Gai Projects Pvt. Ltd., Kolkata V. ITO, Ward-12(1), Kolkata

ITA 219/KOL/2023

AI Insights

The case involves Gai Projects Pvt. Ltd., which appealed against the order of the CIT(A), National Faceless Appeal Centre, which upheld the addition of Rs.95,37,659 to the assessee's income under the head 'income from business and profession' as per the intimation under section 143(1) of the Income-tax Act, 1961. The addition was made by the Assessing Officer, CPC, without any prior notice or opportunity for the assessee to contest the addition. The CIT(A) dismissed the appeal on the grounds that the assessee had filed a rectification petition under section 154, which merged the intimation with the order passed under section 154, thus making the intimation non-appealable. The Tribunal found this reasoning unconvincing and set aside the CIT(A)'s order, allowing the assessee's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125086 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-10-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 16-03-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return; Set aside
• Section: 154; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA [Before Shri Rajpal Yadav, Vice President and Shri Rajesh Kumar, AM] I.T.A. No. 219/Kol/2023 Assessment Year: 2020-21 Gai Projects Pvt. Ltd. 29A, Nandan Road, 1 st Floor, Kolkata- 700025. (PAN: AADCG3071B) Vs. Income Tax Officer, Ward-12(1), Kolkata. Appellant Respondent Date of conclusion of Hearing 13.10.2023 Date of Pronouncement 13.10.2023 For the Assessee Shri Narendra Kedia, Advocate For the Respondent Shri P. P. Barman, Addl. CIT, Sr. DR ORDER Per Shri Rajesh Kumar, AM Appeal filed by the assessee is against the order of Ld. CIT(A), Income Tax Department, National Faceless Appeal Centre (NFAC) dated 20.01.2023 for AY 2020-21. 2. The only issue raised by the assessee in the various grounds of appeal is against the order of Ld. CIT(A) upholding the order passed u/s. 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) by AO, CPC wherein an addition of Rs.98,37,659/- was made without giving notice/opportunity to the assessee before making the addition. 3. Brief facts of the case are that the assessee filed return of income on 19.11.2020 declaring nil income with book profit under MAT of Rs.24,07,286/-. Thereafter, the assessee filed revised return on 18.12.2020. The AO, CPC processed the return and issued intimation u/s. 143(1) of the Act making an addition of Rs.95,37,659/- under the head income from business and profession without giving any notice to the assessee of such addition. 4. The aggrieved assessee filed an appeal before the Ld. CIT(A) and the Ld. CIT(A) dismissed the appeal by holding that the assessee has filed rectification petition before AO, CPC besides, filing appeal before Ld. CIT(A) against the intimation u/s. 143(1) of the Act. Ld. CIT(A) noted that rectification u/s. 154 of the Act was passed by AO, CPC rejecting the contention of the assessee vide order dated 14.12.2021 and, therefore, the intimation issued 2 ITA No. 219/Kol/2023 Gai Projects Pvt. Ltd., AY 2020-21 u/s. 143(1) is merged with the order passed u/s. 154 of the Act and the latest available order for appeal is the order u/s. 154 dated 14.12.2021 and the assessee ought to have preferred appeal against the said order. 5. After hearing the rival contentions and perusing the material available on record, we find that the Ld. CIT(A) has dismissed the appeal of the assessee on technicalities without going into the merit of the case but as a matter of fact, we observe that while processing the return of the assessee and passing order u/s. 143(1) of the Act, the assessee was not given any opportunity or notice of hearing qua the addition before passing the said order u/s. 143(1) of the Act. In our opinion, it is mandatory requirement failing which the addition of Rs.95,37,659/- cannot be sustained. Ld. CIT(A) has dismissed the appeal merely on the ground that assessee has moved petition u/s. 154 of the Act against the intimation u/s. 143(1) besides filing of appeal before the Ld. CIT(A). Ld. CIT(A) noted that in the meantime order u/s. 154 of the Act was passed on 24.12.2021 which was assailable before the Ld. CIT(A) and not the intimation issued u/s. 143(1) which stands merged with the order passed u/s. 154 of the Act. The said reasoning given by Ld. CIT(A) is not cogent and convincing. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to delete the addition. Appeal of the assessee is allowed. 6. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 13th October, 2023 Sd/- Sd/- (Rajpal Yadav) (Rajesh Kumar) Vice President Accountant Member Dated: 13th October, 2023 JD, Sr. PS Copy of the order forwarded to: 1. Appellant– 2. Respondent . 3. CIT(A), NFAC, Delhi 4. CIT, 5. DR, ITAT, Kolkata, True Copy By Order Assistant Registrar ITAT, Kolkata Bench, Kolkata