M/S. SOFTZONE TECHPARK PVT. LTD.,KOLKATA V. ACIT, CIRCLE 1(1), , KOLKATA

ITA 613/KOL/2025

AI Insights

The case involves M/s Softzone Techpark Pvt. Ltd., the appellant, contesting an order under section 250 of the Income Tax Act, 1961, passed by the Ld. Commissioner of Income Tax (Appeals), Addl./JCIT(A)-2, Coimbatore. The primary contention was regarding the applicability of an old CBDT Circular which the Ld. Addl./JCIT(A) erroneously followed, leading to a refusal to adjudicate on the substantive issues raised in the appeal. The Tribunal found that the intimation under section 143(1) of the Act is indeed appealable and criticized the Ld. Addl./JCIT(A) for not adhering to the clear provisions of the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711443 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Ignorance of law
• Section: 154

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH”, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 613/KOL/2025 Assessment Year: 2021-22 M/s Softzone Techpark Pvt. Ltd., C/o M/s Salarpuria Jajodia & Co., 5, C.R. Avenue, 4th Floor, Kolkata - 700072 [PAN: AAMCS5238D] ……..…...…………….... Appellant vs. ACIT, Circle-1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata - 700069 ................................. Respondent Appearances by: Assessee represented by : Siddharth Jhajharia, FCA Department represented by : Sanat Kumar Raha, CIT-DR S.B. Chakraborthy, Sr. DR Date of concluding the hearing : 22.07.2025 Date of pronouncing the order : 24.07.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. The present appeal emanates from order u/s 250 of the Income Tax Act, 1961, passed by the Ld. Commissioner of Income of Income Tax (Appeals), Addl./JCIT(A)-2, Coimbatore [hereafter “the Ld. Addl/JCIT(A)], vide order dated 30.01.2025. 1.1 In this case, right at the outset, the Ld. AR pointed out the operational portion of the impugned order [para 6.9]. To appreciate the controversy the said paragraph needs to be reproduced as under: “6.9 In view of above discussion, as per the clarification issued by the CBDT vide circular no 549 dated 31.10.1989, the intimation passed by CPC u/s 143(1) is merely an adjustment, but not a valid order to file appeal. As the appellant has not been provided an opportunity of being heard by AO-CPC before passing order Printed from counselvise.com 2 ITA No. 613/Kol/2025 M/s Softzone Techpark Pvt. Ltd. u/s 143(1), the AO is directed to obtain necessary details from the appellant to decide the merits of the case in the light of above discussion and pass necessary order after providing sufficient opportunities of being heard u/s 154 on suomotto. The appellant may furnish all the details as requested by AO for passing order u/s 154. For statistical purpose, this ground is treated as allowed.” 1.2 The Ld. AR drew our attention to the fact that the Ld. Addl/JCIT(A) had misdirected himself in following an old CBDT Circular dated 31.10.1989 and refused to adjudicate on the issues before him. The Ld. AR prayed that the first appellate authority should be directed to adjudicate on the grounds of appeal as per Form 35 filed before him. 2. The Ld. DR was asked for comments and he left it to the wisdom of the Bench to pass an appropriate order in this matter. 3. We have carefully perused the records before us and have also gone through the relevant provisions which govern appealable orders before the Ld. JCIT(A). We find that as per section 246(1)(a) of the Act, the intimation u/s 143(1) of the Act is appealable before the JCIT(A). In light of this clear- cut provision of the Act, it is felt that the Ld. Addl./JCIT(A) has displayed a rare ignorance of law and given his findings in the impugned order at para 6.9 (supra). We set aside the impugned order and remand this matter back to the file of Ld. Addl/JCIT(A) to pass a speaking order with respect to the grounds of appeal as per the Form 35, after giving an opportunity of being heard to the assessee. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 24.07.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 24.07.2025 AK, Sr. P.S. Printed from counselvise.com 3 ITA No. 613/Kol/2025 M/s Softzone Techpark Pvt. Ltd. Copy of the order forwarded to: 1. M/s Softzone Techpark Pvt. Ltd. 2. ACIT, Circle-1(1), Kolkata 3. CIT(A) 4. CIT 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "