Case Law Details
Khadi Grammodhyog Prathisthan Vs Asst. Director of Income CPC (ITAT Jodhpur)
The case of Khadi Grammodhyog Prathisthan Vs Asst. Director of Income CPC (ITAT Jodhpur) revolves around the denial of current year losses by treating a revised tax return as an original return. This appeal arises from an order dated 14.02.2023, issued by the National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2019-20. The initial assessment order was passed under section 143(1) of the Income Tax Act by the Assistant Director of Income Tax (ADIT), CPC.
Original vs. Revised Return: The crux of this appeal lies in the classification of the taxpayer’s return. The assessee filed its original return on 30.10.2019, within the extended due date. Subsequently, on 15.01.2020, the taxpayer filed a revised return. However, the CPC considered the revised return as the original one, leading to the denial of the current year loss amounting to Rs. 3,51,811/-. It is essential to note that the due date for filing the return had been extended by a relevant notification.
Incorrect Classification: Upon a careful review of the records, it becomes evident that the intimation in question failed to acknowledge that the return filed on 15.01.2020 was a revised return, not the original one. Consequently, the denial of the loss is found to be unjustified based on the facts and evidence available. Therefore, the grounds raised by the assessee, i.e., Grounds 1, 2, 3, and 5, are allowed.
Awarding Costs: Under Ground 4, the assessee seeks the tribunal’s intervention in awarding costs, including appeal fees, traveling expenses, and advocate fees. These costs were incurred due to the negligence of the CIT(A) in failing to comprehend the facts correctly.
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