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Facts
The assessee filed a return of income which was processed under Section 143(1) of the Income Tax Act, 1961, by the CPC. The CPC made certain additions, and the assessee appealed to the Commissioner. The Commissioner remanded the issues back to the AO. The Revenue preferred an appeal against this remand order.
Held
The assessee brought to the tribunal's notice a subsequent rectification order under Section 154 of the Act, where the CPC accepted the assessee's original claim, rendering the earlier order obsolete. The tribunal noted that the Revenue's appeal was against the Commissioner's remand order and not the original assessment.
Key Issues
Whether the Revenue's appeal against the Commissioner's remand order is maintainable, especially when a subsequent rectification order has altered the original assessment.
Sections Cited
143(1), 250, 154, 37BA
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Income Tax Appellate Tribunal, NAGPUR BENCH : NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI K.M. ROY
This appeal has been preferred by the assessee against the order dated 16/12/2024 impugned herein passed by the Ld. ADDL/JCIT (A)–3, Hyderabad [in short, “Ld.Commissioner”] u/sec. 250 of the Income Tax Act, 1961 (for short, “the Act”) for the Assessment Year (for short, “AY”) 2023-24.
2 ITA.No.147/NAG/2025 2. Initially, intimation/order dated 12/01/2024 u/sec. 143(1) of the Act was passed by the CPC/Assessing Officer, whereby the return of income filed by the assessee on dated 31/10/2023 for the assessment year under consideration, was processed and certain discrepancies were found and thus various additions were made. Therefore, the assessee being aggrieved, challenged the said intimation/order made by the CPC before the Ld. Commissioner by filing the first appeal. The Ld. Commissioner vide impugned order, remanded the issues concerning the disallowance made by the CPC on account of loss claimed to the tune of ` 1,02,04,85,556/– under decrease in profit or increase in loss on account of ICDS adjustments and deviation in method of valuation of stock and also credit of ` 34,91,133/– by applying Rule 37BA.
The Revenue being aggrieved has preferred this appeal by challenging the decision of the Ld. Commissioner and remanding the issue to the file of the A.O., however, at this stage, the assessee drew our attention to the latest rectification order dated 26/02/2025 u/sec. 154 of the Act, whereby the claim of the assessee in the return of income originally filed, has been accepted by the CPC and no disallowance has been made. Consequently, the order/intimation dated 12/01/2024 u/sec. 143(1) of the Act passed by the CPC, has lost its existence. However, at this stage, we are not in that controversy, as the Revenue Department has challenged the order of the Ld. Commissioner and respective proceedings which are pending before the A.O. and thus there is no merit in the appeal of the Department and therefore the same is liable to be dismissed.
3 ITA.No.147/NAG/2025 4. In the result, appeal of the Revenue Department is dismissed.
Order pronounced in the open Court on 18.06.2025.