Raythara Sahakari Sangha Ltd. Vs ITO (ITAT Bangalore)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Bangalore addressed the appeals filed by Raythara Sahakari Sangha Ltd. against orders from the National Faceless Assessment Centre (NFAC), Delhi. The appeals pertain to assessments for the assessment years 2018-19 and 2020-21, with orders dated June 10, 2024, and June 3, 2024, respectively.
The assessment for the year 2018-19 was framed under section 143(3) of the Income Tax Act, incorporating provisions from sections 143(3A) and 143(3B). The Assessing Officer (AO) made significant additions to the returned income, initially reported at ₹2,84,330. The major adjustments included a disallowed deduction under section 80P amounting to ₹68,16,732 and unexplained investments totaling ₹93,01,770. Consequently, the total income was reassessed at ₹1,64,02,832.
Upon receiving the assessment order, the assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)). However, the CIT(A) inadvertently referenced facts and findings not present in the assessment order, leading to discrepancies in the appellate review.
During the proceedings, the Authorized Representative (AR) for the assessee argued that the case should be restored to the CIT(A) for a fresh adjudication, taking into account the accurate findings from the assessment order. The AR emphasized that the misrecording by the CIT(A) had impeded a fair assessment of the case.
