Prabodh Mohanlal Shah Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that Form No. 35A signed by the Authorized Representative is only an irregularity which is curable u/s. 292B of the Income Tax Act and not an illegality. Thus, order set aside with a direction to pass order on merits.
Facts- The assessee is a Non Resident Indian residing in United States of America has shown Long Term Capital Gain of Rs.56,95,336/- from sale of residential house property in India and claimed deduction u/s. 54 of the Act. The assessee also offered Income from Other Sources and claimed deduction under Chapter VIA of the Act. The Assessing Officer passed draft assessment order dated 28.09.2021 assessing the capital gain at Rs.1,24,99,095/- adopting the circle rate as on 01.04.2021.
The assessee challenged the draft assessment order before DRP. Ld. DRP rejected the objection filed by the assessee on the ground that the Form 35A was not signed by the assessee but by his Authorized Representative
Conclusion- It is further seen from the DRP’s order that no opportunity was given to the assessee to rectify this mistake, but held that Form No. 35A signed by the Authorized Representative is not valid in law, thereby rejected the objection filed by the assessee. It is seen that the very same Authorized Representative who appeared before the A.O. in the assessment proceedings has signed the objections in the prescribed Form 35A which is a curable defect u/s. 292B of the Act. On perusal of the impugned order, the Ld. DRP has not given any opportunity to rectify the defect. Thus Form No. 35A signed by the Authorized Representative is only an irregularity which is curable u/s. 292B of the Act and not an illegality.
