KRISHNAMURTHI VANAJA,COIMBATORE vs. ITO, NCW-1(4), COIMBATORE
Facts
The assessee's appeal for AY 2021-22 arose from an order of the CIT(A) concerning a demand raised by CPC under section 154. The assessee sought to treat agricultural land as non-capital asset and claimed TDS credit, which was initially rejected and then allowed, but later denied by AO's suo motu rectification.
Held
The CIT(A) dismissed the appeal because the assessee failed to provide evidence that the property was agricultural land. The Tribunal noted that the assessee was unrepresented during the first appeal and thus could not substantiate their claim.
Key Issues
Whether the assessee is entitled to TDS credit and if the agricultural land should be treated as a capital asset.
Sections Cited
154, 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI S.S. VISWANETHRA RAVI, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी एस. एस. िव�ने� रिव, �ाियक सद! एवं माननीय �ी मनोज कुमार अ&वाल ,लेखा सद! के सम(। BEFORE HON’BLE SHRI S.S. VISWANETHRA RAVI, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.2572/Chny/2024 (िनधा)रण वष) / Assessment Year: 2021-22) Smt. Krishnamurthi Vanaja ITO बनाम #7, Co-operative Colony, Non-Corporate Ward-1(4), / Vs. Uppilipalayam, Coimbatore-641 015. Coimbatore. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAHPV-1852-E (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri R. Vijayaraghavan (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri R. Raghupathy (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 18-12-2024 घोषणा की तारीख /Date of Pronouncement : 31-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-08-2024 in the matter of an intimation issued by CPC u/s 154 of the Act on 12-09-2023 raising certain demand against the assessee. It emerges that the assessee filed return of income which was processed u/s 143(1). The assessee made rectification application u/s 154 requesting to consider the agricultural land not to be capital asset. The
application was rejected by CPC. During appellate proceedings, the assessee stated that it had sold agricultural land for Rs.136.50 Lacs against which tax was deducted at source. The assessee was not allowed TDS credit in the return of income. Initially, the assessee requested for rectification u/s 154 which was refused on 13-07-2022. The assessee preferred another application which was allowed on 10- 11-2022. However, another suo-motu rectification was made by Ld. AO u/s 154 on 11-01-2023 denying TDS credit. The assessee again preferred rectification which was rejected on 24-05-2023. More requests of rectification were made which were rejected on 26-06-2023 and 12- 09-2023. 2. The Ld. CIT(A) held that the assessee could not furnish any evidence in support of the claim that the property was an agricultural land. Accordingly, the appeal was dismissed. 3. The Ld. AR stated that the only grievance of the assessee was grant of TDS credit. The agricultural income as claimed exempt was accepted by CPC and therefore, this aspect could not have been gone into by Ld. CIT(A). The Ld. Sr. DR, on the other hand, supported the order of Ld. CIT(A). 4. We find that the assessee has remained unrepresented during first appeal and accordingly, it was unable to substantiate her stand. Considering the same, we set aside the impugned order and restore the appeal back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate her case. All the issues are kept open.
The appeal stand allowed for statistical purposes. Order pronounced on 31st December, 2024
Sd/- Sd/- (S. S. VISWANETHRA RAVI) (MANOJ KUMAR AGGARWAL) �ाियक सद! / JUDICIAL MEMBER लेखा सद! / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 31-12-2024 DS आदेशकीSितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF
