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Facts
The assessee filed a return of income for AY 2023-24 and claimed a deduction u/s. 80JJAA. The CPC processed the return u/s. 143(1) and disallowed the deduction citing an incorrect claim. The CIT(Appeals) dismissed the assessee's appeal, observing the Form 10DA was filed after the due date.
Held
The Tribunal noted that during the pendency of the appeal, the CPC passed a rectification order u/s. 154, allowing the deduction u/s. 80JJAA with a minor difference. As the Income Tax Department accepted the claim and there was no demand of income tax or grievance to the assessee, the appeal was rendered infructuous.
Key Issues
Whether the assessee's appeal is infructuous due to a subsequent rectification order allowing the deduction.
Sections Cited
80JJAA, 143(1), 143(1)(a)(ii), 19AB, 154
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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI SOUNDARARAJAN K.
Per Laxmi Prasad Sahu, Accountant Member
This appeal is filed by the assessee against the order dated 04.07.2024 of the CIT(Appeals)-15, Bengaluru, for the AY 2023-24 restricting deduction u/s. 80JJAA of the Act.
Briefly stated the facts of the case are that the assessee filed return of income on 31.10.2023 declaring total income of Rs.24,80,84,950. The CPC processed the return u/s. 143(1) dated 08.01.2024 not allowing deduction u/s. 80JJAA of the Act of Rs.85,36,636 observing incorrect claim u/s. 143(1)(a)(ii).
On appeal, the ld. CIT(Appeals) dismissed the appeal of the assessee vide his order dated 04.07.2024 observing that the assessee had filed the Form 10DA after due date in violation of Rule 19AB of the Income-tax Rules. Aggrieved, the assessee filed appeal before the ITAT on 13.9.2024.
We have considered the rival submissions and gone through the material on record. During the course of hearing, the ld. AR of the assessee submitted that during the pendency of appeal before the ITAT, the CPC has passed rectification order u/s. 154 dated 17.10.2024 (copy filed on record) allowing deduction u/s. 80JJAA of Rs.85,36,635 as shown in Form 10DA, as against the amount of Rs.85,36,636 claimed in the return by the assessee, resultantly a difference of Rs.1/- only. Since the Income Tax Department has accepted the claim of deduction u/s 80JJAA of the assessee in the rectification proceedings u/s 154 of the I T Act and there is no demand of income tax to the assessee for the impugned AY and no grievance to the assessee against the rectification passed u/s 154 of the I T Act.. Accordingly, we dismiss the appeal of the assessee as infructuous.