DURGA DUTTA SUBUDHI,PURI vs. ITO, WARD PURI

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ITA 552/CTK/2024Status: DisposedITAT Cuttack15 July 2025AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAJESH KUMAR (Accountant Member)1 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 held that there is no provision to shift income heads in an electronically filed return. The intimation issued under section 143(1) by the CPC, which shifted the heads of income from business to house property, is not permissible and liable to be struck down.

What were the facts?

The assessee filed an appeal against the order of the CIT(A) for assessment year 2017-2018. The appeal was filed with a delay of 24 days, which the assessee sought to condone. The assessee, running a hotel business, declared business income in its return, but the intimation u/s.143(1) assessed income under the head 'house property' due to TDS deductions under section 194-I.

What were the issues?

Whether the CPC can re-classify income heads from business to house property in an intimation under section 143(1) based on TDS deductions.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 194-I

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 15/07/2025Pronounced: 15/07/2025

आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 05.09.2024 for assessment year 2017-2018. 2. The appeal of the assessee is barred by 24 days. In this regard, the assessee has filed an application for condonation of delay supported with affidavit stating therein the sufficient reasons which are plausible and not found to be false. Ld. Sr. DR also did not raise any serious objection. Accordingly, delay of 24 days in filing the present appeal by the assessee is condoned and the appeal is admitted for hearing. 3. It was submitted by the ld AR that the assessee is running a hotel in Puri. The assesee has filed its return of income declaring income from business, however, intimation came to be issued u/s.143(1) of the Act TDS return showed TDS having deducted u/s.194-I of the Act. It was the submission that the heads of income of the assessee have been shifted in the intimation issued u/s.143(1) of the Act, which is not permissible.

4.

In reply Ld. CIT DR submitted that in the return the assessee has shown the TDS has been deducted under the head house property. It was a duty of the assessee to bring out all the facts in the return. It was the submission that the intimation u/s.143(1) of the Act is liable to be upheld.

5.

We have considered the rival submissions. There is no provision in the return of income filed electronically to show that the assessee had income from the TDS in relation to the business income. In any case, in an intimation u/s.143(1) of the Act, the heads of income cannot be shifted. As it is noticed that the CPC has shifted the heads of income in the intimation issued u/s.143(1) of the Act, we are of the view that the said intimation is liable to be struck down and we do so.

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