EMRALD HERBS AND PLANTS PRIVATE LIMITED,CHENNAI vs. DCIT,CPC, BENGALURU

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ITA 594/CHNY/2021Status: DisposedITAT Chennai21 April 2023AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal decided to remit the issue back to the Assessing Officer for de novo examination. Both the assessee's counsel and the DR agreed to this course of action.

What were the facts?

The assessee claimed its entire income as exempt agricultural income. The CPC added this claim to the total income, and the CIT(A) dismissed the assessee's appeal. The assessee argued that exempt income was mistakenly shown as expenditure.

What were the issues?

Whether the income claimed as exempt agricultural income was mistakenly shown as expenditure, requiring verification by the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Before: Shri V. Durga Rao & Shri Manoj Kumar Aggarwal

Hearing: 10.04.2023Pronounced: 21.04.2023

O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), (National Faceless Appeal Centre) [NFAC], Delhi dated 30.11.2021 relevant to the assessment year 2019-20.

2.

Facts are, in brief, that the assessee company is in the business of plantation of herbal and medical horticultural products and filed its return of income for the assessment year 2019-20 showing total income of ₹.

NIL on 13.10.2019 by claiming the entire income as exempt for the reason that the income is an agricultural income. The return filed by the assessee was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short] and the entire claim of the assessee was added to the total income of the assessee. The assessee filed an application under section 154 of the Act on 16.02.2021. The said application under section 154 of the Act was disposed off by the Assessing Officer vide order dated 03.03.2021 and the total income was computed at ₹.9,76,579/- as against NIL income as per returned filed by the assessee. On appeal against the order under section 154 of the Act, after considering the submissions of the assessee, the ld. CIT(A) dismissed the ground raised by the assessee.

3.

When the appeal was taken up for hearing, the ld. Counsel for the assessee has submitted that the assessee filed its return of income and in its computation, in the Schedule BP Col. No. 1 profit before tax as per profit and loss account, it has shown ₹.9,76,549/- and also in Col. No. 5(c) same figure was shown as agricultural income exempt. However, in Schedule EI – details of exempt income, in Sl.No. 3(ii), the assessee has inadvertently shown expenditure incurred on agriculture at ₹.9,76,549/- and submitted that this was mistakenly shown as expenditure and it is actually exempt income, thereby, the CPC, Bengaluru added it as income. Therefore, the ld. Counsel for the assessee prayed that the issued may be remitted back to the Assessing Officer for verification.

4.

On the other hand, the ld. DR has fairly conceded that the issue may be remitted back to the regular Assessing Officer. In view of the above, the entire issue is remitted back to the file of the Assessing Officer to examine and decide the issue de novo in accordance with law.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 21st April, 2023 at Chennai.

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