THE SOUTH INDIAN BANK LIMITED,THRISSUR vs. DCIT, THRISSUR

The present appeal of the assessee is arising from the order of the ld. Commissioner of Income Tax (Appeal) NFAC, Delhi, dated 16.2.2024 having DIN No.ITBA/NFAC/S/250/2023-24/1061020724(1) and relates to assessment year 2020-2021.

Brief facts of the case are that the assessee is a Nationalized Scheduled Bank filed its return of income for the impugned assessment year on 15.2.2021. The return of income filed by the assessee was Page 2 of 5 processed u/s. 143(1) of the Act. While processing the return of income, the CPC has made certain adjustments qua the sums set apart by the assessee as provision in its balance sheet. Similarly, the CPC has made another adjustment by disallowing the amount paid by the assesse towards NPS. Against the disallowances made by the CPC the assessee filed an application u/s 154 of the Act. The same was decided by the CPC and thereafter the assessee filed an appeal before the CIT(A).

Aggrieved with the order of the ld CIT(A), NFAC, the assessee has come up in appeal before us and has raised four grounds of appeal which are dealt with by us hereunder.

Appearing virtually, ld. counsel for the assessee argued that in this case there is no order u/s.143(1) of the Act at all passed by the Ld. AO (CPC) and, therefore, the action of the lower authorities is void abi nitio. On the last date of hearing, the Bench has directed the ld CIT DR to find out as to whether any order u/s.143(1) has been passed by the Ld. AO (CPC) or not. Ld CIT DR pointed out that the CPC has duly passed order on 6.8.2021, which order has duly been served upon the assessee and it is only after the receipt of the order, the assessee has filed anapplication u/s.154 of the Act and requested the Ld. AO to make the rectification. When the Bench has asked ld AR of the assessee as to .

It is also observed that the plea i.e. non- existence of order u/s.143(1) have not been raised before the lower authorities i.e. before the ld CIT(A), NFAC and this plea taken by the assessee for the first time before the Tribunal, in our view, the plea of the assessee is a mixed question of fact or law and cannot be straight away taken for the first time before the ITAT. Therefore, we are not entertaining this plea of the assessee particularly in view of the fact that the facts and figures mentioned and disputed by the assessee u/s 154 before the AO(CPC) and the ld CIT(A) are coming out from the books of account of the assessee.

So far as the other arguments of the assessee are concerned, we deem it fit to restore this matter to the file of the Jurisdictional Assessing Officer for deciding afresh in accordance with law. The JAO shall consider all the arguments of the assessee and also various relevant documents of the assessee and then decide the issues in accordance with law.

In the result, appeal of the assessee is allowed for statistical purposes.