ASST CIT CIR 6(1), MUMBAI vs. VIMALADEVI MOHATTA, MUMBAI

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ITA 6158/MUM/2013Status: DisposedITAT Mumbai06 November 2015AY 2010-113 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the assessee's subsequent petition under Section 154 was rectified and the issue was resolved, the Revenue's appeal against the CIT(A)'s order had become infructuous.

What were the facts?

The assessee filed a return of income which was processed by the CPC. The assessee filed a petition under Section 154 for rectification of a tax calculation error, which was rejected. The CIT(A) directed the AO to verify the assessee's submissions and grant relief.

What were the issues?

Whether the CIT(A) had the power to remand the case or direct fresh consideration by the AO, and if the Revenue's appeal was rendered infructuous by subsequent rectification.

Which sections of the Income-tax Act were involved?

Section 154,Section 251(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “F”,

Before: SHRI B.R.BASKARAN & SHRI PAWAN SINGH

For Appellant: Shri Mahesh Saboo
For Respondent: Shri Pramod Nikalje (DR), Shri Mahesh Saboo
Hearing: 03.11.2015Pronounced: 06.11.2015

O R D E R

PER PAWAN SINGH, JM:

1.

The present appeal filed by the Revenue against the order dated 05.08.2013 passed by the Commissioner of Income Tax (Appeals)-14, Mumbai (‘CIT(A)’ for short) in respect of assessment years 2010-11 on the following grounds of appeal:

1. Whether on the facts and circumstances of the case and in law, the Ld CIT(A) erred in directing the AO to verify the petition u/s 154 dated 02.08.2011 filed by the assessee 'and. allow the relief accordingly when an order rejecting the petition/s 154 has already been passed, such direction of the CIT(A) amounts to revisiting the order already passed by the AO or at best would amount to setting aside the issue to the Assessing Officer for fresh consideration of the Assessing officer, which power is not vested with the CIT(A) as per the Act.

2. Whether on the facts and circumstances of the case and in law, the impugned order of the Ld CIT(A) is a legally valid order as the CIT(A) has issued a direction in exercise of a power which is not vested with him under the Income Tax Act 1961.

3. The appellant prays that the order of the Ld CIT(A) on the above grounds be set aside to the file of the AO or confirm the order of the AO.

2.

The brief facts of the case are that the assessee filed return of income on 31.07.2010 through Central Processing Centre (CPC) in respect of Assessment Year(AY)-2010-11, declaring total income of Rs. 3,78,17,060/-, which included a LTGS of Rs. 3,61,50,000/-,and STGS of Rs. 1,95,705/-. The return of income was processed by CPC vide its order dated 02.08.2011 assessing the total income at Rs.3,80,26,790/-.

3.

The assessee moved an application u/s 154 of the Act before CPC, pointing out that while calculating the tax at special rate, tax payable was shown at Rs. 72,59,356/- instead of Rs. 36,44,56/-. The CPC rejected the petition dated 17.11.2011 against which an appeal was filed before the CIT(A), the CIT(A) while disposing of the appeal of the assessee and impugned order dated 05.08.2013 held as under: “I have carefully considered the facts of the case, the submissions of the appellant, order u/s. 154 of the CPC. Prima facie the contention of the appellant is found to be in order. The A.O. is directed to verify the aforesaid mentioned submissions of the appellant and give relief accordingly. For statistical purpose, ground is treated to be allowed.” 4. Aggrieved, by the order the Revenue has filed this appeal before us. The ld. DR for Revenue has argued before us that u/s 251(1A) of the Act, the ld. CIT(A) has only power either to confirm, reduce, enhance or annul the assessment and has no power to remand the case and as such the order is illegal. 5. The ld. AR of the assessee has argued before us that the assessee has again moved an application u/s 154 of the Act for rectification of the order and the same has been rectified, vide order dated 05.06.2012 and that the assessee left with no grievance and, thus the appeal of the Revenue has become infructuous. The AR of the assessee has placed on record the copy of rectification order dated 05.06.2012.

6.

The ld. AR of the Revenue did not controvert this factual position. Since the mistake has been rectified in pursuance of another petition of the assessee, the direction given by the CIT(A) has become infructuousand does not require any adjudication.

7.

In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 06/11/ 2015

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