Case Law Details
Zodiac Energy Limited Vs ADIT CPC (ITAT Ahmedabad)
In the case of Zodiac Energy Limited vs ADIT CPC, the ITAT Ahmedabad addressed disputes arising from the denial of benefits under Section 115BAA of the Income Tax Act, 1961, for Assessment Year 2021-22. The appellant argued that the denial was based on a misinterpretation of eligibility criteria as outlined in the CBDT Circular dated 23.10.2023 and due to the use of an incorrect ITR screenshot in the assessment process.
The Tribunal noted that the assessee’s eligibility for Section 115BAA benefits was clear, and the delay in filing the necessary forms stemmed from technical defects. The ITAT directed the Assessing Officer (AO) to condone the delay and provide the benefits under Section 115BAA.
Regarding the second ground of appeal, the Tribunal acknowledged the error caused by reliance on an incorrect screenshot of the ITR by the AO. The Tribunal directed the AO to rectify the error by considering the correct ITR submitted by the assessee.
On the issue of interest levied under Sections 234A, 234B, and 234C, the Tribunal instructed the AO to recomputed the interest amounts based on the rectifications and applicable provisions.
In conclusion, the ITAT allowed the appeal, emphasizing procedural fairness and the importance of accurate assessments in addressing technical and administrative errors.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), ADDL/JCIT(A)-3, Mumbai (hereinafter referred to as “CIT(A)” for short), dated 20.06.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act” for short], for Assessment Year (AY) 2021-22.
2. The Assessee has taken following grounds of appeal:-
“GROUNDS OF APPEAL
1. The Hon’ble Commissioner of Income-tax (Appeals) [“CIT(A) “] has erred in law as well as on facts of the case in denying the benefits of Section 115BAA of the Income Tax Act, 1961 (“the Act”) to the appellant despite its eligibility in line with the provisions of Section 115BAA of the Act r w. CBDT circular dated 23.10.2023.
2. The Hon’ble CIT(A) while passing the order u/s.250 of the Act has erred in reproducing screenshot of the wrong ITR form in his order and based on that decided that the Appellant has not fulfilled the condition (iii) of CBDT circular dt. 23/1 0/2 023 and solely on this basis, denied the benefit of Section 115BAA of the Act to the appellant.
3. Hon’ble CIT(A) has erred in law as well as on facts of the case by not directing the learned AO to delete the additional interest charged under section 234A, 234B and 234C of the Act amounting to 3,42, 090/-, Rs.1 1,69.1 75/- and respectively. 2,65,882/- respectively.
4. The Appellant reserves the right to add, alter, amend and/or withdraw any of the above Grounds of Appeal.”
3. The appeal before us consists of three grounds.
3.1 With regard to eligibility of the assessee in tune with the provisions of Section 115BAA of the Act read with CBDT Circular dated 23.10.2023, we direct the Assessing Officer to accord the benefit as the delay in filing has arisen due to technical defect which can be condoned.
4. With regard to Ground No.2, it was submitted that the rejection has been emanated from the wrong screenshot of the ITR of the assessee taken by the Assessing Officer and the screenshot of the correct ITR has been provided to us. Hence, we earnestly feel that this is a rectifiable matter by the Assessing Officer. The Assessing Officer shall take up the issue of rectification on going through the correct ITR filed by the assessee.
5. With regard to levy of interest, we direct the Assessing Officer to recompute the interest u/s 234A, 234B and 234C of the Act in accordance with the provisions of the Act and also taking into consideration the above two rectifications while computing the interest amount.
6. In the result, the appeal of the Assessee is allowed.
The order is pronounced in the open Court on 22.11.2024.
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