IN THE INCOME TAX APPELLATE TRIBUNAL, GAUHATI BENCH, GUWAHATI BEFORE DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER AND SHRI MANOMOMOHAN DAS, HON’BLE JUDICIAL MEMBER

ITA No. 70 / GTY / 2023 (Assessment Year : 2016-17)

ORDER

Per Bench :

This appeal by the Revenue is directed against the order of the learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi (hereinafter ‘(CIT(A)’) dated 23.12.2022 passed under section 250 of the Income Tax Act, 1961 [the ‘Act’] and pertains to the Assessment Year [AY] 2016-17.

2. The grounds of the Revenue are as under:

i) That the assessee while filing its income tax return for the Asst. Year 2016-17, the assessee in Annexure of Business & Profession in the column Income / receipt credit to P&L Account of the ITR the assessee had included Rs. 6,76,60,867/- as income from Other sources. But the assessee had not reported this income under the head Income from other sources. Therefore, Centralised Processing Centre, Bengaluru had properly made the addition to the assessee’s income. Thus, CIT(A) erred in deleting the addition made by the CEntralised Processing Centre, Bengaluru.

ii) That the assessee claimed exempted income of RS. 5,09,92,511/- whereas the assessee had not reported the same in the Schedule EI-Details of exempt income. Therefore, Centralised Processing Centre, Bengaluru had rightfully added back the exempted income claimed by the assessee to its total income. Thus, CIT(A) erred in deleting the addition made by Centralised Processing Centre, Bengaluru.

3. There was delay of 118 days on the part of the Revenue in filing of the appeal. The Revenue vide a condonation petition No. F.No.L6 / ITAT / Condonation / DCIT / Cir / Shg / 2023-24 dated 26^th October, 2023 prayed for condonation of delay in filing of the appeal. Delay condoned as there was no objection from the assessee during the hearing of the appeal.

4. The brief facts of the case are that, the assessee had filed its return of income for the AY 2016-17 relevant to the financial year 2015-16 on 30.03.2018 declaring a gross total income of Rs. 12,58,85,347/-. The Central Processing Centre (CPC) had passed an intimation order under section 143(1) of the Act in respect of the said return of income of the assessee. The CPC computed the total income of the assessee at Rs. 24,97,73,725/- against the gross total income of RS. 12,58,85,347/- as shown by the assessee in its return of income. The assessee, against that intimation order of the CPC filed a rectification application on 24.12.2018 with reference to the order No. CPC / 1617 / A5 / 1762527 dated 30.03.2018. The CPC passed a rectification order under section 154 of the Act on 19.01.2019 without making any changes / correction and therefore, gross total income and tax liability of the assessee remained unchanged despite reprocessing under section 154 of the Act. The assessee observed the following mistakes on the part of the CPC as under:

i. E-filed disagreement to the demand raised ii. The CPC had acknowledged the response with the indication that the subject in issue shall be addressed by the jurisdictional Assessing Officer.

iii. Failing to elicit any response from the jurisdictional officer on the letter dated

06.08.2018 of the assessee, the assessee filed a rectification petition on 24.12.2018.

iv. The rectification was carried out without addressing the mistakes apparent from record and the total income along with the Tax remained the same as drawn under section 143(1).

5. Aggrieved, the assessee filed 1^st appeal before the ld. CIT(A). The ld. CIT(A) after considering the case of the assessee vide order dated