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Facts
The assessee filed an appeal against an order by the National Faceless Appeal Centre, which arose from an assessment order. The core issue is that the CIT(A) dealt with grounds related to a Section 143(1)(a) intimation order instead of the Section 143(3) assessment order against which the appeal was filed.
Held
The Tribunal held that since the CIT(A) did not adjudicate the grounds of appeal that arose from the Section 143(3) assessment order, the issue should be restored to the file of the CIT(A) for necessary adjudication.
Key Issues
Whether the CIT(A) properly adjudicated the grounds of appeal when it addressed issues arising from a Section 143(1)(a) order instead of the Section 143(3) assessment order.
Sections Cited
14A, 143(3), 143(1)(a), 115JB, 35(1), 250
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to Assessment Year 2018-19 is directed against the order dated 24.12.2024 passed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 (in short ‘the Act’) which inturn is arising out of the Assessment Order dated 08.04.2021 passed u/s.143(3) r.w.s.143(3A) & 143(3B) of the Act.
Assessee has raised following grounds of appeal: “On facts and in law,
1. The Learned CIT(A) erred in not deciding the ground relating to disallowance made u/s 14A of Rs. 14,97,922/- which was raised by the assessee and thereby erred in confirming the said addition.
2. The Learned CIT(A) erred in not appreciating that the disallowance made of Rs. 14,97,922/-u/s 14A was not warranted at all and the same should have been deleted.
The Learned CIT(A) erred in not deciding the ground relating to disallowance of interest of Rs. 1,57,89,806/- which was raised by the assessee and thereby erred in confirming the said addition.
4. The Learned CIT(A) failed to appreciate that the disallowance of interest of Rs. 1,57,89,806/-was not justified at all and the same should have been deleted. 5. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal
3. At the outset, Ld. Counsel for the assessee submitted that the issues raised on merits needs to be restored to the file of ld.CIT(A) for necessary adjudication because in the impugned order ld.CIT(A) has dealt with the grounds of appeal raised against adjustments made in the return processed u/s.143(1)(a) of the Act whereas in the impugned proceedings appeal was filed against the additions made by the AO in the assessment framed u/s.143(3) of the Act on 08.04.2021.
Ld. Departmental Representative was fair enough in not raising any objection to the above contention putforth by the ld. Counsel for the assessee.
We have heard the rival contentions and perused the record placed before us. We notice that the assessee is a Limited Company and it furnished its return of income for A.Y. 2018-19 on 14.10.2018 declaring income of Rs.9,17,46,840/-. Return was processed u/s.143(1)(a) on 22.11.2019 determining income of Rs.9,17,85,800/- under normal provisions and book profit of Rs.27,59,29,965/- u/s.115JB of the Act. The assessee preferred appeal against the adjustments made in the return processed u/s.143(1)(a) of the Act before ld.CIT(A). Subsequently, case of the assessee selected for complete scrutiny through CASS and the reasons for selection were (1) claim of any other amount allowable as deduction in Schedule BP, claim of large value of refund, (3) reduction in profit because of application of income and computation and feasible standards and (4) large deduction claimed u/s.35(1). The assessment proceedings were carried out after validly serving of notices and the submissions filed by the assessee were considered and the income assessed at Rs.10,90,73,258/- which was arrived after making certain more additions to the income assessed under the return processed u/s.143(1)(a) of the Act.
Aggrieved assessee preferred appeal against the additions made in the assessment order u/s.143(3) of the Act before ld.CIT(A) on 24.04.2021. However, while passing the order, ld.CIT(A) has mentioned the grounds of appeal raised by the assessee in the appeal filed before the CIT(A) against the Intimation order passed u/s.143(1)(a) of the Act on 22.11.2019 and in the subsequent pages of the impugned order has dealt with the issues arising out of the adjustments made in the order u/s.143(1)(a) of the Act. Under these facts and circumstances since the ld.CIT(A) has not dealt with the issues raised in the grounds of appeal filed before him in form No.35 which are emanating out of the order u/s.143(3) of the Act dated 08.04.2021, we deem it proper to restore the issue to the file of ld.CIT(A) for necessary adjudication of the grounds raised in Form No.35. Thus, Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 25th day of April, 2025.