The Tax PublishersITA No 242/Ahd/2021
2022 TaxPub(DT) 4385 (Ahd-Trib) : (2022) 197 ITD 0016INCOME TAX ACT, 1961
Section 154
Immediately after the intimation order was passed on 15-9-2016, assessee realized the mistake of not upholding Form No.10 along with Return of Income, however, uploaded the same on 2-11-2017 and filed rectification application on 6-10-2017 requesting to rectify the mistake in the intimation. But, the Dy. CIT(CPC) simply rejected the rectification by his Order, dated 31-10-2019 by holding that there was no prima facie error in the order sought to be rectified, and simply rejected rectification application filed by assessee. CIT(A) even gone one step further by dismissing the appeal without considering Circulars issued by CBDT, as well as Supreme Court's judgment and other High Courts' judgments placed by assessee before CIT(A), NFAC. In view of the overall circumstances of the case, orders passed were quashed and additions were deleted.
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Rectification - Under section 154(2) - -
Assessee was a public charitable trust. For the assessment year 2015-16, it filed its return of income on 1-10-2015 declaring NIL total income. The return was processed under section 143(1) by intimation order dated 15-9-2016 denying claim of deduction of Rs.20 lakhs under section 11(2) and demanding a tax of Rs.2,86,525. As against the intimation order, assessee filed rectification petition under section 154, claiming that assessee failed to file Form No.10 along with return of 1-10-2015. However, Form No.10 was uploaded by online on 2-1-2017 thereby assessee requested AO to grant deduction of Rs.20 lakhs under section 11(2). Assessee further claimed that there was no regular assessment under section 143(3) for the assessment year 2015-16, hence, Form No.10 filed online on 2-1-2017 was to be taken into consideration by AO, while passing the order under section 154 assessee further submitted that filing of Form No.10 along with return of income was mandatory w.e.f. 1-4-2016, i.e., for the assessment year 2016-17 onwards. However, rectification application was rejected by the Dy. CIT(CPC) vide Order dated 31-10-2019. Aggrieved against the rejection of rectification application, assessee filed appeal before the CIT(A), NFAC, however, the same was rejected. Held: Immediately after the intimation order was passed on 15-9-2016, assessee realized the mistake of not upholding Form No.10 along with Return of Income, however, uploaded the same on 2-11-2017 and filed rectification application on 6-10-2017 requesting to rectify the mistake in the intimation. But the Dy. CIT(CPC) simply rejected the rectification by his Order, dated 31-10-2019 by holding that there was no prima facie error in the order sought to be rectified, and simply rejected rectification application filed by assessee. CIT(A) even gone one step further by dismissing the appeal without considering Circulars issued by CBDT, as well as Supreme Court's judgment and other High Courts' judgments placed by assessee before CIT(A), NFAC. In view of the overall circumstances of the case, orders passed were quashed and additions were deleted.
Relied:Union Public Service Commission v. Bibhu Prasad Sarangi and Ors. (2021) 4 SCC 516 and CIT v. Nagpur Hotel Owners Association (2001) 247 ITR 201 (SC) : 2001 TaxPub(DT) 943 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, AHMEDABAD BENCH
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