9911796707
TMI Blog2023 (12) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment Order dated 11/05/2020 passed under section 143 (1) of The Income Tax Act, 1961 (The Act) by The Deputy Commissioner Of Income Tax, Central Processing Centre, Bangalore (The Learned AO), was allowed for statistical purposes. 02. Assessee is aggrieved with that appellate order and has preferred this appeal raising following grounds:- "On the facts and circumstances of the case and in law:- GROUND NO.1: ADDITION IN AN INTIMATION ORDER U/S. 143(1) 1. The learned CIT(A) failed to take into consideration that the AO/CPC does not have any jurisdiction to make an adjustment in an Intimation Order u/s. 143(1), and that the same should have been a matter of scrutiny proceedings. GROUND NO. 2: DIVIDEND INCOME of Rs. 17,65,600/- 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o allow the same. 2. The learned CIT(A) failed to take into consideration that the power given to him under the terms of section 251(1)(a) of the Act, relates to confirming. reducing, enhancing or annulling the assessment and does not have the power to set aside the assessment to the AO and leave it to him for his adjudication. 3. Without prejudice the learned CIT(A) failed to take into consideration that the income arising from the redemption of Mutual Funds is computed in the following manner :- LTCG (without indexation) : Rs. 55,56,214/- LTC Loss (with indexation) : Rs. (9,47,467/-) 4. The learned CIT(A) failed to take into consideration the income/loss arising from the redemption of Mutual Funds has been correctly offered for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the above three sums were taken as profits and gains from business or profession at serial number 2 of income tax computation. Therefore, against the total income shown by the assessee of Rs. 741,029 at serial number nine of income tax computation of intimation under section 143 (1) of the Act, the learned central processing Centre determined such sum at Rs. 8,941,322. Thus, the exemption claimed of Rs. 7,434,693/- under section 10 was denied and treated as profits and gains of business or profession. 06. Assessee preferred an appeal before the learned CIT - A claiming the exemption. The learned CIT - A held that:- i. The mutual fund dividend received by the assessee is tax free in the hands of the investor until 31 March 2020. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved with the appellate order and is in appeal before us. 08. The learned authorized representative and the learned departmental representative made respective arguments. 09. We have heard the rival contentions, perused the intimation passed under section 143 (1) of the act and the order of the learned appellate authority. It is undisputed fact that return of income was filed by the assessee on 15/7/2019 claiming exemption of Rs 7,434,693/- which is also mentioned in schedule EI of the return of income filed by the assessee. The assessee has claimed interest on Tax Free Bonds of Rs. 120,880, dividend income of Rs 1,765,600, and capital gain arising from the merger consolidation of the mutual fund amounting to Rs 5,064,439/- as exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entre at Rs 7,434,693/- is without intimating the assessee about the proposed adjustment. 010. According to the provisions of section 143 (1) (a) of the act where the total income or loss is required to be computed adjustment prescribed in clause number (i) to (vi) can be made only after giving an intimation to the assessee for such adjustment either in writing or in electronic mode. We do not find any such intimation is given to the assessee of such adjustment holding that the claim of exemption made by the assessee is incorrect. Therefore, such adjustment is made in contravention of the provision of section 143 (1) of the Act and hence, it is not sustainable. 011. Even otherwise on the merits of the issue we find that exemptions claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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