MADHURI JAISWAL,GWALIOR, MADHAYA PRADESH vs. DCIT OR ACIT1(1), GWALIOR, GWALIOR(MADHAYA PRADESH)

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ITA 343/AGR/2024Status: DisposedITAT Agra05 February 2025AY 2017-20183 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the impugned rectification order is not sustainable in law. The Judicial Member and Accountant Member, relying on the decision of the Madras High Court in S.M.IL.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024, found that section 115BBE of the Act applies to relevant transactions on or after 01.04.2017, meaning it is applicable only for assessment year 2018-19 onwards. Therefore, for the assessment year 2017-18, the invocation of section 115BBE in the rectification proceedings was considered incorrect. The Tribunal accepted the assessee's sole substantive grievance in its entirety. Consequently, the appeal filed by the assessee was allowed, and the rectification order was set aside.

What were the facts?

The assessee, Mrs. Madhuri Jaiswal, is in appeal before the Income Tax Appellate Tribunal (ITAT), Agra Bench, for the assessment year 2017-18. The appeal challenges an order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, dated 24.07.2024, which involved proceedings under section 154 of the Income-tax Act, 1961. The dispute pertains to an addition of Rs. 30 lakhs made under section 68 of the Act, which was subsequently subjected to proceedings under section 115BBE. The lower authorities invoked section 154 rectification for this purpose. The assessee was not represented during the hearing, and the matter proceeded ex-parte.

What were the issues?

1. Whether the rectification order passed under section 154 of the Income-tax Act, 1961, is sustainable in law, concerning the addition made under section 68 and the applicability of section 115BBE for the assessment year 2017-18? Assessee's contentions: The assessee's sole substantive grievance, as accepted by the Tribunal, is that the impugned rectification is not sustainable in law. The assessee relies on the decision of the Madras High Court in S.M.IL.L.E. Microfinance Ltd. Vs. ACIT, W.P. (MD) No.2078 of 2020 & 1742 of 2020, dated 19.11.2024. Revenue's contentions: The revenue, through its Senior DR, argued that both lower authorities invoked section 154 rectification for assessing the assessee's section 68 addition of Rs. 30 lakhs made in the assessment framed under section 115BBE of the Act.

Which sections of the Income-tax Act were involved?

Section 154,Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA BENCH, “DB” AGRA

Before: SHRI SATBEER SINGH GODARAAND

Hearing: 05.02.2025Pronounced: 05.02.2025
1.

This assessee’s appeal for assessment year 2017-18 arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1066962456(1) dated 24.07.2024 involving proceedings under section 154 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

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