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ITA No.- 2504/Del/2016.

P.K. Cotton Mills (P) Ltd.

(D) The second issue before us, is regarding the aforesaid addition of Rs.

49,46,196/-. The Ld. Counsel for assessee contended that the aforesaid addition amounts to double addition of the same amount. He drew our attention to the fact that the entire loss claimed by the assessee has been disallowed by the AO and the profit of Rs. 8,48,105/- has been brought to tax on account of estimation of business profit. The aforesaid amount of Rs. 49,46,196/- was part of the business loss claimed by the assessee and once that loss is disallowed, and estimated net profit is assessed as income; the aforesaid amount of Rs. 49,46,196/- stands disallowed automatically.

Therefore, the Ld. Counsel for the assessee submitted that there was no justification for once again making repeated addition on the aforesaid amount of Rs. 49,46,196/- in the Assessment Order. The Ld. DR agreed that the repeated addition made by the AO in respect of the aforesaid amount of Rs. 49,46,196/- amounts to double addition of the same amount and he left it to the discretion of the Bench to give appropriate direction to the AO for deleting the double addition. As both sides are in agreement that repeated addition of Rs. 49,46,196/- made by the AO amounts to double addition of the same amount; we accordingly direct the AO to delete the repeated addition, because double addition of the same amount is not sustainable in law.