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Facts
The assessee claimed relief of Rs. 6,46,368/- under Section 89(1) in their return of income for AY 2017-18. However, the AO initially assessed the income at Rs. 26,96,460/- and restricted the relief to Rs. 2,50,441/-. Subsequently, the AO rectified the order under Section 154, confirming the restricted relief.
Held
The Tribunal noted that an appeal against the original assessment order under Section 143(3) was still pending before the Ld. CIT(A). To avoid prejudice and ensure justice, the Tribunal restored the present appeal to the file of the Ld. CIT(A).
Key Issues
Whether the Tribunal's order would prejudice the assessee's pending appeal before the CIT(A), and the need for simultaneous disposal of related appeals.
Sections Cited
89(1), 154, 143(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI SANDEEP GOSAIN
This appeal filed by the assessee is arising out of the order of the Learned National Faceless Appeal Centre (NFAC) [hereafter, Ld.CIT(A)], dated 21/03/2025 for the assessment year 2017-18. 2. The assessee has raised the following grounds of appeal:-
1. The Hon'ble Commissioner of Income Tax (Appeals), National Faceless Appeal Centre CIT(A)) erred in confirming the action of AO in restricting the relief claimed u/s 89(1) of the Income Tax Act, 1961 ("Act") at Rs. 2,50,441/- in the rectification order Passed u/s 154 of the Act as against the relief claimed by the Appellant of Rs. 6,46,368/-in the return of income.
2 ITA 2876/Mum/2025 Balkrishna Devraj Dubey 2. The Hon'ble CIT(A) erred in confirming the action of AO in restricting the relief claimed u/s 89(1) of the Act at Rs. 2,50,441/- as against the relief claimed by the Appellant at Rs.6,46,368/- in the return of income.
Your Appellant craves leave to add, to alter, to amend or vary all or any of the aforesaid grounds of appeal.”
At the very outset, I notice that assessment order in the present case was completed under section 143(3) on 26/12/2019, wherein the Assessing Officer assessed the income of the assesse at Rs26,96,460/- and restricted the relief at Rs. 2,50,441/- as against relief of Rs.6,46,368/- claimed by the assessee under section 89(1) of the Act. However, the Assessing Officer allowed the relief of Rs.6,46,368/- under section 89(1) of the Act in the computation sheet annexed to the assessment order passed under section 143(3) of the Act. Thereafter, on realizing the said mistake, the Ld.AO in the notice dated 30/01/2024 issued under section 154 of the Act, proposed to restrict the relief to Rs. 2,50,441/- instead of relief of Rs.6,46,368/- Allowed to the assessee, vide order passed under section 143(3) of the Act and, therefore, rectified the order passed under section 143(3) of the Act by invoking provisions of section 154 of the Act and restricted the claim under section 89(1) of the Act at Rs.2,50,441/-.
It has been brought to my knowledge that the appeal against the order dated 143(3) of the Act is still pending before the Ld.CIT(A). Therefore, in my view, passing of an order in the present appeal would certainly cause prejudice to the rights of the assesse in an appeal pending before the Ld.CIT(A). Be that as it may, without going into the merits of the allegations or counter allegations contained in the present appeal and the dispute, I am of the view that the ends of justice will be met in case both the appeals filed by the assesse regarding same subject matter is