Shriram Bahu Uddeshiya Sevabhavi Sanstha, Sangli V. The Income Tax Officer(Exemption), Ward, Kolhapur

ITA 446/PUN/2023

AI Insights

The case involves Shriram Bahu Uddeshiya Sevabhavi Sanstha, which appealed against the rectification order passed by the AO under section 154 of the Income-tax Act, 1961, concerning the assessment year 2014-15. The rectification order disallowed depreciation of Rs.33,84,042, which had been initially disallowed in the original assessment order but was omitted in the computation of total income. The assessee contested the sufficiency of the opportunity provided to raise objections during the rectification proceedings, claiming only three days were given, which was inadequate. The Tribunal found merit in the assessee's claim and decided to set aside the rectification order, directing the AO to re-examine the matter after providing a fair opportunity to the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124134 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-06-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 17-04-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Depreciation; Rectification of order

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.446/PUN/2023 नधा रण वष / Assessment Year : 2014-15 Shriram Bahu Uddeshiya Sevabhavi Sanstha, A/P. Karagani, Tal. Atpadi, Dist. Sangli – 415 301 Maharashtra PAN : AAFTS1067C Vs. ITO , Exemption Ward, Kolhapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 21-12-2022 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2014-15. 2. The appeal is time barred by 58 days. The assessee has filed an affidavit explaining the reasons for the delay. I am satisfied with the reasons so stated. The delay is condoned and the appeal is admitted for disposal on merits. Assessee by Shri Pramod Shingte Revenue by Shri Gurmel Singh Date of hearing 09-06-2023 Date of pronouncement 09-06-2023 ITA No. 446/PUN/2023 2 3. I have heard both the sides and gone through the relevant material on record. It is seen that the assessment order in this case was passed u/s.143(3) of the Act on 07-12-2016 determining Nil income. In the rectification order u/s.154, dt. 30-03-2021, the AO recomputed the income after disallowing depreciation of Rs.33,84,042/-, which was although disallowed earlier in the original order but omitted to be considered at the time of computing the total income. The assessee contested the validity of the rectification order u/s.154 before the ld. CIT(A) but without success. 4. The ld. AR submitted that the AO gave only 3 days time to the assessee for raising objections against its point of view in the proceedings u/s.154 of the Act, which was highly insufficient. As the rectification proceedings were getting time barred, the AO finalized the same without granting proper opportunity to the assessee. 5. Considering the entirety of the facts and circumstances prevailing in the instant case, I am of the opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the AO with a direction to pass the rectification order u/s 154 afresh as per law after allowing reasonable opportunity of hearing to the assessee. I order accordingly. ITA No. 446/PUN/2023 3 6. In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 09 th June, 2023. Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 09 th June, 2023 सतीश आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 446/PUN/2023 4 Date 1. Draft dictated on 09-06-2023 Sr.PS 2. Draft placed before author 09-06-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *