Appeal details
Counselvise Citation
[2023] 102 COUNSELVISE.COM (IT) 5141 (ITAT-KOLKATA)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 month(s) 27 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
20-11-2023
Appeal Filed By
Assessee
Order Result
PartlyAllowed
Bench Allotted
B
Next Hearing Date
05-09-2023
Assessment Year
2014-2015
Appeal Filed On
03-11-2022
Judgement Text
आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘बी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय एवं Įी मनीष बोरड, लेखा सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member and Dr. Manish Borad, Accountant Member I.T.A Nos.613&614/Kol/2022 Assessment years: 2014-15 & 2015-16 Young Mens Welfare Society..................................................................Appellant C/o Subash Agarwal & Associates, Advocates Siddha Gibson, 1, Gibson Lane, Suite 213, 2 nd Floor, Kolkata-700069. [PAN: AAAAY3175H] vs. ADIT (CPC), Bangalore.................................................................Respondent Appearances by: Shri Siddarth Agrawal, FCA, appeared on behalf of the appellant. Shri P. P Barman, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : September 06, 2023 Date of pronouncing the order : November 21, 2023 आदेश / ORDER संजय गग[, ÛयाǓयक सदèय ɮवारा / Per Sanjay Garg, Judicial Member: Both the appeals have been preferred by the assessee against the separate orders dated 19.09.2022 of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). Since, common issues are involved in both the appeals, hence these have heard together and are being disposed of by this common order. 2. Earlier the appeals of the assessee were decided vide order dated 01.05.2023. However, some mistakes apparent on record was noting down and facts were brought to our knowledge vide MA Nos.45&46/Kol/2023. The said M.As were decided vide order dated I.T.A Nos.613&614/Kol/2022 Assessment years: 2014-15 & 2015-16 Young Mens Welfare Society 2 28.07.2023 and the orders of 01.05.2023 in both the appeals were recalled. In view of the above position, the appeals were heard again and are adjudicated as under: 3. The brief facts of the case are that the assessee is an Association of Persons (AOP) who inadvertently filed the return in ITR Form 7 instead of ITR Form No.5. The said return was processed by the Central Processing Centre and thereby the assessee was taxed at maximum marginal rates without giving deduction of expenses. 4. Being aggrieved by the said action, the assessee filed a rectification application u/s 154 of the Act, however, the same was rejected in a mechanical manner by the Assessing Officer. The appeals filed by the assessee have also been dismissed by the ld. CIT(A) holding the same as barred by limitation. 5. Before us, the ld. AR of the assessee has submitted that the appeal filed by the assessee before the CIT(A) is required to be treated within the limitation period as the same was covered by the decision of the Hon’ble Supreme Court in Suomoto Writ Petition (C) No. 3 of 2020 dated 10.01.2022. The ld. Counsel for the assessee has further submitted that the assessee has filed rectification application which has been dismissed by the Assessing Officer in a mechanical manner. However, the claim of the assessee was, therefore, rejected by the CPC and the assessee was taxed at maximum marginal rate without giving deduction of the expenses. However, the assessee filed the M.A which was also rejected by the Assessing Officer. In view of the aforesaid action of the lower authorities without considering the claim of the assessee on merits was not justified. It has been held time and again that the Income Tax Authorities are not supposed to punish assessees for their bona fide mistake. We, therefore, set aside the impugned orders of the lower I.T.A Nos.613&614/Kol/2022 Assessment years: 2014-15 & 2015-16 Young Mens Welfare Society 3 authorities and restore the matter to the file of Assessing Officer with a direction to examine the contentions raised by the assessee and tax the assessee at the rates as applicable to the assessee considering the revised return filed by the assessee. 6. Since the facts and issues involved are identical in both the appeals, therefore, in view of our findings given above, will mutatis mutandis apply to ITA No.614/Kol/2022. 7. In the result, both the appeals of the assessee are treated as allowed for statistical purposes. Kolkata, the 21 st November, 2023. Sd/- Sd/- [डॉÈटर मनीष बोरड /Dr. Manish Borad] [संजय गग[ /Sanjay Garg] लेखा सदèय /Accountant Member ÛयाǓयक सदèय /Judicial Member Dated: 21.11.2023. RS Copy of the order forwarded to: 1. Young Mens Welfare Society 2. ADIT (CPC), Bangalore 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches
AI Insights
The case involves the Young Mens Welfare Society, an Association of Persons (AOP), who filed appeals against the orders of the National Faceless Appeal Centre (CIT(A)), which were passed under section 250 of the Income Tax Act. The primary issue was the incorrect processing of the assessee's return, which was filed in ITR Form 7 instead of ITR Form No.5, leading to taxation at maximum marginal rates without deductions for expenses. The Assessing Officer's rejection of the rectification application under section 154 was deemed mechanical, and the CIT(A) dismissed the appeals as barred by limitation. The Tribunal found that the lower authorities did not consider the assessee's claims on merits and directed a re-examination of the case.
