HARIT DEVELOPERS,PUNE vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-8, PUNE, PUNE

Brief facts of the case are that the assessee is a partnership firm engaged in the business as promoters, builders and developers. It furnished its return of income for A.Y. 2015-16 on 30.09.2015 declaring income of Rs.79,04,150/-. The case was selected for scrutiny through CASS for limited scrutiny followed by validly serving the notices u/s. 143(2) and 142(1) of the Act. The details filed by the assessee were considered and income declared accepted as assessed income. Thereafter, the assessee filed an application u/s. 154 of the Act stating that the assessee had inadvertently added interest income of Rs.40,00,000/- in its return of income on account of software error but actually there is no such income earned by the assessee. However, this application u/s. 154 of the Act was rejected by the Ld. DCIT stating that there is no apparent mistake in the assessment order.

Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) against the order u/s. 154 of the Act but failed to succeed. Now, the assessee has filed an appeal before this Tribunal in . Simultaneously the assessee also preferred an appeal against the order u/s. 143(3) of the Act dated 01.12.2017 before the Ld. CIT(A) on 11.07.2018 again claiming that due to unknown software error interest income of Rs.40,00,000/- was inadvertently declared in the return but there is no such entry in its books. However, the appeal of the assessee was dismissed by the Ld. CIT(A) on account of delay in filing of appeal non-compliance.

We notice that for the very same issue two appeals have been filed. However, the appeal filed against the order u/s. 154 of the Act deserves to be dismissed as there was no apparent mistake in the assessment order framed by the Ld. Assessing Officer. We, therefore, failed to find any infirmity in the findings of Ld. CIT(A). Accordingly, appeal of assessee in is hereby dismissed. is concerned, the assessee has contended that income from interest at Rs.40,00,000/- was not earned by it during the year and due to inadvertent mistake error in the software as well as the mistake at the end of person filing the return, interest income of Rs.40,00,000/- has been wrongly disclosed and offered to tax. We, further notice that the Ld. CIT(A) has not passed a speaking order since the assessee failed to make proper compliance on due date of hearing. We, therefore, deem it proper to provide one more opportunity to the assessee and restore the issue raised in the grounds of appeal on merits to the file of Ld. CIT(A) for necessary adjudication for which reasonable opportunity shall be provided. Further, the assessee can file relevant details including affidavit, bank statement or any other details for pleading that Rs.40,00,000/- of income has not been earned by it and it was a inadvertent mistake. Considering the details the Ld. CIT(A) can decide the appeal in accordance with law after providing fair opportunity of hearing to the assessee. The assessee is directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.