IEI SHAREHOLDING (GENERAL ASSISTANCE -1991) TRUST,MUMBAI vs. DEPUTY DIRECTOR OF INCOME TAX, CPC, BENGALURU

Appellant by : Shri Motichand Gupta Respondent by : Shri R. R. Makwana Date of Hearing 29.07.2024 Date of Pronouncement 27.08.2024 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Additional/Joint Commissioner of Income-tax (Appeals)-1, Jaipur /National Faceless Appeal Centre, Delhi [hereinafter referred to as “Addl/JCIT(A)”] dated 14.02.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2022-23.

1. That on the facts and in the circumstances of the case, the Ld Assessing Officer erred in facts as well as in law by treating the appellant as an Association of Person.

2. That on the facts and in the circumstances of the case, the Ld Assessing Officer erred in facts as well as in law by determining the tax liability of the Appellant at Maximum Marginal Rate (MMR).

3. That on the facts and in the circumstances of the case, the Ld Assessing Officer has erred in facts as well in law, in computing the tax liability of the Appellant by applying section 167B of the Act, without appreciating the fact that the appellant is not an Association of Person and merely acting as a representative.

4. That on the facts and in the circumstances of the case, the Ld Assessing Officer has erred in facts as well in law, in not computing the tax liability of the Appellant under section 164(1) of the Act read with proviso (iv), at the slab rates.

5. That on the facts and in the circumstances of the case, the Ld. Addl/JCIT(A) has erred in holding the delay in filing of the appeal by the Appellant as 'inordinate' and without 'sufficient cause', and dismissing the appeal without any discussion on merits.

6. That on the facts and in the circumstances of the case, the Ld. Addl/JCIT(A) has erred in disposing off the appeal without granting the Appellant Trust an opportunity of being heard.”

3. Brief facts of the case are that the assessee is a trust settled by M/s. Ion Exchange (India) Limited with the objective of providing benefit to the employees of the Company in unforeseen difficulties and calamities, including illness, accidents etc. During the year under consideration, the appellant earned dividend income of Rs. 99,080/-. The same was erroneously offered to tax u/s 167B in the status of an Association of Persons (AOP) in the return and was accordingly charged at maximum marginal rate. The return was processed u/s Page 2 of 4 143(1) of the Act by the CPC on 16.03.2023 and a demand of Rs. 4050/- was raised.

4. Subsequently, an appeal before the Ld. CIT(A) was filed after a delay of 255 days on 05.06.2023 which the appeal was transferred to the Addl/JCIT(A)- 1, Jaipur under “e-Appeal scheme-2023”. The same was dismissed without providing sufficient opportunity to the assessee of being heard in particular to explain the reasons of delay.

Page 3 of 4 is also directed to comply and furnish explanation of delay properly before appellate authority. 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 27.08.2024.