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2012 (10) TMI 716 - AT - Income TaxWhether a appellant Society is a person u/s 2(31) - appeal not maintainable for not an Order within the meaning of Section 246A(1)? - Held that - In the letter or order dated 31st August, 2011, the CIT(A) has only stated that the appeals filed by the assessee are not maintainable because the letter dated 3rd December, 2010 is not an order within the meaning of Section 246A(1). The assessee filed the appeals against the above order of learned CIT(A) in which the grounds raised by the assessee have already been reproduced this order. From those grounds, it would be evident that the assessee has challenged the finding of the AO and not the order of the CIT(A). The appeal before the ITAT arises against the order of the CIT(A) and not against the order of the AO unless it has been specifically provided under the Income-tax Act. The income of the assessee was determined vide assessment order dated 31st December, 2010 and thereafter, only the demand notice and challan were issued. Therefore the appellate order is the assessment order dated 31st December, 2010 and, in fact, the assessee has filed appeal against such assessment order which is pending before the CIT(A) - the assessee s apprehension, that if it had not filed the appeal against letter dated 3rd November, 2010 it would be presumed that the assessee is liable to Income-tax Act, is misplaced and that in its appeal against the assessment order dated 31st December, 2010, if so advised, the assessee may still deny its liability to be assessed under the Income-tax Act and if so denied, then the appellate authority would decide the same on merits. CIT(A) was justified in holding that the appeals of the assessee against the letter dated 3rd November, 2010 were not maintainable - against assessee.
Issues Involved:
1. Whether the appellant society is a "person" under Section 2(31) of the Income Tax Act, 1961. 2. Whether the appeal against the Assessing Officer's letter dated 3rd November 2010 is maintainable. 3. Whether the CIT(A)'s decision to dismiss the appeal as non-maintainable was justified. Issue-wise Analysis: 1. Whether the appellant society is a "person" under Section 2(31) of the Income Tax Act, 1961: The appellant argued that it is not a "person" as defined under Section 2(31) of the Income Tax Act, 1961, and hence cannot be assessed under the Act. This contention was previously raised in the first round of appeal before the ITAT, which had set aside the matter to the Assessing Officer for fresh adjudication. The Assessing Officer, in the reassessment proceedings, concluded that the appellant society is indeed a "person" within the meaning of Section 2(31) and thus liable to be assessed under the Income-tax Act. The appellant challenged this determination, arguing that the Assessing Officer erred in holding that the society is a taxable entity. 2. Whether the appeal against the Assessing Officer's letter dated 3rd November 2010 is maintainable: The appellant filed an appeal against the Assessing Officer's letter dated 3rd November 2010, which determined the appellant's status as a "person" under the Act. The CIT(A) dismissed the appeal, stating that the letter was not an order within the meaning of Section 246A(1) of the Income Tax Act, and thus, the appeal was not maintainable. The appellant contended that under Section 246(1)(a), an appeal can be filed against any order where the assessee denies liability to be assessed under the Act. The appellant cited various judicial decisions to support the argument that the appeal was rightly filed. 3. Whether the CIT(A)'s decision to dismiss the appeal as non-maintainable was justified: The Tribunal examined the CIT(A)'s order, which stated that the appeals were not maintainable because the letter dated 3rd November 2010 was not an order as per the provisions of Section 246A(1). The Tribunal noted that the appellant's grounds of appeal did not arise from the CIT(A)'s order but rather challenged the findings of the Assessing Officer. The Tribunal emphasized that appeals before the ITAT arise from the CIT(A)'s order and not directly from the Assessing Officer's decisions unless specifically provided under the Income-tax Act. The Tribunal found that the grounds of appeal were not related to the CIT(A)'s order and thus, the appeals were technically not maintainable. Conclusion: The Tribunal concluded that the CIT(A) was justified in holding that the appeals against the letter dated 3rd November 2010 were not maintainable. The Tribunal clarified that the proper appellate order was the assessment order dated 31st December 2010, against which the appellant had already filed an appeal. The Tribunal dismissed the appellant's appeals, affirming the CIT(A)'s decision. Decision: All the appeals of the assessee were dismissed. Decision pronounced in the open Court on 12th October 2012.
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