2023 (6) TMI 278

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....nd correct in dismissing the appeal treating the assessment order passed u/s 143(3) as valid one when it is illegal and beyond jurisdiction because of change made by the Id. AO. in the disclosed 'status' of the appellant in the return filed. 3. That the Id. C.I.T. (A) is not justified and correct in dismissing the appeal when the jurisdictional notice issued u/s 143(2) and the assessment order passed u/s 143(3) by the 'Joint Commissioner of Income Tax, R-l, Muzaffarnagar' on this basis is, being without empowered u/s 120(4)(b) of the IT Act 1961, illegal and without jurisdiction. 4. That on whole facts and circumstances of the case and materials on record, the Id. C.I.T. (A) is not justified and correct in ....

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....ion made by the Id.AO. deserves to be deleted and such other necessary relief be allowed for which the appellant is found entitled." 2. Facts of the case, in brief, are that for A.Y. 2010-11 the assessee filed its return of income on 16.10.2010, in the status of 'Local Authority', at Nil income. The return was processed u/s 143(1) of the Income-tax Act, 1961 (the "Act") on returned income. Subsequently, the case was selected for scrutiny assessment. During scrutiny assessment proceedings the assessee was asked to explain as to how it is entitled for exemption of the income. The reply submitted by the assessee was not found acceptable by the Assessing Officer and he assessed the income by making addition of Sentage receipts by observing a....

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....ndian Sugar Cane Committee (2) Grant by the State Government (3) Contribution by Sugar Factory, which is 25% of total statutory commission (which is 3% of total purchase) as provided under Rule 49 of UP sugar Cane (Regulation of Supply Purchase Rules) 1954. (4) Any other sum which the state Govt. may required to be credit to it. Further Rule 49 provide that entire amount of commission will be utilized for the construction of road and other development work When the main object of the assessee is road construction all the receipt should be part of assessee's income. The assessee cannot be allowed to take benefit of the expenditure ignoring the receipt of similar type. Thirdly it is' not necessary that ....

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....T(Appeals) vide order dated 1.8.2014 and addition made by the AO amounting to Rs. 13,50,000/- was sustained. Now the assessee is in appeal before this Tribunal. 4. No one attended the proceedings at the time of hearing. However, a request has been made on behalf of the learned counsel for the assessee to decide the appeal on the basis of the written submissions and the material placed on record. 5. The learned DR supported the orders of the authorities below. 6. I have heard the learned DR and perused the material available on record. The assessee has filed various written submissions. The submissions of the assessee are that the assessee is a local authority. The case of the assessee was picked up for scrutiny assessment. The obje....