The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) directed the assessing officer to re-adjudicate the rejection of a claim on loss of sale of discarded assets due to invalid filing of Income Tax Returns.
Blue Reservoir Business Services, the appellant assessee limited liability partnership firm, and total income consist of income from profits and gains, from business, and from other sources.
The assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) of the National faceless appeal center under section 250 of the Income Tax Act,1961 for confirming the rejection of a claim on loss of sale of discarded assets by the Assistant Director of Centralised Processing Centre.
Padam Chand Khincha, the counsel for the assessee contended that the principal officer of the assessee company who was looking after the affairs of assessee company was not well versed with Income Tax Business Application (ITBA) portal. Hence, there was no compliance with the various notices issued by the National faceless appeal center by the Commissioner of Income Yax (Appeals).
It was also submitted that the rejection of a claim on loss of sale of discarded assets by the assistant director was not as per the law and is liable to be deleted.
Priyadarshini Baseganni, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the assessee filed the Income Tax Returns wrongly which was not as per the law.
The two-member bench comprising Chandra Poojari (Accountant) and Beena Pillai (Judicial) directed the Commissioner of Income Tax (Appeals) to re-adjudicate the matter on merit after giving the opportunity of hearing to the assessee while allowing the appeal filed by the assessee.
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