NAAGA OIL MILL,OMALUR TALUK vs. ITO WARD 2(4), SALEM

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ITA 796/CHNY/2019Status: DisposedITAT Chennai05 February 2020AY 2010-113 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal directed the Assessing Officer to dispose of the assessee's original applications filed under Section 154 on merit, after giving a reasonable opportunity to the assessee. The appeal of the assessee was allowed.

What were the facts?

The assessee filed applications under Section 154 of the Income Tax Act, 1961, against assessment orders. The Assessing Officer dismissed these applications as not maintainable. The CIT(A) struck down the AO's order and allowed the assessee to file a fresh application, but the assessee feared limitation issues.

What were the issues?

Whether the Assessing Officer's dismissal of Section 154 applications was correct and if the original applications should be disposed of on merit despite potential limitation concerns.

Which sections of the Income-tax Act were involved?

Section 154,Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN

Hearing: 05.02.2020

आदेश / O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:: This appeal of the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals)-7, Salem dated 23.01.2019 and pertains to the assessment year 2010-11.

2.

Shri S. Sridhar, the Ld. Counsel for the assessee submitted that originally the assessment order was passed on 25.03.2013. This order was subject to revision u/s. 263 of the Income Tax Act, 1961 (in short

1.

2 -: ‘the Act’) by the CIT by an order dated 31.03.2015. The Assessing Officer (AO) gave effect to the order of the CIT by an order dated 20.08.2015 the assessee filed an application u/s. 154 of the Act on 20.08.2015 against the orders passed by the AO originally on 25.03.2013 and also on 20.08.2015. According to the Ld. Counsel, the assessee has filed two petitions u/s. 154 of the Act. The AO by an order dated 03.03.2016 dismissed the application filed u/s. 154 of the Act on the ground that it is not maintainable as there was no error apparent from the record. The assessee filed an appeal before the Ld. CIT(A) against the order of the AO. The Ld. CIT(A) by the impugned order struck down the order of the AO and allowed the grounds of appeal. The CIT(A) however, gave liberty to the assessee to file a fresh application seeking remedial action. Consequently, the AO was also directed to dispose of the same in accordance with law. The only apprehension of the Ld. counsel for the assessee is that in case fresh application was filed it may be barred by limitation therefore, the original application may be directed to be disposed of.

3.

The Ld. Departmental Representative has no serious objection for disposing both the old applications filed by the assessee on 20.08.2015 on merit. In view of above facts and circumstances of the case, this Tribunal is of the considered opinion that both the applications filed by 3 -: the assessee u/s. 154 of the Act 20.08.2015 one against the order of the AO dated 25.03.2015 another against the order of AO dated 20.08.2015 shall be disposed off. Accordingly, the Assessing Officer is directed to dispose of the same after giving a reasonable opportunity to the assessee on merit. With the above observation, the appeal of the assessee is allowed.

4.

In the result, the appeal filed by the assessee stands allowed.

Order pronounced in the open court on 05th February, 2020 at Chennai (Camp at Coimbatore).

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