M/S. SAHA TEXTILE,KOLKATA V. DCIT, CIRCLE 49(1), KOLKATA

ITA 465/KOL/2025

AI Insights

The case involves M/s Saha Textile appealing against the order of the Commissioner of Income-tax (Appeals) which upheld the addition of \\u20b91,29,871 as income under section 41 of the Income Tax Act, 1961, due to cessation of trade liability. The assessee argued that this amount was already included in their return of income under 'other income' and was thus taxed. The Tribunal agreed with the assessee, noting that the income was offered suo-motto in the return, and found the addition by the AO to be a case of double taxation. Consequently, the Tribunal set aside the CIT(A)'s order and directed the deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711938 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: S.K. PRANSUKHA
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.465/KOL/2025 (Assessment Year:2021-22) M/s Saha Textile 29, KB Bose road, Kolkata-700124, West Bengal Vs. DCIT, Circle-49(1) Aaykar Bhavan, Uttarapan Complex, Ultadanga Maniktala Civic Centre, Kolkata-700054, West Bengal (Appellant) (Respondent) PAN No. ABYFS8639J Assessee by : Shri S.K. Pransukha, AR Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 19.05.2025 Date of pronouncement: 22.07.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) (hereinafter referred to as the “Ld. CIT(A)”] dated 29.10.2024 for the AY 2021-22. 02. At the outset, we observe from the appeal folder that the appeal is delayed by 63 days by the assessee for which the condonation petition along with affidavit is filed before us. After hearing both the sides and perusing the contents of the affidavit, we are inclined to condone the delay by considering the reasons for delay to be bonafide and genuine. 03. The issue raised is against the order of ld. CIT (A) upholding the confirmation of addition of ₹1,29,871/- as made by the AO u/s 41 of the Act being cessation of trade liability. Printed from counselvise.com Page | 2 ITA No.465/KOL/2025 M/s Saha Textile; A.Y. 2021-22 04. After hearing the rival contentions and perusing the materials available on record, we find that in this case the assessee has filed the return of income on 14.03.2022, which was processed u/s 143(1) of the Act on 25.10.2022, wherein an addition of ₹1,29,871/- was made. The said addition was made on the basis of tax audit report specifically para no.25 wherein the auditors have reported that the amount chargeable to tax u/s 41 of the Act at ₹1,29,871/-. We note that from the perusal of profit and loss account that the same has been included by the assessee under the head other income. The breakup is available at schedule no.8 of the audited accounts, which clearly showed that the sundry balances written back of ₹1,29,871/- were included therein. Therefore, the income has been offered to tax by the assessee suo-motto in the return of income. The AO/ CPC by making addition of ₹1,29,871/-, in the order passed u/s 143(1) of the Act, added the same resulting into taxing the same income twice. The ld. CIT (A) dismissed the appeal on the ground that there was no compliance from the assessee in the appellate proceedings. After considering the facts on record, we find that this income has been offered to tax by the assessee itself in the return of income and therefore, the addition made by the ld. AO / CPC while processing is wrong and has to be deleted. Consequently, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the addition. 05. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 22.07.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 22.07.2025 Sudip Sarkar, Sr.PS Printed from counselvise.com Page | 3 ITA No.465/KOL/2025 M/s Saha Textile; A.Y. 2021-22 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata Printed from counselvise.com "