Salunki Govindrao Sambhaji, Dharwad V. Deputy Commissioner Of Income Tax, CPC, Bangalore

ITA 504/BANG/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6003 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 30-05-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 10; 139(5); 143(1); 139(1)

Judgement Text

ITA No.504/Bang/2022 Salunki Govindrao Sambhaji, Dharwad IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” “A’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA No.504/Bang/2022 Assessment Year: 2017-18 Salunki Govindrao Sambhaji 11/A, Mathoshri, 3 rd Cross Kalyan Nagar 3 rd Cross, Kalyan Nagar Dharwad Karnataka 580 007 PAN NO : BJDPS1850D Vs. Deputy Commissioner of Income-tax CPC Bangalore APPELLANT RESPONDENT Appellant by : Shri G. Sathyanarayana, A.R. Respondent by : Shri Ganesh R. Ghale, Standing Counsel Date of Hearing : 18.08.2022 Date of Pronouncement : 18.08.2022 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of NFAC, Delhi dated 22.12.2021 for the assessment year 2017-18. The assessee has raised the following grounds:- 1. Illegal order: The order passed by CPC is illegal, baseless an d opposed to the facts of the case. 2. Interest on enhanced compensation: The ass essee r eceived interest from compensation on land acquisition. T he CPC has err ed in making addition of entire incom e from interes t on land acquisition. As per the provis ion o f the Act, interest income is char geable to tax after providing adhoc deduction u/s 57(iv) of t he Act. 143 3. (1) Any other grounds of appeal The assess ee prays leave to add any other gr ou nds of appeal before or at the time of hearing. ITA No.504/Bang/2022 Salunki Govindrao Sambhaji, Dharwad Page 2 of 3 4. Intere st o n enha ncd c ompensation: The inter est r e cei ved on enhanc ed comp ensati on is als o part of c ompens ation and henc e is exe mpt, as compens ation is o n acquisition of agr icultural land. 2. Facts of the case are that during the processing of return of income u/s 143(1)(vi) of the Act made addition of Rs.6,55,116/- u/s 57(iv) of the Act being the interest from compensation on land acquisition and determine the total income at Rs.9,35,120/-. The assessee carried the appeal before Ld. CIT(A). The Ld. CIT(A) observed that the assessee filed a return of income for the assessment year 2017-18 u/s 139(1) of the Act on 25.1.2018 and again revised the return u/s 139(5) of the Act on 25.9.2018. The assessee declared income received in the nature of interest on land acquisition and claimed exemption u/s 10 of the Act. The return of income was processed and intimation u/s 143(1) of the Act was issued by DCIT (CPC) Bangalore. The CPC disallowed the deduction claimed by assessee u/s 57(iv) of the Act being income from interest on land acquisition. The assessee filed a rectification application u/s 154 of the Act, which is not yet been considered. However, the appeal was filed before Ld. CIT(A) with the delay of 21 months and stated that the delay was deemed to pending of petition filed by assessee u/s 154 of the Act for rectification of earlier intimation sent by the CPC. According to the Ld. CIT(A), NFAC, there was no reasonable cause for such inordinate delay. Hence, he unadmitted the appeal of the assessee. In my opinion, if the rectification petition filed by the assessee pending during that period of 21 months, it means that assessee has been pursuing the alternative remedy available to the assessee, so as to seek relief. Being so, the Ld. CIT(A) not justified in dismissing the appeal without admitting the same. Accordingly, I direct the Ld. CIT(A), NFAC to condone the delay if the petition filed by assessee u/s 154 of the Act was actually pending before the authorities during the period of delay of 21 months and decide ITA No.504/Bang/2022 Salunki Govindrao Sambhaji, Dharwad Page 3 of 3 accordingly. With this observation, I remit the issue to the file of Ld. CIT(A). At this time, I refrain from committing anything on merit of the issue raised by the assessee with regard to additions made by CPC. 3. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 18 th Aug, 2022 Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 18 th Aug, 2022. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.