CHANDRA KATARIA,BHOPAL vs. INCOME TAX OFFICER 3(3), BHOPAL
Facts
The assessee filed their return of income for AY 2010-11, which was assessed. The AO re-opened the case under Section 147 and made an addition of Rs. 12,87,000/- as 'notional interest income'. The CIT(A) initially upheld this addition in an ex-parte order. However, a subsequent rectification order by the CIT(A) deleted the addition.
Held
The Tribunal noted that the CIT(A) had already granted full relief to the assessee through a subsequent rectification order, deleting the entire addition of 'notional interest income'. Therefore, the appeal became infructuous.
Key Issues
Whether the addition of notional interest income made by the AO can be sustained when the CIT(A) has subsequently deleted it through a rectification order.
Sections Cited
139, 147, 148, 143(3), 250, 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, AM:
The captioned two appeals have been filed by assessee against the very same order of first-appeal passed by learned Commissioner of Income-tax (Appeals), Addl/JCIT(A)-2, Mumbai [“CIT(A)”] u/s 250 of the Income-tax Act, 1961 [“the Act”], which in turn arise out of assessment-order dated 26.12.2017 passed by ITO-3(3), Bhopal [“AO”] u/s 143(3) r.w.s. 147 of the Act for Assessment-Year [“AY”] 2010-11.
The brief facts are such that the assessee-individual filed her return of income of AY 2010-11 u/s 139 on 29.03.2011 declaring a total income of Rs. 2,29,230/- which was assessed. Subsequently, the AO, based on certain
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Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 information regarding deposits in assessee’s bank a/c, re-opened assessee’s
case u/s 147 through notice dated 27.03.2017 u/s 148. Finally, the AO
completed re-opened assessment vide order dated 26.12.2017 after making
an addition of ‘notional interest income’ of Rs. 12,87,000/-. Aggrieved, the
assessee carried matter in first-appeal. The CIT(A) passed order dated
14.06.2024 ex-parte to assessee wherein he upheld the addition made by
AO. Now, the assessee has come in next appeal before ITAT.
ITA No. 655/Ind/2024:
Ld. AR for assessee submitted that the assessee/appellant has due to
oversight filed two appeals against the very same order of CIT(A). Therefore,
one of these two captioned appeals may be dismissed straightaway. Ld. DR for revenue instantly agreed. In view of this, we dismiss the 2nd appeal
being ITA No. 655/Ind/2024.
ITA No. 586/Ind/2024:
In so far this appeal is concerned, Ld. AR submitted that the issue
relates to the addition of Rs. 12,87,000/- made by AO on account of
‘notional interest income’. Ld. AR pointed out that in the impugned order of
first-appeal which is passed ex-parte to assessee, the CIT(A) has upheld the
addition made by AO but subsequently the assessee has filed a rectification
application u/s 154 to CIT(A) and the Ld. CIT(A) has passed a very recent
order dated 24.03.2025 u/s 154 r.w.s. 250 deleting the addition of Rs.
12,87,000/- in entirety and giving full relief to assessee. Ld. AR has filed a
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Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 copy of the order passed by CIT(A). For reference, the first page and last
page of the order passed by CIT(A) are scanned and re-produced below:
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Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011
Therefore, Ld. AR submitted that there is no surviving grievance to
assessee. Ld. AR prayed this bench to close this appeal accordingly. Ld. DR
for revenue instantly agreed.
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Chandra Kataria ITA Nos.586 & 655/Ind/2024 AYs: 2010-2011 6. In view of the fact that the CIT(A) has also granted full relief to
assessee and the assessee does not have any surviving grievance, this
appeal becomes infructuous/meritless and the same is also dismissed. We
only direct the AO to give effect to the latest order dated 24.03.2025 passed
by CIT(A) u/s 154 r.w.s. 250 and accordingly delete the addition made in
assessment-order.
Resultantly, both of these appeals are dismissed.
Order pronounced in open court on 24/07/2025
Sd/- Sd/-
(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER
Indore
िदनांक/ Dated : 24/07/2025
Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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