SAMPURNA FAMILY TRUST,KOLKATA V. INCOME TAX OFFICER, MUMBAI

ITA 6730/MUM/2024

AI Insights

The case involves Sampurna Family Trust appealing against the order of the CIT(A) dated 06.11.2024 for the Assessment Year 2018-19. The primary contention was regarding the disallowance of exempt income, which included dividend income from a domestic private company and accrued interest on a tax-free bond of IREDA, totaling Rs. 12,50,016. The assessee argued that the return filed was erroneous and defective, and thus, the intimation issued by the Central Processing Center (CPC) was invalid. The Tribunal did not delve into the validity of the return but restored the matter to the AO to allow the assessee to substantiate their claims afresh.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126345 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIJAY KR. G. SUBRAMANYAM
• Assessee Lawyers: SUTAPA ROY CHOUDHURY AW
• Keywords: Revised return; Earning of tax free income; Jurisdictional AO; Grounds of appeal; Disallowing; AMP; Statistical purposes; Restored; Exempt; Order under section 254
• Section: 143(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH MUMBAI BEFORE: SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 6730/MUM/2024 (AY:2018–19) (Physical Hearing) Sampurna Family Trust Ashirwad Building, 23, Kalidas Patitundi Lane, Kolkata-700026. Vs. Income Tax Officer Ward-29(1), Aayakar Bhawan, Dakshin,2,Gariahat Road, (South), Kolkata, PIN:700031. PAN: AALTS3763P (Appellant) .. (Respondent) Assessee by Ms. Sutapa Roy Choudhury a/w Ms. Aratrika Roy Advocates Revenue by Shri. Vijay Kr. G. Subramanyam, Sr. DR Date of Hearing 21/04/2025 Date of Pronouncement 21 /04/2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH , JUDICIAL MEMBER; 1. This appeal by the assessee is directed against the order of ld CIT(A) dated 06.11.2024 for A.Y. 2018-19. 2. The rival submission of both the parties have been heard and recalled. The Ld. AR of the assessee submits that though the assessee has raised multi grounds of appeal however the substantial relief claimed by assessee relates to the dividend income received from domestic private Ltd. Company of Rs. 6,51,516/-, being exempt under section 10(34) and accrued interest on tax free bond of IREDA of Rs. 5,98,500/-. The Ld. AR of the assessee fairly submits that no valid return was filed by the assessee. The return of income filed by the assessee in ITR form 7 was erroneous and defective. Thus, intimation issued by Central Processing Center (OPC) on said return is also invalid as same could not be processed under section 143(1). Thus, disallowance/adjustment of exempt income is bad in law. However, the Ld. AR of ITA no. 6730/MUM/2024 Sampurna Family Trust (AY 2018-19) 2 the assessee submit that to cut short the controversy in the present appeal, the matter may be restored to the file of Jurisdiction Assessing Officer (AO) to consider the fact afresh. The assessee may be given liberty to substantiate their claim before Jurisdictional AO. The Ld. AR further fairly accepted the fact that AO was not entitled to accept revised claim or computation in absence of revised return. However, as time limit for filing revised return has lapsed but such limitation is not applicable on the power of appellate authority to entertain such claim or additional claim even in absence of revised return. Therefore, the AO may be given direction to pass the assessment order afresh on considering the submissions of assessee. 3. On the other hand, Ld. DR for the revenue supported the order of lower authorities. 4. I have considered the submission of both the parties and have gone through the order of lower authorities. I find that CPC while issuing intimation under section 143(1) on 13.03.2020 made adjustment of Rs. 12,50,016/- by disallowing exempt income, which consist of dividend income from domestic Private company and accrued interest on the bond of IREDA . Before me, the Ld. AR of the assessee explained the component of exempt being exempt under section 10(34) and interest on IREDA tax free bond. I find that there is no consideration or adjudication of such issue of merit. I instead of going into further controversy whether return of income filed by assessee is erroneous or invalid, restore the matter to the file of Jurisdictional AO with the liberty to the assessee to file its revised computation of income to substantiate their claim. The Jurisdictional Officer is also directed to treat the return income of 139(9) as return under section 131(1) . The AO is directed to pass the order after giving reasonable opportunity to the assessee. The assessee is also directed to be more vigilant in future and to make timely compliance. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. ITA no. 6730/MUM/2024 Sampurna Family Trust (AY 2018-19) 3 5. In the result, appeal is allowed for statistical purposes. Order pronounced in open court on 21.04.2025 at the time of hearing. Sd/- (PAWAN SINGH) JUDICIAL MEMBER Mumbai; Dated 21 /04/2025 Anandi Nambi, Steno Copy of the Order forwarded to: BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. "