ITO. INT. TAX, WARD-3(3)(1), MUMBAI V. DEEPALI KIRAN POTNIS, KALYAN

MA 8/MUM/2024

AI Insights

The case revolves around a Miscellaneous Application filed by the Revenue against an order passed by the Income Tax Appellate Tribunal, which favored the assessee, Deepali Kiran Potnis. The Revenue contended that there was a mistake apparent from the record in the Tribunal's earlier decision, which relied on a letter from the assessee to the Assessing Officer (AO) regarding objections filed before the Dispute Resolution Panel (DRP). The Revenue argued that the letter was not officially recorded by the AO, and thus the Tribunal's reliance on it was erroneous. However, the Tribunal dismissed the Revenue's application, emphasizing that the assessee's claim of having submitted the letter was not disputed and that reviewing the matter would constitute an impermissible review of the earlier order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46958 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJKUMAR R. MAKWANA
• Assessee Lawyers: JAYANT BHATT
• Section: 143(3); 254(2)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “I” BENCH : MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER M.A. No. 8/Mum/2024 (Arising out of ITA No. 2153/Mum/2022) Assessment Year : 2018-19 ITO. Int. Tax. Ward-3(3)(1), Room No. 1630, Air India Building, Nariman Point, Mumbai-400021. vs. Deepali Kiran Potnis, Ground Floor, Pradhan Bunglow, Sanglewadi Road, Kalyan, Maharashtra-421301. PAN : AGAPP1693C (Applicant) (Respondent) For Assessee : Shri Jayant Bhatt For Revenue : Shri Rajkumar R. Makwana Date of Hearing : 04-04-2025 Date of Pronouncement : 07-04-2025 O R D E R PER B.R. BASKARAN, A.M : The Revenue has filed this Miscellaneous Application submitting that there are mistakes apparent from record in the order 26-05-2023 passed by the Tribunal in the captioned appeal. 2. The Ld.DR submitted that the AO had passed the draft assessment order for AY 2018-19 and forwarded it to the assessee, as the assessee was an “eligible assessee” within the meaning of sec.144C of the Act. As per the provisions of sec.144C, the assessee can file objections before Ld Dispute Resolution Panel (DRP). If no objection is so filed, then the AO can proceed to pass the final assessment order. The Ld D.R submitted that the AO did not have any information about filing of 2 M.A. No. 8/Mum/2024 objection and hence the AO passed the final assessment order u/s. 143(3) of the Income Tax Act, 1961 („the Act‟) on 15-11-2021. Before the Tribunal, the assessee contended that she has duly intimated to the AO about the fact of filing of objections before Ld DRP. In this regard, the assessee also furnished copy of a letter filed before the AO. However, the said letter did not bear the seal of the AO, but the same was written manually on that letter. The ld D.R submitted that the Tribunal has decided the appeal in favour of the assessee by placing reliance on the intimation letter claimed to have been filed before the AO. 3. The Ld.DR submitted that even though the assessee has claimed to have submitted a letter before the AO, yet the order sheet entries noted in the file of the assessee and recorded in the computer system of department did not mention about the letter, if any, filed by the assessee intimating the AO about the objections filed before the Ld.DRP. In the absence of any information, the AO has proceeded to pass the final assessment order. Accordingly, the Ld.DR submitted that the action of the AO should not be found fault with. He submitted that the Tribunal has, however, recognized a letter claimed to have been filed manually before the AO and accordingly quash the assessment order passed by the AO. He submitted that the letter filed manually should not have been recognized by the Tribunal and it has resulted in a mistake apparent from record. Accordingly he prayed that the order passed by the Tribunal may be recalled. 4. On the contrary, the Ld.AR submitted that the fact that the assessee has already intimated the AO about the objections filed before the Ld.DRP is supported by the copy of letter filed before the AO. He submit that the assessee cannot be penalized for the failure of the income tax department in not entering the details of the lettyer in the computer system of the AO. He further submitted that the Tribunal has 3 M.A. No. 8/Mum/2024 rendered its decision on the basis of the evidences furnished by the assessee. Hence, the present petition filed by the Revenue would result in review of the order passed by the Tribunal, which is not permitted u/s. 254(2) of the Act. 5. We heard the rival contentions and perused the record. As submitted by Ld A.R, the Tribunal has passed the order on the basis of evidences furnished by the assessee, which included copy of letter filed by the assessee with the AO intimating the objections filed by her before the Ld.DRP. It is now submitted that in this petition that the proceedings noted down in the order sheet did not mention about the objections, if any, filed by the assessee before the Ld.DRP. However, we notice that the claim of the assessee that she had filed the intimation letter physically before the AO has not been disputed. Hence, it may be a case of failure on the part of the department. In any case, as rightly submitted by the Ld.AR, the consideration of new documents/contentions at this stage would result in review of the order already passed by the Tribunal, which is not permitted u/s. 254(2) of the Act. Accordingly, we do not find any merit in the present Miscellaneous Application. Accordingly, we dismiss the Miscellaneous Application filed by the Revenue. 6. In the result, the Miscellaneous Application of the Revenue is dismissed. Order pronounced in the open court on 07-04-2025 Sd/- Sd/- [ANIKESH BANERJEE] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 07-04-2025 TNMM 4 M.A. No. 8/Mum/2024 Copy to : 1. The Applicant 2. The Respondent 3. The Pr. CIT concerned 4. The D.R. ITAT, Mumbai 5. Guard File. //By Order// //True Copy // Dy./Asst. Registrar, ITAT, Mumbai "