PUSHAP RAJ BOHRA,JALORE vs. INCOME TAX OFFICER, W-1, BARMER, BARMER

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ITA 549/JODH/2024Status: DisposedITAT Jodhpur07 August 2026AY 2017-184 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the grievance raised by the assessee was redressed by the subsequent order of the Assessing Officer, the appeal had become infructuous.

What were the facts?

The assessee claimed deductions under Section 54EC and 54F. The CIT(A) directed the AO to examine the eligibility of these deductions. Subsequently, the AO, through a Section 154 rectification order, allowed the deductions claimed by the assessee.

What were the issues?

Whether the direction by the CIT(A) for examination of eligibility of exemption under Section 54EC and 54F amounted to enhancement without opportunity, and if the subsequent allowance of these deductions rendered the appeal infructuous.

Which sections of the Income-tax Act were involved?

Section 54EC,Section 54F,Section 154,Section 251(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Gautam Baid, CA, (Physically)
For Respondent: Ms. Nidhi Nair, Addl. CIT-DR

IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT AND SHRI MAKARAND VASANT MAHADEOKAR, HON’BLE ACCOUNTANT MEMBER ITA No. 549/Jodh/2024 (Assessment Year 2017-18) Pushap Raj Bohra Income Tax Officer, W-1, M-09, Shivaji Nagar, Barmer Jalore, Rajasthan-343001 PAN No. AANPB 4456 C Assessee by Shri Gautam Baid, CA, (Physically) Revenue by Ms. Nidhi Nair, Addl. CIT-DR (Physically) Date of Hearing 03 / 08 / 2026. Date of Pronouncement 07 / 08 / 2026.

ORDER Per: Saktijit Dey, Vice President: This is an appeal by the assessee against order dated 8-2-2024 of National Faceless Appeal Centre (NFAC), Delhi, pertaining to Assessment Year 2017-18.

2.

The effective ground raised by the assessee reads as under:

“On the facts in the circumstances of the case, while disposing the appeal by the Ld. CIT direction to Ld. AO for examination of the eligibility of the assessee regarding exemption u/s 54EC and 54F amount to enhancement of the assessment, is in violation of the provisions of section 251(2) as such direction has been issued without any opportunity of hearing to the assessee. Requisite order may kindly be made to declare direction of Ld. CIT(A) for examination of eligibility of exemption u/s 54EC and 54F unsustainable and exemption claimed by the assessee in the return of income in this regard may kindly be allow.”

2 ITA No. 549/Jodh/2024 (Assessment Year: 2017-18) 3. As could be seen from the grounds raised, the issue arising in the appeal relates to assessee's claim of deduction under Section 54EC and 54F of the Income Tax Act, 1961 (in short ‘the Act’). In course of hearing, learned counsel submitted that while giving effect to directions of learned First Appellate Authority, to examine assessee's claim of deduction under Section 54EC and 54F of the Act, though, the Assessing Officer had initially disallowed the claim. However, subsequently on an application made by the assessee under Section 154 of the Act, the Assessing Officer, vide order dated 16-10-2024, has allowed the claim of deduction under Section 54EC and 54F of the Act. A copy of the said order has been placed on record.

4.

Having considered rival submissions and perused the materials on record, we find that while disposing of assessee’s appeal, learned First Appellate Authority, following the directions of Income Tax Appellate Tribunal (ITAT) in assessee's case in Assessment Year 2015-16 involving identical issue, had directed the Assessing Officer to examine assessee's claim of deduction under Section 54F and 54EC of the Act. In the order dated 16-10-2024 passed under Section 154 of the Act, the Assessing Officer has allowed assessee's claim of deduction under Section 54F and 54EC of the Act, holding as under:

“Now, the assessee has filed this application u/s 154 on 05.10.2024 for rectification of this order giving effect dated 31.05.2024. Along with this application, the assessee has also filed evidences and details of deduction claimed u/s 54EC and 54F, the same has duly been considered by this

3 ITA No. 549/Jodh/2024 (Assessment Year: 2017-18) office in the light of judgment of Hon'ble ITAT in the case of assessee himself for AY 2015-16 (discussed above), hence the rectification application of the assessee is accepted and the deductions claimed of Rs. 2,61,83,266/-in total, is allowed as discussed below. 4. In the light of the above discussion, the order giving effect to the order u/s 250 passed on 31.05.2024 is rectified as under :- The CIT(A) has directed to treat income from sale of 10 immovable properties as income from capitals gain and to examine the eligibility of exemption u/s 54F/54EC of the Act. Accordingly, the income of the assessee is recomputed as under:-

Nature of Income as per order Relief granted by Total Income Income u/s 143(3) CIT(A) (Recomputed by this order) Income from 30,00,000 0 30,00,000 salary Income from HP 1,42,800 0 1,42,800 Income from 3,22,95,567 (-)13,22,95,567 0 PGBP Income from CG 2,80,737 (-)1,90,162(On 90,575 account of loss on sale of Villas now disallowed) Income from OS 774128 0 774128 Less deduction 3,63,33,232 (-) 3,24,85,729 38,47,500 u/c VIA

5.

Since the grievance raised by the assessee in the present appeal stands redressed by virtue of the aforesaid order passed under Section 154 of the Act, the present appeal has become infructuous. Hence, the same is dismissed.

4 ITA No. 549/Jodh/2024 (Assessment Year: 2017-18) 6. In the result, appeal is dismissed. Order Pronounced in the open court on 07/08/2026. Sd/- Sd/- (Makarand Mahadeokar) (Saktijit Dey) Accountant Member Vice President Dated : 07/08/2026. Aks/-

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