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2020 (2) TMI 1489 - AT - Income TaxAdjustments made u/s 143(1)(a) - .CIT(A) enhanced the addition and directed the Assessing Officer(AO) to deny the exemption of long term capital gains on sale of property - AR argued that the assessee had sold the property during the year under consideration and admitted the capital gains on sale of property for a sale consideration of ₹ 31,38,000/- from which the cost of development to the extent of ₹ 7,31,016/- was claimed as deduction and the balance amount of ₹ 24,06,984/- was invested in bank fixed deposits which is eligible for deduction u/s 11(1A)(a) - HELD THAT:- As perused the material placed on record as per the adjustments made by the CPC, Bangalore u/s 143(1)(a) is an issue which required to be verified with the relevant documents. Therefore, the adjustments are not within the scope provided u/s 143(1)(a) of the Act. As per proviso to section 143(1)(a), the AO is required to give an intimation before making such adjustments, either in writing or in electronic mode and the department has not demonstrated that it has given an intimation to the assessee proposing to make such adjustments. Therefore, the adjustment made by the CPC u/s 143(1)(a) is beyond the scope of the said section, hence, not permissible and accordingly deleted. Enhancement made by the Ld.CIT(A) in the appeal - CIT(A) has directed the AO to deny the exemption claimed by the assessee u/s 11(1A)(a) of the Act and the assessee contended that the Ld.CIT(A) is not permitted to make enhancement without giving opportunity to the assessee - In the instant case we, observe from the order of the Ld.CIT(A) that, he has not given any enhancement notice before enhancing the addition. Therefore, the enhancement made by the Ld.CIT(A) is unsustainable, hence deleted. Denial of credit - CIT(A) without verifying the details and reconciliation of the income has directed the AO to allow the sum of ₹ 35,309/- as against ₹ 46,426/- claimed by the assessee. Therefore, we, direct the AO to call for the information for reconciliation of the receipts and the admission of income as per the system of accounting followed by the assessee and allow the credit for the taxes paid/credit claimed in respect of the income admitted in the year under consideration or in the earlier years as per the method of accounting. Accordingly, the appeal of the assessee is on this ground is allowed for statistical purposes.
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