SHRI SANT GADGE MAHARAJ SUT GIRNI LTD,AKOLA V. DCIT CIRCLE 1 , AKOLA

ITA 21/NAG/2024

AI Insights

The case involves Shri Sant Gadge Maharaj Sut Girni Ltd., the appellant, challenging an order from the Commissioner of Income Tax (Appeals) regarding an unjust tax demand for the assessment year 2018-19. The appellant had filed a return declaring a loss with no tax payable, which was accepted in the regular assessment. However, a tax demand was erroneously computed and presented in the assessment order. The CIT(A) dismissed the appeal without addressing the merits, leading to the current appeal before the Tribunal. The Tribunal, upon reviewing the materials and arguments, found the demand calculation to be flawed and uncollectable, leading to the quashing of the demand.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24439 (ITAT-NAGPUR)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 15-01-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: KISHORE P. DEWANI
• Keywords: Set aside
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER SMC MATTER ITA no.21/Nag./2024 (Assessment Year : 2018–19) Shri Sant Gadge Maharaj Sut Girni Ltd. Keshav Nagar, Near Tirupati Tantra Niketan College, Akola 444 001 PAN – AAAJS0601B ……………. Appellant v/s Dy. Commissioner of Income Tax Circle–1, Akola ……………. Respondent Assessee by : Shri Kishore P. Dewani Revenue by : Shri Abhay Y. Marathe Date of Hearing – 01/10/2024 Date of Order – 08/10/2024 O R D E R The assessee has filed the present appeal challenging the impugned order dated 11/08/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2018–19. 2. The assessee has raised following grounds:– “1. The learned A.O. erred in raising demand of Rs.2.62.054/- inspite of income determined in the regular assessment framed at Rs. Nil. 2) The demand of Rs.2.62.054/- raised in the assessment framed u/s 143(3) of I.T. Act 1961 and order passed on 18/02/2021 is illegal. invalid and bad in law. 3) The leaned GIT(A) erred in dismissing the appeal without deciding the merits of grounds in the appeal filed by assessee. 2 Shri Sant Gadge Maharaj Sut Girni Ltd. ITA no.21/Nag./2024 4) The learned CIT(A) ought to have directed to cancel the demand raised in view of income determined in the case of assessee at Rs.Nil. 5) The learned CIT(A) has dismissed the appeal without providing reasonable opportunity of being head and consequent order passed is bad in law and unjustified. 6) Any other ground shall be prayed at the time of hearing.” 3. Facts in Brief:– The assessee, for the year under consideration, filed its return of income on 29/09/2018, declaring loss and no tax payable. The order under section 143(3) of the Income Tax Act, 1961 (\"the Act\") was passed accepting the returned income without any modification to the returned income. But, as per the computation sheet, the tax payable was shown at ` 2,62,054. 4. The learned CIT(A) dismissed the appeal on the ground of non– persuasion despite repeated opportunities were granted. 5. The learned Counsel for the assessee submitted before us that the regular assessment was framed under section 143(3) of the Act on 18/02/2021, wherein at Para–4, it has been noted that returned income has been accepted. However, Page–1 of the assessment order clearly indicates that the returned income is ` zero, shown at Col. No.13. Hence, the assessed income naturally will be ` zero. The ta computation attached along with assessment order had determined demand of ` 2,62,054, which was challenged in the first appellate proceedings wherein the learned CIT(A) has dismissed the appeal for non–receipt of any response from the assessee. The order of the learned CIT(A) has not discussed the merits of ground raised. 3 Shri Sant Gadge Maharaj Sut Girni Ltd. ITA no.21/Nag./2024 The learned CIT(A) has merely dismissed by noting that the learned CIT(A) is agreeing with the approach of the Assessing Officer without indicating any reason on merit of the case. 6. The learned Departmental Representative relied upon the order of the authorities below. 7. Having given a thoughtful consideration to the arguments made by the rival parties and having perused the material available on record, we are of the considered opinion that in view of the peculiarity of the dispute and after considering the arguments of the parties in unison, normally, this case was fit for restoring the entire matter to the file of the learned CIT(A) for denovo adjudication. However, I have decided to adjudicate the issue on merit. Although, no addition was made in the returned income, yet, it is quite incomprehensible to understand as to how the total income of ` 12,03,040, has been arrived in computation sheet. The learned CIT(A) has decided the case on the basis of material on record, but it is surprising that he has ignored the glaring anomaly of computation of demand, which is to be done with reference to the assessment order. The learned Departmental Representative in his usual fairness admitted that the demand is flawed. Consequently, the demand of ` 2,62,054, being uncollectable is hereby quashed in limine. Thus, we set aside the impugned order passed by the learned CIT(A) by allowing the grounds raised by the assessee. 4 Shri Sant Gadge Maharaj Sut Girni Ltd. ITA no.21/Nag./2024 8. In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on 08/10/2024 NAGPUR, DATED: 08/10/2024 Sd/- V. DURGA RAO JUDICIAL MEMBER Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "