AMBUJA REALTY DEVELOPMENT LTD.,KOLKATA V. DCIT, CIRCLE 13(1), , KOLKATA

ITA 992/KOL/2025

AI Insights

The case involves Ambuja Realty Development Ltd., which appealed against an order from the National Faceless Appeal Centre (NFAC), Delhi, concerning the assessment year 2014-15. The primary issue was a delay of 250 days in filing the appeal, which the appellant sought to condone, citing a rectification order dated 27.03.2025. The appellant argued that the NFAC had erroneously adjudicated issues related to a different assessment year (2017-18) and failed to rectify these mistakes despite a rectification petition filed on 17.06.2024. Both the appellant's representative and the Department's representative agreed that the matter should be remanded back to the CIT(A) for proper adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708874 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2014-2015
• Other Referred Cases: SPK and Co. Vs. State Tax Officer [2024] 169 taxmann.com 701 (Madras)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: FILING RECTIFICATION PETITION ..
• Keywords: Set aside; Period of limitation; Principle of natural justice; Rectification of order
• Section: 154

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH”, KOLKATA SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 992/KOL/2025 (Assessment Year 2014-15) Ambuja Realty Development Ltd., Ecospace Business Park, Block 4B, 6th Floor, Premises No. IIF/11, No. IIF/11, Action Area II, New Town, Kolkata - 700156 [PAN: AAECM3318C] ……..…...…………….... Appellant vs. DCIT, Cir-13(1), Kolkata, NADTRC Building, Aayakar Bhawan, 6th Floor, Poorva, 110, Shanti Palli, Kolkata - 700107 ................................. Respondent Appearances by: Assessee represented by : Ms. Priyanka Salarpuria, FCA Department represented by : Smt. Aditi Yadav, Sr. DR Date of concluding the hearing : 10.07.2025 Date of pronouncing the order : 15.07.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. In this case, there is a delay of 250 days in the filing of appeal before the ITAT. The delay has been requested to be condoned as under: “1. That the order of the NFAC, Delhi for A.Y. 2014-15 was passed on 12th June 2024 u/s 250 of the Income Tax Act, 1961 which was received by the appellant company on 12.06.2024. 2. That there was mistake in the said order as in the first paragraph of the appellate order dated 12.06.2024 it was stated that \"the present appeal arises from the order passed u/s 154 dated 25.02.2022 of the Income Tax Act by the Income Tax Officer WBG-C-(166)(1) for the A.Y.2017-18\". 3. That in para 4 of the appellate order reference was given to the rectification order passed by the AO pertaining to A.Y. 2017-18. 2 ITA No. 992/Kol/2025 Ambuja Realty Development Ltd. 4. That in para 5 of the appellate order detailed chart of notices issued u/s 250 of the Act containing DIN, issue date, hearing date and remarks where all the notices stated relates to the A.Y. 2017-18. 5. That a rectification petition u/s 154 of the Act was filed before the Ld. CIT (A) on 17.06.2024. 6. That after Appellate Order has been made, Sec. 154 of the Income Tax Act 1961 provides for an application to be made for rectification. 7. That such rectification can be disposed either in favour of the assessee or against him. 8. That if any rectification is made as prayed for, the same would get merged into the original order. 9. That the period of limitation to challenge the original assessment order cannot be said to begin from the date on which the original order was passed, it would only count from the date on which the order of rectification has been passed. 10. That in the present case, the original Appellate Order was made on 12.06.2024 and the order in rectification was made on 27.03.2025 and therefore the period of limitation for challenging the order of assessment dated 27.03.2025 shall start ticking from the date of the rectification order i.e. 27.03.2025. 11. That the Hon'ble Madras High Court has taken a similar view in the case of SPK and Co. Vs. State Tax Officer reported in [2024] 169 taxmann.com 701 (Madras) (22.11.2024). 12. That for the aforesaid reason there is no delay of 247 days for filing the appeal before the Hon'ble Income Tax Appellate Tribunal. 13. That the delay, if any, in filing the appeal is not intentional or mala fide but due to waiting for the disposal of the rectification application of the Appellant Company by the Commissioner (Appeals). 14. Hence, it is prayed that the delay, if any, in filing the appeal be condoned and the appeal be admitted for hearing.” 1.1. Considering the reasons given in the said affidavit, the delay is hereby condoned and the appeal is admitted for adjudication. 2. This appeal arises from the order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide order dated 12.06.2024. 2.1 In this case the Ld. AO made an addition of Rs. 35,45,667/- on account of alleged unverifiable expenses for repairs and maintenance. Aggrieved with the action, the assessee filed an appeal before the Ld. CIT(A). 3 ITA No. 992/Kol/2025 Ambuja Realty Development Ltd. 2.2 However, it appears that the Ld. CIT(A) adjudicated on issues which were not part of the subject matter of Ld. AO’s order. This fact has been highlighted in the grounds of appeal before the ITAT as under: “1. On the facts and circumstances of the case and in law, the impugned order of NFAC so passed, is bad in law, illegal and having been passed in violation of the principle of natural justice as well as against the set procedure in law is liable to be set aside. 2. On the facts and F circumstances of the case and in law, the Ld. CIT (A) NFAC committed a grievous mistake in passing an order on facts and grounds of appeal which were not raised in the appeal memo filed in Form-35. 3. On the facts and in the circumstances of the case and law, the Ld. CIT (A) NFAC has committed a serious mistake in not rectifying the mistakes in the order which were brought to his notice by the appellant by filing rectification petition 17.06.2024. 4. On the facts and in the circumstances of the case and law, the Ld. CIT (A) NFAC was unjustified in observing in the order u/s 154 r.w.s. 250 dated 27.03.2025 that an alternate remedy of appeal against the order of CIT (A) is available to the assessee and not rectifying the mistake committed by him while passing the order u/s 250 of the Act in adjudicating the wrong facts and grounds of appeal which were not before him and acceding jurisdiction. 5. On the facts and circumstances of the case and in law, the Ld. CIT (A) NFAC be directed to supply the correct order of appeal passed on 12.06.2024 u/s 250 of the Act. 6. The Appellant craves leave to add, alter, amend and/or withdraw any of the grounds or grounds of appeal either before or at the time of the appeal hearing.” 3. Before us the Ld. AR argued and pointed out that due to an oversight possibly the issues pertaining to a different Assessment Year were adjudicated. The Ld. AR requested for remanding back the issues to the file of Ld. CIT(A). 3.1 The Ld. DR fairly agreed with the Ld. AR that this matter needed to be remanded back to the Ld. CIT(A) for appropriate adjudication. 4. We have considered the documents before us and heard the Ld. AR/DR. It is amply visible that the Ld. CIT(A) has not adjudicated the grounds before him. We accordingly set aside the impugned order and remand the matter back to the file of Ld. CIT(A) for adjudicating on the grounds of appeal presented before him by the assessee. 4 ITA No. 992/Kol/2025 Ambuja Realty Development Ltd. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 15.07.2025 Sd/- Sd/- (Pradip Kumar Choubey) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 15.07.2025 AK, Sr. P.S. Copy of the order forwarded to: 1. Ambuja Realty Development Ltd. 2. DCIT, Cir-13(1), Kolkata 3. CIT(A) 4. CIT 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches "