CHANDRA KATARIA,BHOPAL V. INCOME TAX OFFICER 3(3), BHOPAL

ITA 655/IND/2024

AI Insights

The case involves two appeals by Chandra Kataria against the order of the Commissioner of Income-tax (Appeals), which upheld the addition of Rs. 12,87,000 as 'notional interest income' by the Assessing Officer. Initially, the assessee's return for AY 2010-11 was assessed, and later, based on new information about bank deposits, the case was reopened. The ITAT dismissed one of the appeals due to redundancy and the other after the CIT(A) rectified the earlier order, providing full relief to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711795 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEESUBMITTEDTHATTHEASSESSEEAPPELLANTHASDUETO; FORREVENUEINSTANTLYAGREED.INVIEWOFTHIS; WEDISMISSTHE; FORREVENUEINSTANTLYAGREED; SHRIASHISHPORWAL
• Assessee Lawyers: SHRIPAWANVED
• Keywords: Notional interest
• Section: 143(3); 154; 139

Judgement Text

"Page 1 of 5 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No.586/Ind/2024 (AY:2010-2011) ITA No.655/Ind/2024 (AY:2010-2011 ) Chandra Kataria, 46, Advocate Colony, Idgah Hill, Bhopal बनाम/ Vs. ITO 3(3) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: ABKPK4914A Assessee by Shri Pawan Ved, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 22.07.2025 Date of Pronouncement 24.07.2025 आदेश/ O R D E R Per B.M. Biyani, AM: The captioned two appeals have been filed by assessee against the very same order of first-appeal passed by learned Commissioner of Income-tax (Appeals), Addl/JCIT(A)-2, Mumbai [“CIT(A)”] u/s 250 of the Income-tax Act, 1961 [“the Act”], which in turn arise out of assessment-order dated 26.12.2017 passed by ITO-3(3), Bhopal [“AO”] u/s 143(3) r.w.s. 147 of the Act for Assessment-Year [“AY”] 2010-11. 2. The brief facts are such that the assessee-individual filed her return of income of AY 2010-11 u/s 139 on 29.03.2011 declaring a total income of Rs. 2,29,230/- which was assessed. Subsequently, the AO, based on certain Printed from counselvise.com Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 Page 2 of 5 information regarding deposits in assessee’s bank a/c, re-opened assessee’s case u/s 147 through notice dated 27.03.2017 u/s 148. Finally, the AO completed re-opened assessment vide order dated 26.12.2017 after making an addition of ‘notional interest income’ of Rs. 12,87,000/-. Aggrieved, the assessee carried matter in first-appeal. The CIT(A) passed order dated 14.06.2024 ex-parte to assessee wherein he upheld the addition made by AO. Now, the assessee has come in next appeal before ITAT. ITA No. 655/Ind/2024: 3. Ld. AR for assessee submitted that the assessee/appellant has due to oversight filed two appeals against the very same order of CIT(A). Therefore, one of these two captioned appeals may be dismissed straightaway. Ld. DR for revenue instantly agreed. In view of this, we dismiss the 2nd appeal being ITA No. 655/Ind/2024. ITA No. 586/Ind/2024: 4. In so far this appeal is concerned, Ld. AR submitted that the issue relates to the addition of Rs. 12,87,000/- made by AO on account of ‘notional interest income’. Ld. AR pointed out that in the impugned order of first-appeal which is passed ex-parte to assessee, the CIT(A) has upheld the addition made by AO but subsequently the assessee has filed a rectification application u/s 154 to CIT(A) and the Ld. CIT(A) has passed a very recent order dated 24.03.2025 u/s 154 r.w.s. 250 deleting the addition of Rs. 12,87,000/- in entirety and giving full relief to assessee. Ld. AR has filed a Printed from counselvise.com Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 Page 3 of 5 copy of the order passed by CIT(A). For reference, the first page and last page of the order passed by CIT(A) are scanned and re-produced below: Printed from counselvise.com Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 Page 4 of 5 5. Therefore, Ld. AR submitted that there is no surviving grievance to assessee. Ld. AR prayed this bench to close this appeal accordingly. Ld. DR for revenue instantly agreed. Printed from counselvise.com Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 Page 5 of 5 6. In view of the fact that the CIT(A) has also granted full relief to assessee and the assessee does not have any surviving grievance, this appeal becomes infructuous/meritless and the same is also dismissed. We only direct the AO to give effect to the latest order dated 24.03.2025 passed by CIT(A) u/s 154 r.w.s. 250 and accordingly delete the addition made in assessment-order. 7. Resultantly, both of these appeals are dismissed. Order pronounced in open court on 24/07/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/ Dated : 24/07/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "