VEER MEHRA TRUST,KOLKATA V. ITO, WARD 1(2), EXEMPT, KOLKATA

ITA 2627/KOL/2024

AI Insights

The case involves Veer Mehra Trust appealing against an order from the Ld. Addl/JCIT(A)-Jodhpur, which was passed under section 250 of the Income Tax Act, 1961 for the assessment year 2023-24. The primary contention was the intimation received under section 143(1) of the Act, which assessed the income of the Trust as an Association of Persons (AOP) without issuing a show cause notice. The Trust argued that the delay in filing the appeal was due to their application under section 154, which was resolved just before filing the appeal. The Revenue supported the original order, emphasizing the need for timely filing of appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312750 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 154

Judgement Text

"आयकर अपीलीय अधिकरण कोलकाता 'ए' पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA श्री जॉजज माथान, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 2627/KOL/2024 Assessment Year: 2023-24 Veer Mehra Trust Vs. ITO, Ward-1(2), Exempt, Kolkata (Appellant) (Respondent) PAN: AAATV8862F Appearances: Assessee represented by : Akkal Dudhwewala, FCA. Department represented by : Ruchika Sharma, Addl. CIT (DR). Date of concluding the hearing : April 29th, 2025 Date of pronouncing the order : April 29th, 2025 ORDER PER BENCH: The captioned appeal by the assessee is against the order of the Ld. Addl/JCIT(A)-Jodhpur [hereinafter referred to as the ‘Ld. CIT(A)’] vide order dated 17.12.2024 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2023-24. Page | 2 I.T.A. No.: 2627/KOL/2024 Assessment Year: 2023-24 Veer Mehra Trust. 2. Shri Akkal Dudhwewala, FCA represented on behalf of the assessee and Smt. Ruchika Sharma, Addl. CIT (DR) appeared on behalf of the Revenue. 3. It was submitted by the Ld. AR that the Trust has only one minor beneficiary. It was submitted that the return filed by the assessee came to be processed and an intimation came to be issued u/s 143(1) of the Act without a show cause notice assessing the income of the assessee as an AOP. It was further submitted that the Ld. CIT(A) dismissed the appeal of the assessee on account of delay of 190 days. It was the submission that the delay was on account of the fact that the assessee had filed an application u/s 154 of the Act and immediately when the 154 order was disposed off, the assessee had filed the appeal against the intimation order. It was further submitted that the delay may be condoned in respect of the delay before the Ld. CIT(A) and the appeal disposed off as the appeal itself is having limited issue. 4. In reply, the Ld. Sr. DR vehemently supported the order of the Ld. CIT(A) and the Ld. AO and submitted that the assessee should have filed the appeal within time. 5. We have considered the rival submissions. The facts in the present case show that the delay in filing the appeal is on account of the assessee attempting at an alternate remedy of the rectification application. This is a reasonable cause. This being so, the delay in filing the appeal before the Ld. CIT(A) stands condoned. A perusal of the facts of the present case clearly shows that no show cause notice had been issued to the assessee before the intimation has been issued u/s 143(1) of the Act. Issuance of a show cause notice is a condition precedent as per the provision of section u/s 143(1) of the Act. On account of the Page | 3 I.T.A. No.: 2627/KOL/2024 Assessment Year: 2023-24 Veer Mehra Trust. failure to issue the show cause notice as also on account of the fact that the status of the assessee has been changed in the intimation and this itself is not permissible, the intimation issued u/s 143(1) of the Act is quashed. 6. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open Court on 29th April, 2025. Sd/- Sd/- [Rakesh Mishra] [George Mathan] Accountant Member Judicial Member Dated: 29.04.2025 Bidhan (P.S.) Page | 4 I.T.A. No.: 2627/KOL/2024 Assessment Year: 2023-24 Veer Mehra Trust. Copy of the order forwarded to: 1. Veer Mehra Trust, P-22, CIT Road, Entally, Kolkata, West Bengal, 700014. 2. ITO, Ward-1(2), Exempt, Kolkata. 3. Addl/JCIT(A)-Jodhpur. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "