P.R.POLYMERS, Satara V. Assistant Commissioner of Income Tax, Circle-,Satara, Satara

ITA 681/PUN/2022

AI Insights

The case involves P. R. Polymers appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed the denial of set-off of brought forward losses by the Asstt. Director of Income Tax, Central Processing Centre, Bengaluru, for the assessment year 2019-20. The primary contention was regarding the treatment of the income return filed for A.Y. 2011-12 as a belated return under section 139(4) of the Income Tax Act, 1961, which was contested by the appellant who claimed it was filed under section 139(1). The ITAT found that the Learned Commissioner of Income Tax (Appeals) had passed an ex-parte order without adjudicating the rights and liabilities of the appellant, thus deserving one final opportunity to present its case with proper documentary evidence.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136316 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 26-12-2022
• Assessment Year: 2019-2020
• Appeal Filed On: 13-09-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1); 250; 139(1)

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “सी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “C” BENCH, PUNE BEFORE HON’BLE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपीलसं. / ITA No. 681/PUN/2022 कर धििाारण वर्ा / Assessment Year :2019-20 P. R. Polymers, M66, Addl. MIDC, Satara-415004 PAN : AAHFP7727J . . . . . . . अपीलाथी / Appellant बिाम / V/s. Asstt. Director of Income Tax CPC, Bengaluru. . . . . . . .प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri A V Iyer Revenue by : Shri Suhas Kulkarni सुनवाई की तारीख / Date of conclusive Hearing : 27/12/2022 घोषणा की तारीख / Date of Pronouncement : 06/01/2023 आदेश / ORDER PER G. D. PADMAHSHALI, AM; The present appeal laid against order of National Faceless Appeal Centre, Delhi [for short “NFAC”] dt. 01/07/2022 passed u/s 250 of the Income Tax Act, 1961 [for short “the Act”] confirming the denial of set- off of brought forwarded losses by the Asstt. Director of Income Tax, Central Processing Centre, Bengaluru [for short “CPC”] u/s 143(1) of the Act for assessment year [for short “AY”] 2019-20. P. R. Polymers ITA No.681/PUN/2022 PAN: AAHFP7727J ITAT-Pune Page 2 of 4 2. The appeal brought up on the following grounds; “1. The learned CIT Appeals (NFAC Delhi, has erred in treating the return of Income filed for A.Y. 2011-12 as belated return filed U/s 139(4), and accordingly disallowing the carry forward of loss of Rs.13,58,660/-, during the course of assessment of A.Y. 2019-20. The action of the learned CIT Appeals is not justified on the following grounds. 1.1. The return has been filed U/s 139(1) and not U/s 139(4). The copy of Return clearly depicts the fact that, it has been filed U/s 139(1). Had the assessee filed a belated Return the Copy of Return will reflect that it has been filed U/s 139(4). 1.2. The Copy of screen shot taken at the time of filing of Income Tax return clearly shows that xml filed has been created and uploaded on 11.55 P.M. on 30-09- 2022, which was the last date for filing of Income tax Return U/s 139(1), for assessment year 2011-12. 2. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.” 3. We note that, this appeal is filed accompanying an affidavit explaining the reasons for 14 days delay. On perusal thereof and after hearing to Ld. DR, we find reasons bonafied, which indeed prevented the assessee in preferring the appeal in time, therefore in the larger interest of justice, delay stands condoned. P. R. Polymers ITA No.681/PUN/2022 PAN: AAHFP7727J ITAT-Pune Page 3 of 4 4. At the outset, the Ld. AR submitted that, the order passed by the Ld. CIT(A) is an ex-parte order basing on statement of facts and grounds of appeal as per Form-35 and contended no consideration was given to merits of the case. The Ld. AR prayed that one final opportunity may be provided so that the matter may be represented on merits before the Ld. AO. Au contraire, the Ld. DR objected the prayer arguing that, once the appeal is decided on the basis of material available on records; there remains no reason to duplicate assessment by remand back to Ld. AO. 5. We have perused the case records, heard the rival contentions and after giving thoughtful consideration we find that Ld. FAA has passed an ex-parte order where rights and liabilities of appellant were not adjudicated upon. Since there was no appearance on record by the assessee and order of Ld. CIT(A) was based only on i.e. statement of facts, grounds of appeal filed by the assessee and the assessment order, in our considered opinion, the assessee deserves one final opportunity to support its case P. R. Polymers ITA No.681/PUN/2022 PAN: AAHFP7727J ITAT-Pune Page 4 of 4 through proper documentary evidences to showcase that return in its case for AY 2011-12 was filed u/s 139(1) of the Act, thus in the larger interest of justice, we set aside the order of Ld. CIT(A) and restore the matter to the file of Ld. AO for de-nova adjudication on the issue to decide the claims for set-off after providing reasonable opportunity of hearing to the assessee and at the same time, the appellant is directed to present itself or through representative before the AO seeking no unreasoned adjournment. 6. Resultantly, the appeal of the appellant is ALLOWED FOR STATISTICAL PURPOSE in above terms. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Friday 06 th day of January, 2023. -S/d- -S/d- S. S. GODARA G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 06 th day of January, 2023. आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1.अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT, Pune 4. The CIT Concerned, Pune 5. DR, ITAT, Pune “C” Bench, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.