M/s Pashu Pakshi Aushadhalaya, Pune V. Income-Tax Officer, Ward 6(3), Pune

ITA 869/PUN/2022

AI Insights

The case involves M/s. Pashu Pakshi Aushadhalaya, the appellant, contesting an order from the Commissioner of Income Tax (Appeals) which upheld a rectification order under section 154 of the Income Tax Act. The rectification was initially sought due to an incorrect adjustment in the income under the head 'Business & Profession' following an assessment under section 143(1). The assessee claimed that the capital gains were correctly reported and an exemption under section 54EC was claimed, which was not acknowledged in the rectification. The CIT(A) dismissed the appeal stating it was beyond the scope of section 154, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134346 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 05-02-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 01-12-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Opportunity of being heard; Capital Gains
• Section: 154; 143(1); 54EC

Judgement Text

आयकर अपीलीय अिधकरण “बी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B” :: PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.869/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 M/s.Pashu Pakshi Aushadhalaya, Apartment 1105/13, H.K.M.RD, Harekrushna Mandir Road, Pune – 411016. PAN: AACFP 6731 F V s The Income Tax Officer, Ward-6(3), Pune. Appellant/ Assessee Respondent /Revenue Assessee by Shri C.H.Naniwadekar – AR Revenue by Shri M.G.Jasnani – DR Date of hearing 06/02/2023 Date of pronouncement 08/02/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the Assessee is directed against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], Delhi dated 10.11.2022 for A.Y.2020-21 emanating from the order of Assessing Officer passed under section 154 dated 22.04.2022 passed by ADIT(CPC). The grounds of appeal raised by the assessee are as under : “1. The learned CIT(A) erred on facts in law in not rectifying the mistake apparent from records thereby upholding the order u/s 154 of the Act. The learned CIT(A) failed to appreciate the facts, the ITA No.869/PUN/2022 M/s.Pashu Pakshi Aushadhalaya [A] 2 law as well as the submissions made by the assessee in its proper perspective. 2. The appellant craves leave to add, later, delete or substitute all or any of the above grounds of appeal.” Submission of ld.AR : 2. The ld.Authorised Representative(ld.AR) of the assessee submitted that assessee had correctly shown the capital gain amount and claimed exemption under section 54EC of the Act. However, order under section 143(1) was passed reducing the amount of Rs.32,92,636/- and increase the income under head Business & Profession. Assessee filed rectification application before CPC. CPC has not rectified the defect pointed out by the assessee, but increased amount of income considered under heads “Business & Profession” by Rs.96,850/- to Rs.1,18,132/-. CPC has not given any reason in the order. Aggrieved by the order of the CPC, the assessee filed appeal before the ld.CIT(A). However, the ld.CIT(A) has not adjudicated the issue and merely mentioned that it is outside the purview of the section 154. The ld.AR submitted that all the facts and figures are clearly mentioned in the Return of Income filed by the assessee. He invited our attention to page no.61 of the paper book which was schedule BP i.e. computation of income from business or profession. To demonstrate that assessee has shown the correct figures, then the ld.AR invited our attention to page no.74 ITA No.869/PUN/2022 M/s.Pashu Pakshi Aushadhalaya [A] 3 and 75 of the paper book where assessee has shown capital gain and calculation of claim under section 54EC deduction. Thus, the ld.AR stated that CPC has not considered all the data which was available with them and hence it was mistake apparent from the record, therefore, the ld.CIT(A) had jurisdiction to adjudicate, but the ld.CIT(A) failed to adjudicate. 3. The ld.Departmental Representative(ld.DR) for the Revenue admitted the fact. Discussion and Findings : 4. We have heard both the parties and perused the records. Assessee has shown calculation of long term capital gain in the Return of Income as under : ITA No.869/PUN/2022 M/s.Pashu Pakshi Aushadhalaya [A] 4 5. Thus, assessee has shown proper calculation of capital gains and claimed 54EC deduction, however, ADIT(CPC) has made adjustment under section 143(1) against which assessee filed rectification Application under section 154 of the Act. CPC passed rectification order without considering assessee’s submission. CPC has not given any reasons in the rectification order. Assessee filed appeal before the ld.CIT(A) against the order under section 154 of the Act. The ld.CIT(A) has merely stated that the grounds of appeal raised by the assessee are beyond the scope of section 154 of the Act. We are of the opinion that ld.CIT(A) failed to appreciate the facts narrated by the assessee in the submissions and documents filed by ITA No.869/PUN/2022 M/s.Pashu Pakshi Aushadhalaya [A] 5 the assessee. In this case, all the facts are emanating from the Return of Income filed by the assessee. Hence, ld.CIT(A) has to consider Return of Income and the rectification application filed by the assessee. The ld.CIT(A) has not discussed these facts. The ld.CIT(A) has failed to pass a speaking order, therefore in the interest of justice we set-aside the order to the ld.CIT(A) for denovo adjudication. The ld.CIT(A) shall give opportunity of being heard to the assessee before passing the order. Accordingly, grounds raised by the assessee are allowed for statistical purpose. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 8 th February, 2023. Sd/- Sd/- (S.S.GODARA) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 8 th Feb, 2023/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “बी” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.