RANJIT KAUR MINHAS,CHANDIGARH vs. PR.CIT-1, CHANDIGARH

This appeal is being filed by the assessee against the order of Ld. Principal Commissioner of Income Tax-Chandigarh-1(hereinafter called as CIT) passed u/s 263 dated 14.03.2021 for A.Y 2015-16: a. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (CIT) erred in initiating proceedings u/s 263 of the Income Tax Act, 1961 (the Act) vide show cause notice dated 20.02.2021 and passing an order u/s 263 of the Act as the reasons assigned by him for doing so are wrong and contrary to the facts of the case, the provisions of the Act, and the Rules made thereunder. b. On the facts and in the circumstances of the case and in law the appellant prays that the order of the learned CIT passed u/s 263 of the Income Tax Act, 1961 may be cancelled being void ab-initio and bad in law.

The Appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of Appeal.

Briefly the facts of the case are that the assessment in this case was completed under section 143(3) dt. 30/11/2017 wherein the return of income filed by the assessee declaring income of Rs. 73,310/- was accepted. Thereafter the assessment record were called for and a show cause under section 263 was issued to the assessee on 20/02/2021. Subsequently after considering the submissions of the assessee, assessment order was held to be erroneous as well as prejudicial to the interest of the Revenue and it was set aside to the file of the AO to pass the same after making necessary inquiry / investigation in light of the discussion made in the impugned order and after giving due opportunity to the assessee.

Against the said findings and the direction of the Ld. PCIT, the assessee is in appeal before us.

During the course of hearing, none appeared on behalf of the assessee, however a communication dt. 05/03/2024 has been received from the assessee wherein it has been stated that pursuant to the impugned order under section 263 of the Act, the NFAC has since passed the order under section 144 r.w.s 263 r.w.s 144B dt. 29/03/2022 wherein the assessed income has been determined at Rs. 173310/- by making the addition of Rs. 1,00,000/- to the income originally assessed under section 143(3) amounting to Rs. 73,310/-. It was however submitted that while computing the tax demand the AO has wrongly computed the tax demand at Rs. 14,44,139/- by wrongly considering the income assessed in the order so passed under section 144 r.w.s 263 r.w.s 144B dt. 29/03/2022. 5.1 It was submitted that the assessee has subsequently filed the letter dt. 28/04/2022 stating that the order passed under section 144 r.w.s 263 r.w.s 144B has certain computational error and the same therefore deserves to be rectified. It was submitted that the said rectification has since not been done

We therefore find that the limited prayer which has been raised by the assessee before us relates to the computational error while passing the set aside order by the NFAC and pursuant to the impugned order under section 263 of the Act. As far as the direction by the Ld. PCIT under section 263 of the Act as well as the consequent order is concerned, the assessee has not raised any objection. In light of the same, we find that there is no infirmity which is called as far as the order passed by the Ld. PCIT under section 263 of the Act, at the same time, the AO is directed to carry out the necessary rectification while computing the tax demand as so pointed out by the assesse after due verification.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 15/03/2024 आकाश दीप जैन िव"म "सह यादव (AAKASH DEEP JAIN) ( VIKRAM SINGH YADAV) उपा"य" / VICE PRESIDENT लेखा सद"य/ ACCOUNTANT MEMBER AG आदेश क" "ितिलिप अ"ेिषत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

""यथ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File