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2022 (11) TMI 729 - ITAT AMRTISARAdjustment of the income in processing of return u/s 143(1) - addition of total turnover of business by a back calculation with the total income of the assessee - addition made on basis of the reflection in 26AS plea of the counsel of the assessee is that only the net profit - @ 8% will be added as per the provision of section 44AD of the Act - HELD THAT:- The jurisdiction of the assessing authority for processing of return u/s 143(1) is only restricted for certain conditions which is designated in the CBDT Instruction no. 1814 dated 04.04.1989. The Act is very clear in this issue, there is no such any ambiguity in the Act related to processing u/s 143(1). The income which was reflected in the 26AS is a gross turnover. So, the addition made on basis of the reflection in 26AS without allowing reasonable opportunity to the assessee. But the ld. AO suo motu added back the amount which is violation of the natural justice. After respectfully considered the catena of judgment as mentioned above, the addition amount is arbitrary and bad in law. The ld. AO had acted beyond the jurisdiction related to this addition. Here, the order passed u/s 143(1) is bad in law. So the addition made by the ld. AO amount is liable to be quashed.
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