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Facts
The assessee, a Co-operative Housing Society, filed its return for AY 2021-22. The return was deemed defective due to a discrepancy between gross receipts and Form 26AS. An intimation u/s.143(1) determined a higher total income and raised a demand. The assessee's appeal before NFAC was dismissed without proper opportunity.
Held
The Tribunal found that the NFAC had dismissed the appeal without granting proper opportunities to the assessee. Therefore, to provide natural justice, the matter was set aside to the Jurisdictional AO for a fresh order.
Key Issues
Whether the NFAC erred in dismissing the appeal without providing adequate opportunity of hearing to the assessee, and whether the addition made was justified without proper adjudication.
Sections Cited
139(9), 143(1)
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Income Tax Appellate Tribunal, “ SMC” BENCH, AHMEDABAD
Before: SMT. ANNAPURNA GUPTA & SHRI T.R.SENTHIL KUMAR
अपीलाथ" ओर से/ Appellant by : Shri Hardik Vora, Advocate ""थ" की ओर से/Respondent by: Shri Prateek Sharma, Sr.DR सुनवाई की तारीख/ Date of Hearing 05/02/2025 घोषणा की तारीख /Date of 06/02/2025 tctcPronouncement आदेश / O R D E R
PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER:
This appeal is filed by the assessee as against ex-parte appellate order dated 18/07/2024 passed by the Office of the Commissioner of Income Tax, Appeal – Addl/JCIT(A)-1, Gurugram arising out of the intimation made u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) relating to the Assessment Year (AY) 2021-22. Geratpur Bhagyalaxmi Co-operative Housing Society Ltd. vs. ITO Asst.Year – 2021-22 2. Brief facts of the case are that the assessee is a Co-operative Housing Society filed its return of income on 31/12/2021 declaring total income of Rs.1,25,530/- for the AY 2021-22. The return was considered as defective for the reason that the gross receipts as shown in the return of income is less than the income reflected in Form No.26-AS and, therefore, a notice u/s.139(9) of the Act was issued on 01/08/2022 asking the assessee to rectify the return on or before 16/08/2022. In response thereto, the assessee filed a return u/s.139(9) of the Act on 10/08/2022 declaring the same total income. This return also is treated as a defective return, however, intimation u/s.143(1) of the Act dated 28/12/2022 was passed calculating the total income as Rs.10,92,040/- and raised a demand of Rs.1,17,490/-.
Aggrieved against the intimation, assessee filed an appeal before the NFAC.
The appeal was fixed for hearing on 18/02/2024, 09/04/2024 and 11/05/2024, where the assessee sought time to file further details, however, the same was rejected since the assessee has not availed the three opportunities given by NFAC, thereby the appeal was dismissed confirming the tax demand.
Aggrieved against the same, assessee is in appeal before us raising the following grounds of appeal:
1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in passing order without considering adjournment request of assessee. Geratpur Bhagyalaxmi Co-operative Housing Society Ltd. vs. ITO Asst.Year – 2021-22 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming addition of Rs. 9,53,030/-without considering that the income as reflected in Form 26AS is duly reflected in the return of income.
3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming addition of Rs. 9,53,030/-without considering that Assessing Officer has not provided any calculation of impugned addition.
4. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming addition of Rs. 9,53,030/-without considering that no addition can be made on account of difference in returned income and Form 26AS u/s 139(9) or 143(1) without adjudication.
5. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming addition of Rs. 9,53,030/-without considering that net taxable income is lower only due to claim of expenses amounting to Rs.5,60,594/-on account of housing society.
6. It is therefore prayed that the above addition/disallowance made by the assessing officer may please be deleted.
7. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.
The Ld.Counsel for the assessee submitted that the CPC has not given any details for assessing the income at Rs.10,92,040/- and on appeal before the NFAC without granting proper opportunity, confirmed the addition. Therefore, in the interest of natural justice, the case may be set aside to the file of Jurisdictional AO for passing afresh order.
Per contra, the Ld.DR appearing for the Revenue has no objection in setting aside the matter back to the file of JAO and pass fresh intimation. Recording the above submissions of both Geratpur Bhagyalaxmi Co-operative Housing Society Ltd. vs. ITO Asst.Year – 2021-22 the parties and in the interest of Natural Justice, we deem it fit to set aside the matter back to the file of Jurisdictional AO to pass fresh intimation in accordance with law by providing proper opportunity of hearing to the assessee. Needless to say, the assessee should co-operate in the proceedings for passing fresh order.