Y. SRINIVASA RAJU & COMPANY PRIVATE LIMITED ,BENGALURU vs. INCOME TAX OFFICER, WARD-7(1)(3), BANGALORE

The only grievance of the assessee is that the Ld.CIT(A) has dismissed the appeal of the assessee because there is no order passed under section 154 of the Act attached with the appeal memo in Form-35.

The brief facts show that assessee company is a Private Limited Company engaged in the business of Real Estate Development and leasing of a Commercial Properties. Assessee did not file any return of income; an information was received that assessee has sold an immovable property but did not offer the capital gains. Accordingly, the case of the assessee was reopened by issue of notice under section 148 of the Act on 30.03.2021. The assessee filed return by declaring income of Rs.1,41,52,230/-and in response to that the Ld. Assessing Officer (“the Ld.AO”) issued notice under section 143(2) of the Act. Consequently, the Ld. AO found that the assessee has computed the Long Term Capital Gains at Rs.1,57,79,382/- which was accepted, and

Subsequently, it is stated that assessee has filed an application dated 13.10.2023 under section 154 of the Act stating that there is an error in the computation of interest charged. Against this, order under section 154 of the Act was passed rejecting the same on 28.08.2024.

Assessee preferred an appeal before the Ld.CIT(A) wherein the assessee challenged the order dated 28.08.2024.

The Ld.CIT(A) stated that there is no order passed under section 154 of the Act dated 28.08.2024 attached to Form- 35 and therefore the appeal of the assessee was dismissed as technically defective.

We have heard rival contentions and find that the assessee attached with Form-35 an online service of orders – letter dated 28.08.2024 which is according to us the order passed under section 154 of the Act, rejecting the rectification application of the assessee. This letter was admittedly attached with Form–35. In Form-35 also the assessee has 3 M/s. Y Srinivasa Raju & Company Private Limited given the same date of the order. According to us the same is order passed by the Ld. AO. This order has been construed by the Ld.CIT(A) as merely a letter and not an order. We find this is an error of the Ld.CIT(A). The impugned order under section 154 of the Act was passed on 28.08.2024 for the A.Y. 2015-16 which is attached with Form 35 acknowledged by the Ld.CIT(A) and therefore the appeal of the assessee dismissed for technical reason is not correct.

Hence we direct the Ld.CIT(A) to consider the appeal of the assessee and decide it on the merits of the case. Accordingly, appeal of the assessee is allowed for statistical purposes.