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Facts
The assessee's claimed expenses were disallowed by the CPC via intimation under section 143(1) of the Act. The assessee's appeal to the CIT(A) was dismissed without adjudication on the specific grounds regarding disallowance of expenses for trust properties and establishment. Subsequently, an application filed under section 154 with the JCIT(A) for rectification received no action.
Held
The Tribunal held that the JCIT(A) should promptly decide the rectification application and rectify any mistake apparent on record. Accordingly, both appeals were restored to the file of the JCIT(A) for fresh adjudication of the issue after providing the assessee a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) erred by dismissing the appeal without deciding the grounds related to disallowance of expenses and whether the JCIT(A) erred by not acting on the rectification application under section 154 of the Act.
Sections Cited
143(1), 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “K” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HONBLE & SHRI RAHUL CHAUDHARY, HONBLE
PER NARENDRA KUMAR BILLAIYA, AM: I.T.A. Nos. 3103 & 3104/Mum/2024, are two separate appeals preferred by the assessee against two separate orders of ld. CIT(A)/Addl./JCIT(A)-1 Bengaluru, dt. 29/03/2024 pertaining to AY 2021-22 and 2022-23 respectively.
Since the grievance is common in both the appeals and since the underlying facts are identical, both the appeals are disposed of by this common order, for the sake of convenience and brevity.
The common grievance in both the appeals relates to the disallowance made by CPC on expenditure incurred towards the object of the trust. The quantum may differ.
Briefly stated the facts of the case are that vide intimation u/s 143(1) of the Act, the expenses claimed by the assessee were added back while processing the return by CPC against which the assessee preferred appeal before ld. CIT(A) and the appeal was dismissed. However, while dismissing the appeal, the ld. First Appellate Authority did not decide the relevant grounds taken by the assessee as disallowance of the expenses incurred towards properties of the trust and establishment expenditures.
The assessee moved an application u/s 154 of the Act asking the JCIT(A) to rectify the mistake apparent on record but no action was taken by JCIT(A).
After considering the facts, we are of the considered view that, the JCIT(A) should decide the application and rectify the mistake apparent from record as soon as possible. Accordingly, both these appeals are restored back to the file of the JCIT(A), who is directed to take proper action and decide the issue afresh after affording reasonable opportunity of being heard to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 1st August, 2024 at Mumbai. (RAHUL CHAUDHARY) JUDICIAL MEMBER Mumbai, Dated 01/08/2024 (NARENDRA KUMAR BILLAIYA) ACCOUNTANT MEMBER", "summary": {"facts": "The assessee claimed expenses related to the trust's objects, which were added back by the CPC in the intimation under Section 143(1). The assessee appealed to the CIT(A), but the appeal was dismissed without addressing the grounds concerning the disallowance of expenses for trust properties and establishment. Subsequently, an application under Section 154 to rectify the mistake was filed with the JCIT(A) but no action was taken.", "held": "The Tribunal observed that the JCIT(A) should decide the Section 154 application and rectify any apparent mistake. Accordingly, the appeals were restored to the file of the JCIT(A) for proper action and a fresh decision after providing the assessee with a reasonable opportunity of being heard.", "result": "Allowed", "sections": ["143(1)", "154"], "issues": "Whether the CIT(A) erred in dismissing the appeal without deciding the grounds related to the disallowance of expenses for trust properties and establishment, and if the JCIT(A) should rectify the mistake apparent from the record."}} record."}} the record."}} the record."}} record."}} record."}}}