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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.
Held
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.
Key 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.
Sections Cited
143(1), 194-I
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
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.
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.
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.
In the result appeal of the assessee is allowed. Order dictated and pronounced in the open court on 15/07/2025. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 15/07/2025 Prakash Kumar Mishra, Sr.P.S.