DURGA DUTTA SUBUDHI,PURI V. ITO, WARD PURI

ITA 552/CTK/2024

AI Insights

The case involves an appeal by Durga Dutta Subudhi against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2017-2018. The primary issue was the shifting of income heads from business to house property in the intimation issued under section 143(1) of the Income Tax Act, based on TDS deductions under section 194-I. The assessee argued that such a shift was not permissible, while the revenue contended that the assessee had not provided complete facts in the return. The tribunal sided with the assessee, emphasizing that the electronic return did not support the shifting of income heads and that such a change in an intimation under section 143(1) was not allowed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708612 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO; B
• Assessee Lawyers: P.R.MOHANTY
• Keywords: Condonation of delay; Business income; TDS

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.552/CTK/2024 (नििाारण वर्ा / Assessment Year : 2017-2018) Durga Dutta Subudhi Badasankha, Grand Road, Puri Vs ITO, Ward Puri. PAN No. :ACXPS 7943 P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri P.R.Mohanty, Advocate राजस्व की ओर से /Revenue by : Shri Nishanth Rao, B Sr.DR सुनवाई की तारीख / Date of Hearing : 15/07/2025 घोषणा की तारीख/Date of Pronouncement : 15/07/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 05.09.2024 for assessment year 2017-2018. 2. The appeal of the assessee is barred by 24 days. In this regard, the assessee has filed an application for condonation of delay supported with affidavit stating therein the sufficient reasons which are plausible and not found to be false. Ld. Sr. DR also did not raise any serious objection. Accordingly, delay of 24 days in filing the present appeal by the assessee is condoned and the appeal is admitted for hearing. 3. It was submitted by the ld AR that the assessee is running a hotel in Puri. The assesee has filed its return of income declaring income from business, however, intimation came to be issued u/s.143(1) of the Act ITA No.552/CTK/2024 2 assessing the income of the assessee under the head income from house property as the TDS return showed TDS having deducted u/s.194-I of the Act. It was the submission that the heads of income of the assessee have been shifted in the intimation issued u/s.143(1) of the Act, which is not permissible. 4. In reply Ld. CIT DR submitted that in the return the assessee has shown the TDS has been deducted under the head house property. It was a duty of the assessee to bring out all the facts in the return. It was the submission that the intimation u/s.143(1) of the Act is liable to be upheld. 5. We have considered the rival submissions. There is no provision in the return of income filed electronically to show that the assessee had income from the TDS in relation to the business income. In any case, in an intimation u/s.143(1) of the Act, the heads of income cannot be shifted. As it is noticed that the CPC has shifted the heads of income in the intimation issued u/s.143(1) of the Act, we are of the view that the said intimation is liable to be struck down and we do so. 6. In the result appeal of the assessee is allowed. Order dictated and pronounced in the open court on 15/07/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 15/07/2025 Prakash Kumar Mishra, Sr.P.S. ITA No.552/CTK/2024 3 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "