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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI SONJOY SARMA
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 26-12- 2021 in the matter of an intimation issued by Centralized Processing Center (CPC), Bengaluru u/s 143(1) of the Act on 12-01-2020. 2. In this appeal, the sole grievance of the assessee is denial of deduction by CPC u/s 80JJAA for Rs.8.90 Lacs as claimed by the 2 - assessee in the return of income. This is the second year of this claim. In the intimation, the claim has been denied since the assessee has not filed prescribed form 10DA to claim this deduction. The Ld. CIT(A) dismissed the ground on the observation that additional employee cost would be nil as there was no increase in the number of employees from previous year. Aggrieved, the assessee is in further appeal before us.
During hearing, it transpires that the return of income was subjected to complete scrutiny and an assessment was framed u/s 143(3) r.w.s. 144B of the Act on 21.04.2021. Pursuant to the same, a computation sheet has been generated on 21.04.2021 wherein deduction under Chapter VIA has been allowed to the assessee for Rs.9.40 Lacs. This deduction includes deduction claimed by assessee u/s 80JJAA. Logically, the intimation issued u/s 143(1) should have merged with the regular assessment framed u/s 143(3) and the demand should have been revised against the assessee. Apparently, the same has not been done which is the grievance of the assessee.
Considering the given factual matrix, we direct Ld. AO to revise the intimation issued u/s 143(1) in the light of scrutiny assessment order dated 21.04.2021 and raise consolidated demand, if required, against the assessee in the system after allowing deduction u/s 80JJAA. The observation of Ld. CIT(A) is misplaced since the assessee is claiming deduction in the second year for additional employee cost incurred during first year i.e., AY 2017-18.
The appeal stand allowed for statistical purposes.
Order pronounced on 25th August, 2022.