YASHWANT KUMAR DAGA,KOLKATA vs. ACIT, CIR-30, KOLKATA

आयकर अपील�य अ�धकरण, कोलकाता पीठ ‘ए’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH KOLKATA �ी संजय गग�, �या�यक सद�य एवं �ी मनीष बोरड, लेखा सद�य के सम� Before Shri Sanjay Garg, Judicial Member and Shri Manish Borad, Accountant Member I.T.A No.263/Kol/2022 Assessment year: 2016-17 Yashwant Kumar Daga……………....................................................……Appellant Salarpuria Jajodia & Co., 3rd Floor, 7, Chittaranjan Avenue, Kolkata-700072. [PAN: AFYPD7477F] vs. ACIT, Circle-30, Kolkata…..…....…...................……........……...…..…..Respondent Appearances by: Shri Siddharth Jhajharia & Sujoy Sen, AR, appeared on behalf of the appellant. Shri Subhrajyoti Bhattacharjee, CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : January 04, 2023 Date of pronouncing the order : January 16, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 06.12.2021 of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee, in this appeal, has taken the following grounds of appeal: “1. For that in view of facts and circumstances that Ld. CIT (A) has erred in not quashing / cancelling the order / part of order u/s 154 by AO for which AO even did not issue any notice to appellant and hence such action of CIT(A) is bad in law and it may be held accordingly.

I.T.A No.263/Kol/2022 Assessment year: 2016-17 Yashwant Kumar Daga

I.T.A No.263/Kol/2022 Assessment year: 2016-17 Yashwant Kumar Daga

that too in the rectification proceedings which was carried out only to examine the clerical error of non-giving credit of TDS. The ld. CIT(A) vide impugned order held that the TDS credit has been allowed as per claim of the assessee and observed that the Assessing Officer did not give any reason whatsoever for enhancing income from other sources. He, accordingly, directed to the Assessing Officer to verify the record and adopt correct amount of income from other sources. 5. Being aggrieved by the action of the CIT(A), the assessee has come in appeal before us. 6. We have heard rival contentions and gone through the record. After going through the impugned order of the CIT(A), we categorically asked the assessee as to what prejudice has been caused to the assessee from the above order of the CIT(A) as the ld. CIT(A) has directed the Assessing Officer only to verify the record and adopt correct amount of income from other sources. In response, the ld. Counsel for the assessee has submitted that apart from filing of appeal before the CIT(A), the assessee had also moved a rectification application u/s 154 of the Act to the Assessing Officer but the Assessing Officer has not taken any action. After considering the above submissions of the ld. Counsel for the assessee, the status report was called upon from the Assessing Officer. In response to which, the Assessing Officer furnished a letter dated 03.01.2023, whereby, it has been informed that though enhanced income was withdrawn, however, since the ld. CIT(A) has directed to verify and adopt correct income, therefore, further verifications were done, wherein, certain disallowances were made and the income of the

I.T.A No.263/Kol/2022 Assessment year: 2016-17 Yashwant Kumar Daga

assessee has been assessed at Rs.16089158/-. In nutshell, the Assessing Officer though, withdrew the addition of Rs.3,28,85,890/- which was made in the rectification order u/s 154 of the Act, but made another addition of Rs.92,46,208/- by disallowing interest expenses. 7. In our view, the ld. Assessing Officer has misinterpreted the order of the CIT(A). The ld. CIT(A) has only directed to verify the record and adopt correct amount. However, since the above directions of the CIT(A) was not clear, therefore, the Assessing Officer proceeded to make a fresh assessment which was neither justified nor within the jurisdiction of the Assessing Officer. Firstly, in the rectification petition, the Assessing Officer was supposed to rectify the error apparent on record. The Assessing Officer was not justified at all to enhance the income of the assessee from other sources without assigning any reason and without giving any opportunity to the assessee, that too in a rectification order. The ld. CIT(A) should have given a clear-cut direction of deleting the enhancement of income in the rectification order instead of directing the Assessing Officer to verify the record. The Assessing Officer after verification, though, deleted the enhanced income but again proceeded to make certain other disallowance which action of the Assessing Officer has resulted due to inappropriate directions of the CIT(A). In view of this, the impugned order of the CIT(A) is set aside and thereby the enhancement of income made by the Assessing Officer is also set aside. Any consequential order passed by the Assessing Officer, under the circumstances, of enhancement of income is also hereby set aside. In nutshell, the assessee will be given credit of the TDS as determined by the Assessing Officer in the rectification application u/s 154 of the Act and further enhancement of income, if any, is order to be deleted.

I.T.A No.263/Kol/2022 Assessment year: 2016-17 Yashwant Kumar Daga

Sd/- Sd/- [मनीष बोरड / Manish Borad] [संजय गग� /Sanjay Garg] लेखा सद�य /Accountant Member �या�यक सद�य /Judicial Member Dated: 16.01.2023. RS

Copy of the order forwarded to: 1. Yashwant Kumar Daga 2. ACIT, Circle-30, Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches