Y. SRINIVASA RAJU & COMPANY PRIVATE LIMITED ,BENGALURU V. INCOME TAX OFFICER, WARD-7(1)(3), BANGALORE

ITA 545/BANG/2025

AI Insights

The case involves M/s. Y Srinivasa Raju & Company Private Limited, which appealed against the dismissal of their earlier appeal by the National Faceless Appeal Centre, Delhi. The original appeal was against a rectification order under section 154 of the Income Tax Act, 1961, concerning the computation of interest charged. The Income Tax Officer had initially reopened the assessee's case due to unreported capital gains from a property sale, leading to an assessment order. The assessee's subsequent rectification application was rejected, and the appeal was dismissed by the Ld.CIT(A) due to the absence of a specific order in the appeal memo, which was later found to be incorrectly interpreted. The Tribunal's decision mandates a re-evaluation of the case on its substantive merits rather than procedural technicalities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712406 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Capital Gains; Rectification of order
• Section: 147; 148; 154

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “B”, BANGALORE Before Shri Prashant Maharishi, Hon’ble Vice President & Shri Soundararajan K., Hon’ble Judicial Member ITA No.545/Bang/2025 (A.Y. 2015-16) M/s. Y Srinivasa Raju & Company Private Limited #79 Srinivasa Complex Seshadripuram Bengaluru – 560020 Karnataka PAN: AACCS0203W vs. The Income Tax Officer Ward – 7(1)(3) Bangalore. (Applicant) (Respondent) Assessee Represented by: Ms. Sunaina Bhatia, CA Department Represented by: Sri. Thamba Mahendra, JCIT Date of Hearing : 22.07.2025 Date of Pronouncement:29.07.2025 O R D E R Per Prashant Maharishi, Vice President: 1. Captioned appeal is filed by M/s. Y Srinivasa Raju & Company Private Limited [ Assessee/ Appellant] for the A.Y. 2015-16 against the Appellate Order passed by National Faceless Appeal Centre, Delhi (“the Ld.CIT(A)”] dated 24.02.2025 wherein the appeal filed by the assessee against the rectification order passed under section 154 of the Income Tax Act, 1961 (“the Act”) dated 28.08.2024 by Printed from counselvise.com 2 ITA No.545/Bang/2025 M/s. Y Srinivasa Raju & Company Private Limited 2 the Income Tax Officer, KAR-W-(131)(3), was dismissed for statistical purposes. The assessee is aggrieved. 2. The only grievance of the assessee is that the Ld.CIT(A) has dismissed the appeal of the assessee because there is no order passed under section 154 of the Act attached with the appeal memo in Form-35. 3. The brief facts show that assessee company is a Private Limited Company engaged in the business of Real Estate Development and leasing of a Commercial Properties. Assessee did not file any return of income; an information was received that assessee has sold an immovable property but did not offer the capital gains. Accordingly, the case of the assessee was reopened by issue of notice under section 148 of the Act on 30.03.2021. The assessee filed return by declaring income of Rs.1,41,52,230/-and in response to that the Ld. Assessing Officer (“the Ld.AO”) issued notice under section 143(2) of the Act. Consequently, the Ld. AO found that the assessee has computed the Long Term Capital Gains at Rs.1,57,79,382/- which was accepted, and Printed from counselvise.com 3 ITA No.545/Bang/2025 M/s. Y Srinivasa Raju & Company Private Limited 3 the assessment order was passed on 29.03.2022 under section 147 rws 144B of the Act. 4. Subsequently, it is stated that assessee has filed an application dated 13.10.2023 under section 154 of the Act stating that there is an error in the computation of interest charged. Against this, order under section 154 of the Act was passed rejecting the same on 28.08.2024. 5. Assessee preferred an appeal before the Ld.CIT(A) wherein the assessee challenged the order dated 28.08.2024. 6. The Ld.CIT(A) stated that there is no order passed under section 154 of the Act dated 28.08.2024 attached to Form- 35 and therefore the appeal of the assessee was dismissed as technically defective. 7. We have heard rival contentions and find that the assessee attached with Form-35 an online service of orders – letter dated 28.08.2024 which is according to us the order passed under section 154 of the Act, rejecting the rectification application of the assessee. This letter was admittedly attached with Form–35. In Form-35 also the assessee has Printed from counselvise.com 4 ITA No.545/Bang/2025 M/s. Y Srinivasa Raju & Company Private Limited 4 given the same date of the order. According to us the same is order passed by the Ld. AO. This order has been construed by the Ld.CIT(A) as merely a letter and not an order. We find this is an error of the Ld.CIT(A). The impugned order under section 154 of the Act was passed on 28.08.2024 for the A.Y. 2015-16 which is attached with Form 35 acknowledged by the Ld.CIT(A) and therefore the appeal of the assessee dismissed for technical reason is not correct. 8. Hence we direct the Ld.CIT(A) to consider the appeal of the assessee and decide it on the merits of the case. Accordingly, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29th July, 2025. Sd/- (SOUNDARARAJAN K) JUDICIAL MEMBER Sd/- (PRASHANT MAHARISHI) VICE PRESIDENT Bangalore; Dated: 29th July, 2025 Giridhar, Sr.PS Printed from counselvise.com 5 ITA No.545/Bang/2025 M/s. Y Srinivasa Raju & Company Private Limited 5 Copy to: 1. The Applicant. 2. The Respondent. 3. The CIT(A) Concerned. 4. The DCIT concerned. 5. The Sr. DR, ITAT, Bangalore. 6. Guard File. Asst.Registrar ITAT, Bangalore Printed from counselvise.com "