CHAIT RAM RATHORE, KORBA,KORBA V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), BILASPUR, BILASPUR

ITA 449/RPR/2024

AI Insights

The case involves Chait Ram Rathore, a retired salaried employee, who appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, which was based on the order passed by the Central Processing Centre under section 154 of the Income Tax Act. The dispute centered on the rejection of tax relief claimed under section 89 for arrears of salary received, which was initially not considered during the processing of his return under section 143(1). The Tribunal found that the necessary documents, including Form No. 10E, were not considered by the department while passing the order under section 154. Consequently, the Tribunal set aside the matter for re-examination by the Ld. AO.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 106806 (ITAT-RAIPUR)
• Duration Of Justice: 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-11-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 15-10-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MOHAN AGRAWAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Rectification of order; FORM 26AS
• Section: 250; 154; 143(1); 10AA

Judgement Text

"आयकर अपीलीय अिधकरण, रायपुर Ɋायपीठ, रायपुर IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR ŵी रिवश सूद, Ɋाियक सद˟ एवं ŵी अŜण खोड़िपया, लेखा सद˟ क े समƗ । BEFORE SHRI RAVISH SOOD, JM & SHRI ARUN KHODPIA, AM आयकर अपील सं. / ITA No: 449/RPR/2024 (िनधा[रण वष[ Assessment Year:2021-22) Chait Ram Rathore, Plot No. 786, Second Floor, Ankita Complex, Niharika Kosabadi, Korba, Chhattisgarh, 495677 V s Deputy Commissioner of Income Tax, Circle -1(1), Bilaspur PAN: AGSPR8258F (अपीलाथŎ/Appellant) . . (ŮȑथŎ / Respondent) िनधाŊįरती की ओर से /Assessee by : None (Adjournment Application) राजˢ की ओर से /Revenue by : Shri Mohan Agrawal, Sr. DR सुनवाई की तारीख / Date of Hearing : 18.11.2024 घोषणा की तारीख/Date of Pronouncement : 19.11.2024 आदेश / O R D E R Per Arun Khodpia, AM: The captioned appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals), NFAC, Delhi [in short “Ld. CIT(A)”], u/s 250 of the Income Tax Act, 1961 (for short, “The Act”), for the Assessment Year 2021-22 dated 16.08.2024. Resulted, from the order passed by the Central Processing Centre (for short, “The Ld. AO”), U/s 154 of the IT Act, dated 05.11.2022. 2 ITA No. 449/RPR/2024 Chait Ram Rathore, Korba vs DCIT, Circle-1(1), Bilaspur 2. The grounds of appeal raised by the assessee, reads as under: 1. That, order is unjustified and against the natural justice. 2. That applicant filled 10E form and application under section 154 with in time and as per purview of 154 section, but assessing officer and commissioner appeal ignore this point, that is illegal and unjustified. 3. That assessing officer nor appellate authority ignore the proceeding of section 143(1) and not given effect of definition of section 143(1), That is illegal and unjustified. 3. At the threshold of hearing, it is brought to our notice that the assessee has submitted an application for adjournment on account of health problems seeking the next date of hearing on 26.11.2024, but on consideration of the facts of the present case on the basis of material available before us, we find it appropriate to adjudicate the case, therefore, the request for adjournment of the assessee has been rejected and the matter is taken as heard. 4. While going through the facts of the case submitted by the assessee, it is transpired that the assessee herein is a retired salaried employee of CSEB. Assessee had filed his Return of Income (ROI) on 23.12.2021 declaring total income of Rs. 69,47,170/-. Assessee has claim tax relief u/s 89 for Rs. 12,86,394/- towards the arrears of salary received during the year under consideration. Such claim of the assessee was rejected, when the return of assessee was processed u/s 143(1) by the CPC on 13.10.2022. Since the relief claimed by the assessee u/s 89(1) has not been allowed by the CPC, the recourse to file an application u/s 154 of the Act was exercised 3 ITA No. 449/RPR/2024 Chait Ram Rathore, Korba vs DCIT, Circle-1(1), Bilaspur by the assessee on 05.11.2022. It is also emanating from the records that Form No. 10E and other supporting documents necessary are e-filed by the assessee, but were not considered by the department. As per order of Ld. CIT(A), the assessee was non- compliant before him towards the notice’s issues on 07.05.2024, 03.06.2024 and 21.06.2024. It is also observed by the Ld. CIT(A) that Form no. 10E was not filed by the assessee before filing of the return but the same was filed on 04.11.2022 nearly after one year from the date of filing of the return. 5. In the present case, the impugned order is rectification order u/s 154 of the Income Tax Act, which was decided against the assessee and confirmed by the Ld. CIT(A) by rejecting the contentions of the assessee. The date of events in the present case happen to be as under: (i) Income Tax Return filed on 23.12.2021 (ii) Intimation u/s 143(1) issued on 13.10.2022 (iii) Application for rectification u/s 154 filed by the assessee on 05.11.2022 (iv) Rectification order u/s 154 passed on 05.11.2022 (v) Form 10E and other requisite documents were issued on 04.11.2022 6. In backdrop of aforesaid dates of events and facts and circumstances, it is observed that the assessee had claimed tax relief u/s 89(1) of the Act for which Form 10E was not filed on or before filing of the return on 23.12.2021. The claim of the 4 ITA No. 449/RPR/2024 Chait Ram Rathore, Korba vs DCIT, Circle-1(1), Bilaspur assessee u/s 89 was rejected by the CPC while issuing the intimation u/s 143(1) on 13.10.2022, however, as per provisions of first proviso to section 143(1)(a), it was mandatory on the part of department to make any adjustment as prescribed in the said section after giving an intimation to the assessee in writing or in electronic mode to which the assessee would be entitled to respond within 30 days, which has to be considered before making such adjustment. In present case, whether such opportunity was afforded to the assessee are not prima facie coming out from the material available before us, therefore, in all fairness to verify such aspects, the matter needs to be restored back to the files of Ld. AO to examine and verify such material aspects before rejecting the claim of the assessee u/s 89(1). It is also a fact on record that an application for rectification was filed by the assessee on 05.11.2022, whereas Form 10E and relevant documents was furnished online which were available with the department on 04.11.2022, however, such information was not considered by the department while passing the order u/s 154. Under such facts and circumstances as fairly admitted by both the parties. This matter deserves to be set aside and to be adjudicated afresh by the Ld. AO on the basis of material furnished by the assessee and after considering the explanations therein. 7. Needless to say, reasonable opportunity of being heard shall be provided to the assessee in the set aside assessment proceedings as prescribed in the law. 5 ITA No. 449/RPR/2024 Chait Ram Rathore, Korba vs DCIT, Circle-1(1), Bilaspur 8. For the sake of reference provisions of 1st and 2nd proviso to section 143(1)(a) are extracted hereunder: 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely:— (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure or increase in income indicated in the audit report but not taken into account in computing the total income in the return; (vi) disallowance of deduction claimed under section 10AA or under any of the provisions of Chapter VI-A under the heading \"C.—Deductions in respect of certain incomes\", if the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made: 6 ITA No. 449/RPR/2024 Chait Ram Rathore, Korba vs DCIT, Circle-1(1), Bilaspur Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018 9. In result, appeal of the assessee is partly allowed for statistical purposes in terms of our aforesaid observations. Order pronounced in the open court on 19/11/2024. Sd/- (RAVISH SOOD) Sd/- (ARUN KHODPIA) Ɋाियक सद˟ / JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER रायपुर/Raipur; िदनांक Dated 19/11/2024 Vaibhav Shrivastav आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीलीय अिधकरण, रायपुर/ITAT, Raipur 1. अपीलाथŎ / The Appellant- Chait Ram Rathore, Korba 2. ŮȑथŎ / The Respondent- DCIT, Circle-1(1), Bilaspur 3. आयकर आयुƅ(अपील) / The CIT(A), 4. The Pr. CIT, Raipur (C.G.) 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, रायपुर/ DR, ITAT, Raipur 6. गाडŊ फाईल / Guard file. // स×याǒपत Ĥित True copy // "