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Facts
The assessee filed a return of income on 01.11.2013 which was not validated, and a subsequent validated return on 09.11.2013. The CIT(A) dismissed the assessee's appeal by treating the initial unvalidated return as defective, leading to a dispute regarding a claimed exemption under section 54.
Held
The Tribunal found that the CIT(A) erred in dismissing the appeal based on the defective initial return. It remanded the matter back to the Assessing Officer to properly examine the facts, consider the exemption claimed u/s 54, and verify all supporting material.
Key Issues
Whether the CIT(A) was correct in dismissing the appeal by treating an unvalidated return as defective, and if the exemption claimed under section 54 should be allowed.
Sections Cited
Section 143(1) of Income Tax Act, 1961, Section 54 of Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Dr. B. R. R. Kumar, Sh. Yogesh Kumar US
ORDER Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of National Faceless Appeal Centre (NFAC), Delhi dated 03.11.2023.
The assessee filed return of income on 01.11.2013 which has not been validated. The assessee filed another return on 09.11.2013 which has been duly validated by the Revenue, processed u/s 143(1) of the Income Tax Act, 1961 and the consequent refund has been issued. Thus, we find that the ld. CIT(A) fallen into error in summarily dismissing the appeal of the assessee by treating the return filed on 01.11.2013 as defective.
Shanu Kumar 3. Hence, keeping in view the factual matrix, we are of the considered view that the interest of justice would be well served by remanding the matter to the file of the Assessing Officer with directions to examine facts on record and allow the exemption claimed u/s 54. The assessee shall provide all the supporting material before the Jurisdictional Assessing Officer.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 05/03/2024.