ADROIT AGRI TRADE PRIVATE LIMITED,VASHI, NAVI MUMBAI V. ITO WARD 1(1), NASHIK, NASHIK

ITA 1878/PUN/2024

AI Insights

The case involves Adroit Agri Trade Private Limited, which appealed against the order of the CIT(A) that dismissed their appeal due to a significant delay in filing. The delay was attributed to the COVID-19 pandemic and the search for a new tax consultant. The Tribunal found reasonable cause for the delay and condoned it. The main issue pertained to technical defects in the processing of the return by the CPC, particularly in the calculation of deemed total income under section 115JB of the Income Tax Act. The Tribunal directed the Jurisdictional Assessing Officer to rectify these defects and reassess the income after providing a proper opportunity of being heard to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471153 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AVIYOGI AMBADKAR
• Assessee Lawyers: PIYUSH BAFNA
• Keywords: Condonation of delay; Opportunity of being heard; Reasonable cause
• Section: 143(1); 115JB

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1878/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Adroit Agri Trade Private Limited, 2063A, S-Wing, Akshar Business Park, Plot 03, Sec. 25, Vashi, Navi Mumbai, Sanpada S.O., New Mumbai, Thane- 400705. PAN : AAICA5327P Vs. ITO, Ward-1(1), Nashik. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. Addl/JCIT(A)-3, Ahmedabad [Ld. CIT(A)’] dated 10.07.2024 which is arising out of the assessment order u/s 143(1) of the Act for Assessment Year 2018-19 framed on 02.07.2019 by the CPC, Bangalore. 2. Though the assessee raised six grounds of appeal but the major grievance is that Ld. CIT(A) has dismissed the appeal of the Assessee by : Shri Piyush Bafna Revenue by : Shri Aviyogi Ambadkar Date of hearing : 11.03.2025 Date of pronouncement : 25.03.2025 ITA No.1878/PUN/2024 2 assessee in limine by not condoning the delay of 2 years 9 months in filing of the appeal before Ld. CIT(A). 3. Ld. Counsel for the assessee referring to the contents of the condonation application submitted that major delay was on account of Covid-19 restriction and the remaining delay was on account of search for tax consultant to file the appeal. He therefore prayed that the delay pleased be condoned with a direction to Ld. CIT(A) to adjudicate the appeal on merits. 4. On the other hand, Ld. DR supported the order of Ld. CIT(A) and opposed to the request of condonation of delay in filing the appeal before Ld. CIT(A). 5. We have heard rival contentions and perused the records placed before us. Admittedly, the assessee is a private limited company and the order u/s 143(1)(a) of the Act was passed on 02.07.2019. Certain prima-facie adjustments was made by the CPC which mainly were made under the deemed total income u/s 115JB of the Act. The assessee preferred appeal before Ld. CIT(A) but the same was delayed by 2 years and 9 months. We have gone through the application filed by the assessee before Ld. CIT(A) praying for condonation of delay and find that the tax consultant who was hired by the assessee to file the income tax return, was not well versed ITA No.1878/PUN/2024 3 with the procedure of filing of appeal before Ld. CIT(A). By the time, the assessee company could look for new tax consultant for filing the appeal, the country was lockdown due to Covid-19 pandemic from March, 2020 till March, 2022 and immediately, after lifting of Covid-19 restriction, the assessee filed the appeal before Ld. CIT(A) on 16.05.2022. We find that the assessee has reasonable cause preventing it from filing the appeal in time before Ld. CIT(A). Therefore, we condone the delay in filing of appeal before Ld. CIT(A). 6. So far as merits of the case are concerned, Ld. Counsel for the assessee demonstrated before us that there are some technical defects in processing of return by CPC and also took us to Schedule MAT where the profit after tax as shown in Profit & Loss Account is Rs. -3,15,480/-. Now in the last column of the Schedule MAT i.e. at the end where the total addition of column no.5a to 5n is mentioned Rs.5,81,761/- but the book profit calculated in column no.7 is total of column no.4 + column no.5a to 5n. Now column no.6 amounting is Nil. So what remains is Rs. -3,15,480/- + Rs.5,81,761/- and resultant figure is Rs.2,66,281/- and this is the figure which the assessee has disclosed in the return. But surprisingly in the CPC processing at serial no.7 the figure of total ITA No.1878/PUN/2024 4 addition i.e. 5n at Rs.5,81,761/- is computed. It is clear a case of technical defect in the CPC processing and the same needs to be rectified. We therefore restore the issue to the file of Ld. Jurisdictional Assessing Officer who shall examine the issue as per discussion made hereinabove and then calculate the correct income of the assessee for which proper opportunity of being heard be provided to the assessee. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of March, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 25th March, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Addl/JCIT(A)-3, Ahmedabad. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "