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Facts
The assessee claimed exemption U/s. 11, which was disallowed in the intimation U/s. 143(1), leading to a demand. The assessee filed two appeals before the CIT(A), one against the U/s. 154 rectification order and another against the U/s. 143(1) intimation. The CIT(A) dismissed both, but the Tribunal had already set aside the CIT(A)'s order in the appeal against the U/s. 154 order and remitted it for re-adjudication, granting an opportunity of hearing.
Held
The Tribunal found that the core issue in the present appeal, arising from the U/s. 143(1) intimation, was identical to the issue already remitted to the CIT(A) by a previous Tribunal order (ITA No. 313/Viz/2023) for statistical purposes and affording an opportunity of hearing. Consequently, the current appeal was deemed infructuous.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal as infructuous when the core issue had already been remitted by the Tribunal in a related appeal for re-adjudication.
Sections Cited
11, 12A, 143(1), 154
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRIK NARASIMHA CHARY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
सुनवधई की तधरीख/ Date of Hearing : 13/02/2025 घोर्णध की तधरीख/Date of Pronouncement : 07/03/2025 O R D E R PERS. BALAKRISHNAN, Accountant Member :
This appeal filed by the assessee is against the order of the Learned Addl/JCIT (Appeals)-1, Pune (“Ld. CIT(A)”) vide DIN & Order No. ITBA/APL/S/250/2024-25/1070554464(1), dated 22/11/2024 for the AY 2021-22 arising out of the intimation passed U/s. 143(1) of the Income Tax Act, 1961 (“the Act”) dated 26/10/2022. 2 2. Briefly stated the facts of the case are that the assessee filed its return of income for the AY 2021-22 on 10/01/2022 admitting a total income of Rs. NIL and claimed exemption U/s. 11 of the Act. The Ld. AO while processing the return of income U/s.143(1) of the Act computed the total income of the assessee at Rs.1,09,34,810/- and raised a demand of Rs. 43,17,510/-. Thereafter, based on the assessee’s request, the Ld. AO passed an order U/s. 154 of the Act on 02/02/2023 and reduced the amount of adjustment to the tune of Rs. 23,95,154/- and thereby raised a demand of Rs. 5,96,280/-. Thus, the assessee claim of exemption U/s. 11 of the Act to tune of Rs. 23,95,154/- was not allowed by the Ld. AO. The assessee filed two separate appeals before the Ld. CIT(A) against the order U/s. 154 and 143(1) of the Act passed by the CPC dated 02/02/2023 and 26/10/2022 respectively. However, on appeal of the assessee against the Ld. AO’s order U/s. 154 of the Act, the Ld. CIT(A) vide order dated 30/10/2023 rejected the assessee’s claim of exemption and dismissed the appeal. Aggrieved by the Ld.CIT(A)’s order, the assessee filed an appeal before the Tribunal. The Tribunal vide (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A) and thus allowed the 3 appeal of the assessee for statistical purposes. Further, on the assessee’s appeal against the order of the Ld. AO passed U/s.143(1) of the Act, the Ld. CIT(A) vide order dated 22/11/2024 dismissed assessee’s appeal as infructuous since all the grounds raised by the assessee have already been adjudicated by the Ld. CIT(A)-NFAC, Delhi vide order dated 30/10/2023 dismissing the assessee’s appeal. Aggrieved by the order of the Ld. CIT(A), dated 22/11/2024, vide the present appeal, the assessee raised the following grounds of appeal:
“1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case.
The Ld. CIT(A) ought to have held that the addition of Rs. 23,95,154/- made towards disallowance of exemption claimed U/s. 11 of the act is outside the scope of adjustments that can be made in the Intimation U/s. 143(1) of the Act.
Without prejudice to the above, the Ld. CIT(A) ought to have directed the Assessing Officer to allow the exemption of Rs. 23,95,154/- claimed by the appellant U/s. 11 of the Act.
Any other ground that may be urged at the time of hearing.”
3. At the outset, the Ld. AR submitted before us that the present appeal is against the Ld. CIT(A)’s order arising out of the Ld. AO’s order passed U/s. 143(1) of the Act, dated 26/10/2022. However, against the order of the Ld. CIT(A), arising out of the Ld. AO’s order passed U/s. 154 of the Act, dated 02/02/2023, 4 the assessee preferred an appeal before the Tribunal and the Tribunal vide (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A). The Ld. AR further submitted that the consequential order giving effect to the Tribunal’s order dated 21/03/2024 is still pending, the present appeal which arises from the order of the Ld. CIT(A), dated 22/11/2024 may also be remitted back to the Ld. CIT(A).
4. On the other hand, Learned Departmental Representative vehemently opposed to the submissions of the Ld. AR and submitted that since the Tribunal has already adjudicated the assessee’s appeal in (AY 2021-22) on the same issue, the question of adjudication of the present appeal does not arise. The Ld. DR supported the order of the Ld. CIT(A).
We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. It is a fact that the assessee has filed two separate appeals before the Ld. CIT(A), first against the rectification order passed by the Ld.AO U/s. 154 and secondly against the intimation passed by the CPC U/s. 143(1) of the Act dated 02/02/2023 and 26/10/2022 respectively. However, on appeal of 5 the assessee against the Ld. AO’s order U/s. 154 of the Act, the Ld. CIT(A) vide order dated 30/10/2023 rejected the assessee’s claim of exemption and dismissed the appeal. Aggrieved by the Ld.CIT(A)’s order, the assessee filed an appeal before the Tribunal. The Tribunal vide (AY 2021-22), dated 21/03/2024 set-aside the order of the Ld. CIT(A) and remitted the matter back to the file of the Ld. CIT(A) and thus allowed the appeal of the assessee for statistical purposes. The relevant findings of Tribunal are as under: “7. I have heard both the parties and perused the material placed on record. It is an undisputed fact that the assessee is a society, registered u/s 12A of the Act is eligible to claim exemption u/s 11 of the Act. The Ld.AR pleaded before me that the adjustment made in the intimation by denying exemption of accumulated income of Rs.23,95,154/- is not at all warranted and such adjustment is not within the purview of the said section. The Ld.AR filed paper book before me and submitted that the assessee has all material evidences in support of it’s claim. He pleaded for an opportunity of being heard to substantiate it’s claim before the Ld.CIT(A). In view of the foregoing facts and circumstances of the case and keeping in view the principles of natural justice, I am inclined to set aside the order passed by the Ld.CIT(A) and remit the matter back to the file of the Ld.CIT(A) to afford an opportunity of being heard to the assessee before the Ld.CIT(A). The assessee is also directed to adhere to the notices issued by the department and cooperate with the proceedings of the revenue authorities. Accordingly, the grounds raised by the assessee are allowed for statistical purpose.”
From the above, it is clear that the core issue raised by the assessee in the present appeal is identical to that of the issue raised by the assessee in its appeal (AY 2021-22). Further, while adjudicating the assessee’s appeal, the 6 Ld. CIT(A) has categorically mentioned by observing that “since all the grounds raised in this appeal have already been adjudicated by the Ld. CIT(A)-NFAC, Delhi vide order dated 30/10/2023, dismissing the appellant’s appeal. Hence, the present appeal is treated as infructuous since the cause of action for filing the appeal, no more exists”. Therefore, in our considered opinion, the adjudication of the present appeal becomes mere academic exercise and becomes infructuous since the appeal of the assessee on the same issue has already been adjudicated and remitted back to the file of the Ld. CIT(A). Therefore, we hereby dismiss the grounds raised by the assessee as infructuous.
In the result, appeal of the assessee is dismissed.