- but confirmed income of Rs. 2,52,31,516/-.
It was argued on behalf of the assessee that the action of AO amounts to a double addition as the claiming of Capital Gains was accurately
tendered in the Return of Income. AO (CPC) was wrong in not intra head adjustment Profit on sale of investment at Rs.2,52,31,516/-, which is already considered as income of capital gain, therefore, the total income under head business or profession has been increased, which amounts to double additions.
Finally, it was concluded by the ITAT that it is not visible whether the appellant was served a notice proposing enhancement by AO. First proviso to section 143 (1) (a) AO must give an intimation to the assessee and second proviso reveals out that any response received from the assessee needs to be considered before such adjustment is made. In this case provision mentioned in the above proviso did not follow by lower authorities. Hence, matter is remanded back to the file of AO.
