NAVIN CHAND,AGRA vs. ACIT CIRCLE-2(1), AGRA

Per Shri Laliet Kumar, J.M:

The present appeal is being filed by the assessee feeling aggrieved by the order

passed by the Commissioner appeal on 26.2.2018 for the assessment year

2008-2009 on the following ground

Appeal no 357/ag/2018

1) That the learned Commissioner of Income Tax (Appeals)-1 has erred in law and on ground facts in sustaining the order of the learned ACIT by denying the fact that the appellant had never received any intimation under section 143(1) dated 30.03.2011 on the basis of which order under section 154 was passed by the learned ACTT.

2) That the learned Commissioner of Income Tax (Appeals)-I has erred in law and on facts in sustaining the order of the learned ACIT without appreciating the fact that the appellant had first came to know in the month of May, 2015 after the limitation period of revision under section 154 of the Income Tax Act, 1961 about the income tax demand raised through a letter dated 07.11.2013 which had also been never received by the appellant and the same had been send at the old address of the appellant.

3) That the learned Commissioner of Income Tax (Appeals)-I has erred in law and on facts in sustaining the order of the learned ACIT by confirming the addition of Rs. 4,28,368/- disallowing the claim of exempt incomes of Rs. 3,23,600/- and deductions under chapter VI-A of Rs. 1,04,768/- without appreciating the fact of the case and against the principal of natural justice

4) That the learned Commissioner of Income Tax (Appeals)-I has erred in law and on facts in sustaining the impugned assessment order u/s 154 of the learned ACIT without giving proper opportunity of being heard.

23600 in total income the return of income.

section 143 (1) for the assessment year under consideration.

Appeal no 357/ag/2018

As the letter was sent to the old address of the assessee, the

assessee failed to rectify the return of income filed by

including the exempted income in the total income within a

period of time.] 4. Thereafter the assessee filed the revised return of income by excluding the exempted income from the total income and filed

an application under section 154 of the income tax Act.

assessee on the fact that the kind of mistake does not come

within the purview of section 154.

the order passed by the assessing officer on the pretext that

the revised return was filed on 30 March 2011. No decision

was given by the CIT appeal on merit of the case.

assessee is before us on the grounds mentioned hereinabove.

Appeal no 357/ag/2018

assessee whereby he had wrongly included the exempted from

the total income is required to be sooner corrected by the

assessing officer if not done by the assessing officer the same

should have been done by the assessing officer of the

application made by the assessee. It was submitted that the

interest of justice requires that the matter be sent back to the

learned CIT A, for deciding the appeal without being

influenced by the fact that the 154 application was filed on 30

March 2011.

that the order passed by the lower authorities in accordance

with law and no interference is required.

perused the material available on record. As laid down by the

honorable Supreme Court in Catena of judgement that the

purpose of tax administration is to collect just and fair tax

Appeal no 357/ag/2018

from the citizen and should not be an endeavor of the revenue

authority to take benefit of ignorance of the citizen. In the

present case the individual assessee is before us and he had

wrongly included the exempted income in the total income as

a result thereof there is an increasing the taxability of the

assessee which resulted in issuing the tax demand by the

revenue authorities. 11. In our considered opinion the interest of justice, requires

that the matter be sent back to the file of the learned CIT

appeal for a fresh adjudication on merit without being

influenced by the fact that the application under section 154

was filed belatedly on 30 March 2011. The delay in any filing

the rectification application, stand condoned by this tribunal.

In the result the appeal of the assessee is allowed our direction

issued to the Commissioner appeal to decide the grounds on

merit and decide whether the assessee has wrongly included

the exempted income in the total income or not and shall also

decide if the said accept incoming excluded from the total

income then in that eventuality whether the assessee would be

liable to pay any tax demand or not. 5

Appeal no 357/ag/2018

statistical purposes.

Order pronounced in the open court on 15/10/2019.

Sd/- Sd/- (Dr. M.L. Meena) (LalietKumar) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT Sr. PRIVATE SECRETARY ITAT, AGRA