2022 (7) TMI 216 - AT - Income Tax

Applicability of section 115BBE on income to declared in response to notice u/s 139(9) - application seeking admission of additional evidence under Rule 29 of Income Tax (Appellate Tribunal) Rules, 1963 - CIT(A) dismissed assessee's appeal vide ex-parte impugned order - HELD THAT - It is evident from the record that, in the present case, the documents, now furnished before us by way of additional evidence, could not be filed by the assessee before the lower authorities for the reasons as submitted by the learned A.R. and the impugned addition was made in absence of these details. Further, the learned CIT(A) also dismissed assessee's appeal vide ex-parte impugned order. We deem it appropriate to remand this issue to the file of Assessing Officer for de novo adjudication after consideration of all details, as submitted by the assessee. Needless to mention that, no order shall be passed without affording opportunity of hearing to the assessee. As a result, grounds No. 1 to 3 raised in assessee's appeal are allowed for statistical purpose. Short grant of TDS credit - AO is directed to verify the details and grant the same in accordance with law. As a result, ground No. 4 raised in assessee's appeal is allowed for statistical purpose.

Summary

Issues:
1. Delay in filing the appeal.
2. Upward adjustment/addition to income.
3. Application of tax rate under section 115BBE.
4. Short grant of TDS credit.

Issue 1: Delay in filing the appeal
The appellant filed an appeal against an ex-parte order dated 08/09/2021, which was delayed by 29 days. However, due to a Supreme Court order excluding the period from 15/03/2020 till 28/02/2022 for limitation purposes, the delay was considered justified, and the appeal was allowed to proceed on merits.

Issue 2: Upward adjustment/addition to income
The assessee declared income under "income from other sources" in response to a notice under section 139(9) of the Income Tax Act. The Assessing Officer added income under section 115BBE to the total income. The CIT(A) upheld the tax liability on the added income, considering it as undeclared credits entries falling under section 68 of the Act. The appeal against this decision was dismissed.

Issue 3: Application of tax rate under section 115BBE
The CIT(A) confirmed the application of the tax rate prescribed in section 115BBE to the added income. The appellant contended that this application was incorrect, along with challenging the upward adjustment/addition made to the income. The appeal on this issue was dismissed.

Issue 4: Short grant of TDS credit
The appellant claimed a higher TDS credit than what was granted in the intimation under section 143(1). The tribunal directed the Assessing Officer to verify the details and grant the TDS credit in accordance with the law. This ground of appeal was allowed for statistical purposes.

In conclusion, the appeal was allowed for statistical purposes, and the matter was remanded to the Assessing Officer for de novo adjudication on certain issues. The tribunal emphasized affording the appellant an opportunity of hearing before passing any order.