Case Law Details

Case Name : Techna Infrastructure Pvt. Limited Vs ACIT (ITAT Kolkata)
Appeal Number : I.T.A. No. 597/KOL/2021
Date of Judgement/Order : 26/09/2022
Related Assessment Year : 2020-2021

Techna Infrastructure Pvt. Limited Vs ACIT (ITAT Kolkata)

ITAT held that in this case Since the ld. Assessing Officer has already decided the issue with regard to the applicability of rate of tax, no further dispute remains pending with the ld. CIT(Appeals). In case, ld. CIT(Appeals) wanted to change the colour of litigation or character of litigation by making an observation for disallowance of reduced rate of taxation on account of excess claim of depreciation, then specific notice for enhancement of assessment of income ought to have been given, which ld. CIT(Appeals) failed to give. In these given circumstances, we allow this appeal and vacate the finding of the ld. CIT(Appeals). It is to be treated that the appeal of the assessee ought to have been rendered as redundant or infructuous instead of making any observation. Thus the appeal of assessee before ld. CIT(Appeals) would be treated as dismissed being infructuous. Any observation made by ld. CIT(Appeals) stands vacated.

FULL TEXT OF THE ORDER OF ITAT KOLKATA

The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi 28.10.2021 passed in Assessment Year 2020-21.

2. The ld. Counsel for the assessee, at the very outset, submitted that the assessee has filed its return of income under section 139(1) of the Income Tax Act. This return was processed by the CPC, Bangalore under section 143(1) on 29.03.2021. The CPC did not approve the reduce rate of taxes applicable upon the assessee under section 115 BAA of the Income Tax Act. Ld. Counsel for the assessee further submitted that against this order dated 29.03.2021 passed under section 143(1) of the Act, the assessee has filed an application under section 154 of the Income Tax Act as well as an appeal before the ld. CIT(Appeals). Ld. 1st Appellate Authority has decided the appeal on 28.10.2021, whereas its application under section 154 was decided on 07.07.2021. Since necessary relief was granted by the CPC vide its order dated 07.07.2021 under section 154 of the Income Tax Act (though neither intimation under section 143(1) for not calculating rate of tax on reduced rate u/s 115BAA contained any reasoning nor processing of 154 application, accepting applicability of reduced rate tax u/s 115BAA contains any reasoning), the ld. 1st Appellate Authority ideally ought to have treated the appeal of the assessee as redundant and infructuous because no cause of action was left for adjudication in the appeal. Ld. Counsel for the assessee pointed out that instead of dismissal of appeal as infructuous, ld. 1st Appellate Authority has commented that since the assessee has claimed depreciation under section 32 of the Income Tax Act at a higher rate, therefore, concessional rate of tax is not applicable under section 115BAA(2)(i) of the Income Tax Act.

3. With the assistance of ld. Representatives, we have gone though the record carefully. Since the ld. Assessing Officer has already decided the issue with regard to the applicability of rate of tax, no further dispute remains pending with the ld. CIT(Appeals). In case, ld. CIT(Appeals) wanted to change the colour of litigation or character of litigation by making an observation for disallowance of reduced rate of taxation on account of excess claim of depreciation, then specific notice for enhancement of assessment of income ought to have been given, which ld. CIT(Appeals) failed to give. In these given circumstances, we allow this appeal and vacate the finding of the ld. CIT(Appeals). It is to be treated that the appeal of the assessee ought to have been rendered as redundant or infructuous instead of making any observation. Thus the appeal of assessee before ld. CIT(Appeals) would be treated as dismissed being infructuous. Any observation made by ld. CIT(Appeals) stands vacated.

4. In the result, the appeal of the assessee is allowed.

Order pronounced in the open Court on September 26, 2022.

Download Judgment/Order

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