Navin Jain, Mumbai V. ACIT, International Taxation, Circle-2(1), Kolkata, Kolkata

ITA 479/KOL/2022

AI Insights

This case involves an appeal by Navin Jain against the order of the Assistant Commissioner of Income Tax, Circle-2(1), International Taxation, Kolkata, which was dated 29.06.2022 for the Assessment Year 2019-20. The primary issue in the appeal was the erroneous demand of Rs. 28,12,435/- raised by the AO while giving effect to the directions of the Dispute Resolution Panel (DRP). The DRP had previously directed the deletion of an addition in the draft assessment order, leading to the acceptance of the income returned by the assessee. However, the AO's subsequent demand was based on a miscalculation. Both parties agreed that the matter should be re-examined by the AO for necessary rectification.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127341 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 29-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 24-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘‘सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA ी संजय गग या यक सद य एवं ी राजेश क ु मार, लेखा सद य के सम [Before Shri Sanjay Garg, Judicial Member &Shri Rajesh Kumar, Accountant Member] I.T.A. No. 479/Kol/2022 Assessment Year: 2019-20 Navin Jain (PAN: ACQPJ 6363 D) Vs. ACIT, Circle-2(1), International Taxation, Kolkata Appellant / (अपीलाथ ) Respondent / (!"यथ ) Date of Hearing / स ु नवाई क% त'थ 30.03.2023 Date of Pronouncement/ आदेश उ*घोषणा क% त'थ 21.04.2023 For the Appellant/ नधा 0रती क% ओर से Shri Vishal Karla, A.R For the Respondent/ राज व क% ओर से Smt. Ranu Biswas, Addl. CITDR ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Assistant Commissioner of Income Tax, circle- 2(1), International Taxation (hereinafter referred to as the AO”] dated 29.06.2022 for the AY 2019-20. 2. The only issue raised by the assessee is against the order of AO giving effect to the DRP direction wherein the AO has raised a erroneous demand of Rs. 28,12,435/- while returned income has been accepted in pursuant to the DRP direction. 3. The Ld. A.R submitted that the issue has been allowed by DRP in favour of the assessee by directing the AO to delete the addition in the draft assessment order and 2 I.T.A. No. 479/Kol/2022 Assessment Year: 2019-20 Navin Jain consequently the income returned by the assessee as per the return of income came to be accepted by the AO but while giving the effect to the order of DRP , the AO has wrongly raised a demand of Rs. 28,14,435/- which has happened due to wrong calculation done on the part of the AO. The Ld. A.R therefore prayed that the AO may be directed to make re-computation and correct the mistake committed in the order giving effect to DRP order. 4. The Ld. D.R fairly agreed the issue may be sent to the AO to look into the matter and carry out necessary rectification. 5. After hearing the rival contention and perusing the material on record, we note that the issue at hand is that when the income returned by the assessee has been accepted how there can be a demand raised on the assessee to the tune of Rs. 28,14,435/- by the AO. In our opinion, the issue is required to be examined at the level of AO so that the order giving effect to the DRP direction could be re-examined and necessary rectification can be made. Accordingly we restore the issue back to the file of the AO with the direction to re-compute the same after giving a reasonable opportunity of hearing to the assesse. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 21 st April, 2023 Sd/- Sd/- (Sanjay Garg / संजय गग ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 21 st April, 2023 SB, Sr. PS 3 I.T.A. No. 479/Kol/2022 Assessment Year: 2019-20 Navin Jain Copy of the order forwarded to: 1. Appellant- Navin Jain, Flat no. 403, Dosti Flamingo, Tokershi Jivraj Marg, Mumbai-400015 2. Respondent – ACIT, Circle-2(1), Kolkata 3. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata