HARIT DEVELOPERS ,PUNE V. DCIT, CIRCLE 8, PUNE, PUNE

ITA 2221/PUN/2024

AI Insights

The case involves Harit Developers, a partnership firm engaged in real estate, which filed two appeals against the orders of the CIT(A) related to the Assessment Year 2015-16. The first appeal (ITA No. 513/PUN/2022) challenged the rejection of a rectification application under section 154 of the Income Tax Act, which sought to correct an inadvertent addition of Rs. 40,00,000 as interest income due to a software error. The second appeal (ITA No. 2221/PUN/2024) contested the original assessment order under section 143(3), which included the same interest income. The tribunal dismissed the first appeal, finding no mistake in the assessment order, but allowed the second appeal for further examination of the circumstances under which the interest income was reported.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47239 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP P. SATHE
• Assessee Lawyers: DEEPA KHARE ITA
• Keywords: Reasonable cause
• Section: 143(3); 142(1); 143(2); 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.513/PUN/2022 & 2221/PUN/2024 Assessment Year : 2015-16 Harit Developers, Royal Orange Country, S. No. 29/1, 29/2, Behind Fountain INN, Rahatni, Pune-411017 PAN : AAGFH5853C Vs. DCIT, Circle-8, Pune Appellant Respondent आदेश / ORDER PER BENCH : The appeal in ITA No. 513/PUN/2022 at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 23.05.2022 for Assessment Year 2015-16 and the appeal in ITA No. 2221/PUN/2024 at the instance of assessee is directed against the order of the Ld. Addl./JCIT(A), Jodhpur dated 23.09.2024 for Assessment Year 2015-16. 2. Brief facts of the case are that the assessee is a partnership firm engaged in the business as promoters, builders and developers. It furnished its return of income for A.Y. 2015-16 on Appellant by : Smt. Deepa Khare for ITA No. 513/PUN/2022 & None for ITA No. 2221/PUN/2024 Revenue by : Shri Sandeep P. Sathe Date of hearing : 16.01.2025 & 15.01.2025 Date of pronouncement : 08.04.2025 ITA Nos.513/PUN/2022 & 2221/PUN/2024 2 30.09.2015 declaring income of Rs.79,04,150/-. The case was selected for scrutiny through CASS for limited scrutiny followed by validly serving the notices u/s. 143(2) and 142(1) of the Act. The details filed by the assessee were considered and income declared accepted as assessed income. Thereafter, the assessee filed an application u/s. 154 of the Act stating that the assessee had inadvertently added interest income of Rs.40,00,000/- in its return of income on account of software error but actually there is no such income earned by the assessee. However, this application u/s. 154 of the Act was rejected by the Ld. DCIT stating that there is no apparent mistake in the assessment order. 3. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) against the order u/s. 154 of the Act but failed to succeed. Now, the assessee has filed an appeal before this Tribunal in ITA No. 513/PUN/2022. Simultaneously the assessee also preferred an appeal against the order u/s. 143(3) of the Act dated 01.12.2017 before the Ld. CIT(A) on 11.07.2018 again claiming that due to unknown software error interest income of Rs.40,00,000/- was inadvertently declared in the return but there is no such entry in its books. However, the appeal of the assessee was dismissed by the Ld. CIT(A) on account of delay in filing of appeal non-compliance. 4. We notice that for the very same issue two appeals have been filed. However, the appeal filed against the order u/s. 154 of the Act deserves to be dismissed as there was no apparent mistake in the assessment order framed by the Ld. Assessing Officer. We, therefore, failed to find any infirmity in the findings of Ld. CIT(A). Accordingly, appeal of assessee in ITA No. 513/PUN/2022 is hereby dismissed. ITA Nos.513/PUN/2022 & 2221/PUN/2024 3 5. So far as, ITA No. 2221/PUN/2024 is concerned, the assessee has contended that income from interest at Rs.40,00,000/- was not earned by it during the year and due to inadvertent mistake error in the software as well as the mistake at the end of person filing the return, interest income of Rs.40,00,000/- has been wrongly disclosed and offered to tax. We, further notice that the Ld. CIT(A) has not passed a speaking order since the assessee failed to make proper compliance on due date of hearing. We, therefore, deem it proper to provide one more opportunity to the assessee and restore the issue raised in the grounds of appeal on merits to the file of Ld. CIT(A) for necessary adjudication for which reasonable opportunity shall be provided. Further, the assessee can file relevant details including affidavit, bank statement or any other details for pleading that Rs.40,00,000/- of income has not been earned by it and it was a inadvertent mistake. Considering the details the Ld. CIT(A) can decide the appeal in accordance with law after providing fair opportunity of hearing to the assessee. The assessee is directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 6. In the result, the assessee’s appeal in ITA No. 513/PUN/2022 is dismissed and the appeal in ITA No. 2221/PUN/2024 is allowed for statistical purposes. Order pronounced on this 08th day of April, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ददन ंक / Dated : 08th April, 2025. RK ITA Nos.513/PUN/2022 & 2221/PUN/2024 4 आदेश की प्रतितलतप अग्रेतिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति, आयकर अपीलीय अतिकरण, “A” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. आदेश नुस र / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अतिकरण, पुणे / ITAT, Pune. "