Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (6) TMI 278 - ITAT DELHIValidity of assessment order passed u/s 143(3) - status of assessee - AO had issued notice as a ‘Local Authority’ and the assessment has been framed in the name of ‘Artificial Juridical person’ - HELD THAT:- The assessee has filed various written submissions. The submissions of the assessee are that the assessee is a local authority. The case of the assessee was picked up for scrutiny assessment. The objections of the assessee are that as per the provisions of U.P. Sugar Cane (Regulation of Supply & Purchase) Act, 1953, the assessee is neither authorized to do any business/profession or any other activity with profit motive, nor it is doing any such activity as contemplated u/s 28 of the I.T. Act. The assessee had filed its return of income as a ‘Local Authority’. Assessment was framed in the status of ‘Artificial Juridical person’. The assessee has placed reliance on the judgment of M/s N.S. Committee [2012 (3) TMI 713 - ITAT DELHI] wherein the Tribunal had cancelled the assessment on the basis that the AO had framed assessment in a different status. It is the case of the assessee that in the present case also the AO had issued notice as a ‘Local Authority’ and the assessment has been framed in the name of ‘Artificial Juridical person’. The AO could not have changed the status from ‘Local Authority’ to ‘Artificial Juridical person’ and therefore the assessment framed by the AO is liable to be cancelled. There is no denying the fact that for the assessment year in question the assessee filed its return of income in the status of ‘Local Authority’ and the Assessing Officer framed the assessment in the status of ‘Artificial Juridical person’. Assessee appeal allowed. From the order of the AO it is clear that it had issued notice u/s 143(2) of the Act to the assessee in the status of ‘Local Authority’ as the notice is addressed to the President/Secretary of the assessee. Therefore, we hereby annul the impugned assessment order being bad in law.
|