CIT(A) Mistakes Appeal Against 143(1) Intimation as u/s 154 Order: ITAT Sets Aside Dismissal, Remands for Fresh Adjudication on 80P Deduction [Read Order]
ITAT held that the appeal was wrongly treated against the rectification order and remanded for fresh adjudication on 143(1) intimation and 80P claims.
fresh - adjudication - Taxscan
fresh - adjudication - Taxscan
The Bangalore Bench of the Income Tax Appellate Tribunal ( ITAT ) has set aside an order by the Commissioner of Income Tax (Appeals) ( CITA (A) ) and observed that the appeal filed was inadvertently treated by CIT(A) as one that arose from a rectification order under section 154 of the Income Tax Act, 1961 instead of against an intimation order issued under section 143(1) of the Act.
The appellant-assessee, Rani Channamma Co-operative Credit Society Ltd., is a registered co-operative society engaged in providing credit facilities to its members and had filed a return under section 139(4) for the Assessing Year (AY) 2019-20 and also declared NIL income after claiming deduction of ₹5,07,058 under section 80P.
The return was processed by the Centralized Processing Centre (CPC) under section 143(1) and disallowed the deduction due to a violation of section 80AC.
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The assessee filed a rectification application under section 154 and the application was dismissed. The assessee appealed before the CIT(A) against the 143(1) for the intimation order.
In appeal, the assessee contended that the deduction under section 80P was valid and allowable. The assessee relied on CBDT Circular No. 13/2023, which supported the condonation of delay under section 119(2)(b) of the Act and allows genuine claims to be considered.
The CIT(A) dismissed the appeal as it was against a rectification order under section 154 and not against the intimation. The CIT(A) observed that the appellant failed to bring on record any mistake apparent from the record in the CPC’s adjustment and that the scope of rectification could not cover issues requiring fresh investigation of facts.
The CIT(A) ruled that the appellant had not shown any request for condonation of delay and hence no relief could be granted.
Aggrieved, the assessee approached the Tribunal.
The Tribunal Bench comprising Waseem Ahmed (Accountant Member) and Keshav Dubey (Judicial Member) noted from records that the CIT(A) had inadvertently passed the order under a mistake that the appeal was against a section 154 rectification rejection.
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The tribunal held that the appeal indeed emanated from the 143(1) intimation and not from a rectification order.
Accordingly, the Tribunal set aside the order of the CIT(A) and remanded the matter for fresh consideration, directing that reasonable opportunity be granted to the assessee.
The assessee was represented by Siddhesh Nagraj Gaddi, while Ganesh R. Ghale appeared for the Revenue.
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