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Before: Shri Laliet Kumar & Shri Dr. Mitha Lal MeenaShri Naveen Chand
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.
In it is the case of the assessee before us that the assessee had inadvertently included the exempted income amounting to ₹ 3
23600 in total income the return of income.
The assessee has received the tax demand of ₹ 1,57,780 under
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.
The assessing officer had rejected the application filed by the
assessee on the fact that the kind of mistake does not come
within the purview of section 154.
On appeal by the assessee, the learned CIT had also confirmed
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.
Feeling aggrieved by the order passed by the CIT appeal the
assessee is before us on the grounds mentioned hereinabove.
Appeal no 357/ag/2018
The ld. AR had submitted that the mistake committed by the
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.
On the other hand the ld. DR for the revenue had submitted
that the order passed by the lower authorities in accordance
with law and no interference is required.
We have heard the rival contention of the parties and
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
In the result the appeal of the assessee is allowed for
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