SUMITRA DEVI JHURIA,GUWAHATI V. ITO-2(1) GUWAHATI, GUWAHATI

MA 3/GTY/2025

AI Insights

The case revolves around a Miscellaneous Application (MA) filed by Smt. Sumitra Devi Jhuria, challenging the tax rate applied in her assessment for the year 2014-15 under section 115BBE of the Income Tax Act. Initially, the Tribunal's order dated 19.02.2025 did not address the specific tax rate applicable prior to the amendment of section 115BBE, which came into effect on 01.04.2017. The assessee argued that the Tribunal overlooked this crucial aspect, leading to an incorrect application of a higher tax rate. The Tribunal acknowledged this oversight and corrected the order to apply the tax rate as it stood before the amendment, thus partly allowing the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 787503 (ITAT-GUWAHATI)
• Duration Of Justice: 6 month(s) 23 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 25-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Question of law; Principle of natural justice; Rectification of order
• Section: 69C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH, GUWAHATI (VIRTUAL HEARING AT KOLKATA) SHRI MANOMOHAN DAS, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER MA No. 3/GTY/2025 (Arising out of ITA No. 175/Gty/2024) Assessment Year: 2014-15 Smt. Sumitra Devi Jhuria, C/o Jhuria Readymade Centre, Shiw Market, Fancy Bazar, Guwahati - 781001 [PAN: ABQPJ0837K] .....................…...……………....Appellant vs. Income Tax Officer, Ward-2(1)/The ACIT Circle-2, Guwahati ........................................ Respondent Appearances by: Assessee represented by : Written submissions Department represented by : Kausik Ray, JCIT Date of concluding the hearing : 22.08.2025 Date of pronouncing the order : 17.11.2025 ORDER PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. The present Miscellaneous Application has been filed by the assessee for rectification of order, dated 19.02.2025, passed by the Tribunal in ITA No. 175/Gty/2024, pertaining to the Assessment Year 2014-15. The grounds of MA are as under: “8) The Applicant had, besides other grounds taken a specific Ground of Appeal as below: - \"For that, without prejudice to the above, in any case, the learned CIT(A)NFAC erred in not taking into account the important aspect regarding the dateline and implementation of the provisions u/s. 115BBE of the Act as in any case the penal tax should have been levied at the rates prescribed u/s.115BBE of Printed from counselvise.com MA No. 03/GTY/2025 Smt. Suchitra Devi Jhuria 2 the Act as it stood prior to its amendment made by Taxation Laws (Second Amendment) Act, 2016 w.e.f..01.04.2017\" 9) The Applicant begs to submit that the Hon'ble Tribunal erred in not giving its due adjudication and judgment on this important question of law applicable in this case which was specifically taken and argued by the Applicant in the Appeal Memo as well in the Written Arguments and submissions before the Hon'ble Tribunal and were also referred in its judgment dated 19.02.2025 by the Hon'ble Tribunal. 10) The Applicant begs to state that while writing the impugned order dated 19.02.2025 the aforesaid important legal aspect of amendment of the provisions of section 115BBE of the Act with effect from 01.04.2017 which levied penal tax rate missed the attention of the Hon'ble Tribunal. 11) That owing to non-adjudication of the said legal aspect of the matter, the impugned order of the Hon'ble Tribunal has led to confirmation of the illegal imposition of the penal tax in this case which has caused a great injustice to the Applicant. 12) That in the premises it is submitted and prayed that the Hon, ble Tribunal may kindly be pleased to give its considered adjudication on the aforesaid legal aspect of imposition of rate of tax under the provisions of law applicable in this case. 13) That this application is being submitted in the interest of law and natural justice and equity.” 2. The assessee has moved the MA and filed written submissions which in effect state that the 60% tax rate on additions made u/s 68, 69, 69A, 69B, 69C or 69D of the Act has been brought into force w.e.f. 01.04.2017. Prior to that a lessor amount (30%) was mandated u/s 115BBE of the Act. 3. We find that before us the main challenge was regarding the issue being debatable which has been adequately adjudicated in the appellate order. However, it is seen that the Ground No. 5 had specifically prayed, as an alternative plea that in case section 115BBE of the Act was to be applied then the rate of tax should be as applicable for AY 2014-15. It is seen that this issue was not specifically adjudicated and thus, the following paragraph is inserted as para 3.2 of the ITAT’s order. 3.2 The prayer of the assessee as per Ground No. 5 is valid and the rate of tax u/s 115BBE of the Act as applicable prior to the amendment brought in w.e.f. 01.04.2017, would prevail. The Ld.AO would re-compute the tax liability, if required, as per the position prior to 01.04.2017. Printed from counselvise.com MA No. 03/GTY/2025 Smt. Suchitra Devi Jhuria 3 4. Consequently, para 4 of the ITAT order will now read as “In the result, the appeal of the assessee is hereby partly allowed.” 5. In result, Miscellaneous Application filed by the assessee is allowed. Order pronounced on 17.11.2025 Sd/- Sd/- [Manomohan Das] [Sanjay Awasthi] Judicial Member Accountant Member Dated: 17.11.2025 AK, Sr. PS Copy of the order forwarded to: 1. The Appellant 2. The Respondent 3. CIT(A)- 4. CIT- 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "