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Facts
The assessee's appeal was filed before the Tribunal against an order of the AO dated 26.12.2024. The assessee had previously challenged additions made by the AO before the NFAC/CIT(A), which led to a remand by the Tribunal. The AO then passed a fresh order on 26.12.2024. The assessee mistakenly filed the appeal against this order directly before the Tribunal instead of the First Appellate Authority.
Held
The Tribunal noted that the appeal was erroneously filed before it. The Assessing Officer's order should have been challenged before the Ld.CIT(A) as the First Appellate Authority. Consequently, the assessee's appeal was allowed to be withdrawn with liberty to file it before the Ld.CIT(A).
Key Issues
Whether the appeal filed directly before the Tribunal against the AO's order, bypassing the First Appellate Authority, is maintainable? Whether the assessee can be granted liberty to withdraw and refile the appeal before the correct forum?
Sections Cited
144, 254, 144B, 143(1), 68, 69, 69A
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the Assessing Officer (hereinafter referred to as “the AO”), dated 26.12.2024 passed u/s.144 r.w.s.254 r.w.s.144B of the Income Tax Act, 1961 (hereinafter referred to as "the Act”).
At the outset, it is noted that the assessee had filed Income Tax Returns (ITR) on 25.08.2018 which was processed u/s.143(1) of the Act by the CPC dated 13.12.2018. Later, the ITR was selected for scrutiny and order passed by the NFAC/AO on 19.04.2021 wherein certain additions were made which was challenged before the NFAC/CIT(A) who by order dated 20.03.2023 deleted the addition made u/s.68 of the Act of Rs.14,70,092/- and sustained the addition of Rs.32,69,580/- u/s.69 of the Act, by passing the appellate order, which order was challenged before this Tribunal (ITAT); and the Tribunal by order dated 13.09.2023 was pleased to set aside the order of the Ld.CIT(A) and remit the matter back to the file of the AO for deciding the addition made u/s.69A of the Act to the tune of Rs.32,69,580/-. Pursuant to the Tribunal order, the AO/NFAC has passed the impugned order dated 26.12.2024 which order of the AO, the assessee has challenged directly before this Tribunal. Hence, the Ld.DR objected to the assessee filing appeal against the AO’s order directly before this Tribunal rather than filing statutory appeal against the assessment order dated 26.12.2024 before the First Appellate Authority i.e. Ld.CIT(A) and not before this Tribunal, which is undisputed the Second Appellate Authority. Realizing the mistake, the Ld.AR of the assessee fairly withdrew the captioned appeal which we allow and therefore, the appeal of the assessee is allowed to be withdrawn, with liberty to file the same before the Ld.CIT(A).
Having said so, we note that the right Forum for filing the statutory appeal against the action of the AO would be the Ld.CIT(A)/NFAC. But (AY 2018-19) Osia Impex since the assessee has erroneously filed the appeal before this Tribunal, we expect that the Ld.CIT(A) would condone the delay considering the aforesaid events i.e. time consumed in the assessee filing this appeal and disposal of it. In other words, if the assessee files the appeal before the Ld.CIT(A)/NFAC within ‘30’ days after receiving the order of this Tribunal, then in such an event, the question of limitation may not be raised by the Ld.CIT(A).
4 In the result, appeal filed by the assessee is allowed for statistical purpose.