TaxTMI 
TaxTMI 
2026 (8) TMI 198
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.... adjudication 2.1. The learned CIT(A) has erred in dismissing the appeal without adjudicating on merits for the reason that the Appellant failed to respond to the hearing notices issued under section 250 of the Act. 2.2. The learned CIT(A) has erred in concluding that owing to non-compliance by the Appellant, there is no reason to interfere with the order of the Assessing Officer. 2.3. The learned CIT(A) has erred in not appreciating that irrespective of the fact whether the Appellant had responded or not, section 250(6) mandates that the order shall be in writing and shall state points for determination, the decision thereon and reason for the decision. It is thus obligatory on the part of the appellate authority to decide the points raised in the appeal. 3. Grounds relating to erroneous computation of tax liability 3.1. The learned Additional / Joint / Deputy / Assistant Commissioner of Income Tax/ Income tax Officer, National e-Assessment Centre, Delhi (hereinafter referred to as 'Assessing authority') has erred in incorrectly computing the tax payable on the assessed income (chargeable at special rates) of Rs. 15,36,05,636 and the en....
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.... of the appeal, so as to enable the Income-tax Appellate Tribunal to decide the appeal according to law. 3. The brief facts of the case are that the assessee being a resident individual filed his original return of income for the AY 2018-19 on 17.8.2018 vide Ack. no.123140391170818 declaring total income of Rs. 1,39,80,66,250/-. Subsequently, a revised return of income was filed on 29.03.2019 vide Ack. No. 447724281290319 declaring total income of Rs. 1,45,29,60,920/-. The tax payable as per revised return was computed as follows: Particulars Income Tax Short-term capital gain taxable @15% 9,96,640 1,49,496 Long-term capital gain taxable @ 20% 8,29,72,125 1,65,44,425 Dividends taxable u/s 1 15BBDA @ 10% 136,89,92,152 13,68,99,215 Tax on special income other than 115BBE 145,29,60,917 15,35,93,136 Add: Surcharge 2,30,38,970 Cess 52,98,963 Interest u/s. 234B 18,49,088 Interest u/s. 234C 3,42,961 3,05,29,982 Total tax and Interest 18,41,23,118 Less: Advance tax, TDS and Self-Assessment tax paid 18,41,23,118 Balance Tax payable/ (Refundable) &nbs....
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....ticulars As per order u/s. 143(3) As per Intimation u/s. 143(1) Difference Interest u/s. 234A 18,37,044 18,37,044 Interest u/s. 234B 25,16,154 18,77,752 6,38,402 Interest u/s. 234C 3,58,182 3,58,182 0 Sub-total (B) 24,75,446 However, the aforesaid difference in tax on special income (other than 115BBE) and corresponding additional surcharge, cess and Interest as compared to intimation and the return of income is neither explained nor expressed in the order u/s. 143(3) of the Act. 4. Aggrieved by the order of AO, passed u/s 143(3) of the Act dated 1.1.2021, the assessee preferred an appeal before the ld. CIT(A)/NFAC. 5. The ld. CIT(A)/NFAC dismissed the appeal of the assessee since the assessee did not respond to any of the notices issued despite providing three numbers of opportunities by the ld. CIT(A)/NFAC. Accordingly, the ld. CIT(A)/NFAC held that due to non-compliance by the assessee, there is no reason to interfere with the order of the AO. 6. Aggrieved by the order of ld. CIT(A)/NFAC dated 17.2.2026, the assessee has filed the present appeal before this Tribunal. The assessee has also f....
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....880/- towards interest u/s 234B & 234C of the Act was raised by the CPC which was subsequently paid by the assessee on 19.6.2019. Surprisingly, on perusal of the assessment order, computation sheet as well as notice of demand u/s 156 of the Act all dated 1.1.2021, we observed that the AO despite having accepted the returned income had raised a demand of Rs. 24,90,252/-. Against the said demand, the assessee went to an appeal before the ld. CIT(A)/NFAC who dismissed the appeal as the assessee did not respond to any of the notices. We are of the considered opinion that computation sheet as well as notice of demand are purely consequential documents and they can only be issued to recover the sums that are explicitly observed in the valid assessment order. The computation sheet is only an intermediary working sheet and in our opinion, it cannot introduce new additions, disallowances or create a new tax liability if the core assessment order contains no such findings or proposes zero variation. It is a trite law that a demand notice and computation sheet raised mechanically or contrary to a nil or positive findings in the main assessment order are unsustainable and liable to be quashed ....