KANIKA ABBOTT,DELHI V. INCOME TAX OFFICER, WARD - 28(1), DELHI

ITA 794/DEL/2025

AI Insights

The case involves Kanika Abbott, the appellant, who filed an appeal against the order of the CIT(A) Udaipur, which dismissed her appeal regarding the non-allowance of deductions under the old tax regime. The primary issue was the incorrect processing of her income tax return under the old regime instead of the new tax regime (section 115BAC) which she had opted for by filing Form 10E. The AO had recomputed her income without considering the deductions under Chapter VIA, amounting to Rs. 1,81,000. The Tribunal heard the arguments from both sides and decided to remit the case back to the AO for a detailed verification of the claimed deductions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314028 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SHYAM MANOHAR SINGH
• Assessee Lawyers: PRAMOD JAIN; MUKUL GUPTA
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 80C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘SMC’’ : NEW DELHI) BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT ITA No. 794/Del/2025 Asstt. Year : 2022-23 KANIKA ABBOTT, VS. ITO, WARD-28(1), D-960, NEW FRIENDS COLONY, CIVIC CENTRE, NEW DELHI NEW DELHI (PAN: ADGPA3311H) (Appellant) (Respondent) Appellant by : Sh. Pramod Jain, CA & Sh. Mukul Gupta, Adv. Respondent by : Sh. Shyam Manohar Singh, Sr. DR. Date of Hearing 06.05.2025 Date of Pronouncement 06.05.2025 ORDER This appeal by the assessee is emanating from the order of the Ld. Addl/JCIT(a) Udaipur in Appeal No. ITBA/APL/S/250/2024-25/1071368490(1) dated 19.12.2024. 2. Brief facts of the case are that return of income was filed by the assessee for the year under consideration after the due date as per section 139(1) of the Act and the provisions of section 115BCA(5) of the Act are clearly applicable since the assessee failed to make the claim of opting for the New Tax Regime by filing the return of income alongwith Form 10IE as per section 139(1) of the Act. Hence, AO(CPC) processed the income tax return filed under the old regime instead of new regime and recomputed the income at Rs. 24.34 lacs under the old regime without 2 | P a g e giving the benefit of deductions under chapter VIA amounting to Rs. 1,81,000/-. Ld. CIT(A) noted that as per the provisions of section 115BAC(5) of the Act the benefit of New Tax Regime as claimed by the assessee is not allowable and accordingly, he dismissed the appeal of the assessee. Against the ld. CIT(A) appeal assessee is in appeal before the Tribunal. 3. Ld. AR for the assessee submitted that the assessee filed return u/s. 115BAC (New Tax Regime) via Form 10E on 30.12.2022, opting for lower tax rates by forgoing exemptions/ deductions. However, AO/CPC processed the income tax return filed under the old regime instead of new regime. The AO(CPC) recomputed the income at Rs. 24.34 lacs under the old regime without giving the benefit of deductions under Chapter-VIA amounting to Rs. 1,81,000/- viz. u/s. 80C Rs. 1,50,000/-; u/s. 80D Rs. 25,000/- and u/s. 80TTA Rs. 6000/-. It was further submitted that AO(CPC) creates the demand without providing an opportunity of being heard and violates principle of natural justice. It was the further contention that during the year consideration, assessee has made the payment towards LIC, Mutual Fund, Medical Insurance and having saving bank interest which are allowable as deduction u/s. 80C, 80D and 80TTA of the Act. Ld. DR relied upon the order of the authorities below. 4. Heard both the parties and perused the records. In view of the aforesaid peculiar facts and circumstances of the case, I find considerable cogency in the contention of the Ld.AR that since assessee has made the payment towards LIC, Mutual Fund, Medical Insurance and having saving bank interest which are 3 | P a g e allowable as deduction u/s. 80, 80D and 80TTA of the Act, which the AO has not allowed. Therefore, in the interest of justice, the matter require to be remitted back to the file of the AO for verification purposes, whether the assessee has made the payment correctly in order to claim the deductions u/s. 80C, 80D and 80TTA, and if it is found in order, the said deductions may be allowed, in accordance with law. 5. In the result, the Assessee’s appeal is allowed for statistical purposes. Order pronounced in the Open Court on 06.05.2025. Sd/- (MAHAVIR SINGH) VICE PRESIDENT SRBhatnagar Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Bench "