SHRIRAM BAHU UDDESHIYA SEVABHAVI SANSTHA,SANGLI vs. THE INCOME TAX OFFICER(EXEMPTION), WARD, KOLHAPUR

This appeal by the assessee arises out of the order dated 21-12-2022 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2014-15.

The appeal is time barred by 58 days. The assessee has filed an affidavit explaining the reasons for the delay. I am satisfied with the reasons so stated. The delay is condoned and the appeal is admitted for disposal on merits.

I have heard both the sides and gone through the relevant material on record. It is seen that the assessment order in this case was passed u/s.143(3) of the Act on 07-12-2016 determining Nil income. In the rectification order u/s.154, dt. 30-03-2021, the AO recomputed the income after disallowing depreciation of Rs.33,84,042/-, which was although disallowed earlier in the original order but omitted to be considered at the time of computing the total income. The assessee contested the validity of the rectification order u/s.154 before the ld. CIT(A) but without success.

The ld. AR submitted that the AO gave only 3 days time to the assessee for raising objections against its point of view in the proceedings u/s.154 of the Act, which was highly insufficient. As the rectification proceedings were getting time barred, the AO finalized the same without granting proper opportunity to the assessee.

Considering the entirety of the facts and circumstances prevailing in the instant case, I am of the opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the AO with a direction to pass the rectification order u/s 154 afresh as per law after allowing reasonable opportunity of hearing to the assessee. I order accordingly.

In the result, the appeal is allowed for statistical purposes.