TaxTMI 
TaxTMI 
2025 (1) TMI 760
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....angalore (hereinafter referred as the Assessing Officer or in short AO) passed u/s. 143(1) of the Act, for the Assessment Year 2018-19. 2. The assessee's return was processed by CPC u/s. 143(1) of the Act and the tax computed by the assessee of Rs.5,84,14,285/- being 25% of total income of Rs.20,43,88,280/- was enhanced at Rs.6,99,84,583/- at the rate of 30% of total income for which assessee moved a rectification application u/s. 154 of the Act, however, the same was not entertained by the Assessing Officer and even assessee failed before CIT(A) and has accordingly approach this Tribunal raising following grounds:- 1. On the facts and circumstances of the case, the order passed by the Commissioner of Income Tax (Appeals), Income Tax Dep....
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....t Schedule in the Finance Act, 2018. iii) That the learned CIT(A), ITD has erred both on facts and in law in confirming the action of the ADIT, CPC ignoring the Guidance Note on Tax Audit Report under section 44AB of the Act and various judicial pronouncements brought on record by the assessee in this regard. 3. The ld. Counsel for the assessee has submitted that CPC has erred in applying higher rate of tax of 30% despite the fact that the total turnover or the gross receipts in the previous year does not exceed Rs.50 crores. The CIT(A) has observed that the Excise Duty of Rs.8,02,84,477/-, VAT/Sales Tax of Rs.1,25,04,979/- and other income comprising of interest, dividend, rent etc. of Rs.8,11,40,012/- should form part of the turnover....
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.... for appeal. It was also submitted that this issue has not been entered into by the ld. CIT(A) and what is challenged before this Tribunal is the order of ld. CIT(A), wherein, on merits the case of assessee has been discussed and intimation u/s. 143(1) of the Act has been sustained. 7. The ld. CIT-DR has relied order of the ld. Tax Authorities below on merits. 8. Giving thoughtful consideration to the facts before us and the contentions of ld. Counsel, we are of considered view that there appears to have been en error on the part of assessee to go for rectification proceedings instead of filing a regular first appeal before CIT(A) against the initiation processed u/s. 143(1) of the Act. 8.1 In this context we find that in I.T.A No.373/Ag....
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.... Ld. Sr. DR is right to the extent that the assessee cannot be given relief for that reason. However, it is also a settled law that the assessee cannot be taxed on an amount on which tax is not legally imposable. Although, the assessee might have chosen a wrong channel for redressal of his grievance, all the same, it is incumbent upon the Tax authorities to burden the assessee only with correct amount of tax and not to unjustly benefit at the cost of tax payer. Therefore, in the interest of substantial justice, we deem it expedient to restore the issue to the file of the Assessing officer with a direction to pass appropriate orders deleting the addition / disallowance after duly considering the settled judicial position in this regard, w....