PRA Panels Private Limited Vs ITO (ITAT Raipur)
ITAT Raipur: Assessee Cannot Be Denied Section 115BAB Benefit Due to Department’s Internal Allocation of Appeal Between JCIT(A) and CIT(A)
The Raipur Bench of the ITAT held that an assessee cannot be deprived of appellate adjudication merely because, under the faceless appeal mechanism, the appeal against a section 154 rectification order was allocated to a JCIT(A) instead of a CIT(A)/NFAC. The Tribunal observed that any internal administrative allocation by the Department cannot prejudice the statutory appellate rights of the assessee.
In the present case, the assessee-company had filed its return declaring nil income and claimed the 15% concessional tax rate under section 115BAB after duly filing Form 10-ID. Although there was no dispute that the prescribed form had been correctly furnished, the CPC denied the concessional rate while processing the return under section 143(1)(a). The assessee’s subsequent rectification applications under section 154 were also rejected. When the assessee challenged the second rectification order, the Addl./JCIT(A) declined to entertain the appeal on the ground that an order under section 154 was not appealable before him under section 246.
The Tribunal held that, from the assessee’s perspective, a rectification order is appealable under section 246A, and the assessee cannot be made to suffer because of the Department’s internal allocation of appeals under the faceless scheme. Accordingly, the ITAT set aside the order of the Addl./JCIT(A) and restored the matter for de novo adjudication on merits to examine the assessee’s eligibility for the concessional tax rate under section 115BAB, after complying with the principles of natural justice. The appeal was allowed for statistical purposes. The Tribunal also followed its own earlier decision in the assessee’s case for the preceding assessment year on identical facts
FULL TEXT OF THE ORDER OF ITAT RAIPUR
