ITA No.2966/Del/2023

Parties Involved

Facts Summary

The appeal is preferred by the Revenue against the order dated 22.08.2023 of the National Faceless Appeal Centre in Appeal No.NFAC/2019-20/10094415 arising out of the appeal against the order dated 30.09.2021 passed u/s 154 of the Income Tax Act, 1961 by the ADIT, CPC, Bengaluru. The Revenue submitted that the FAA has fallen in error in mentioning that the CPC should have given an opportunity of hearing before passing the impugned order u/s 154 of the Act. The CPC had exercised powers u/s 154 of the Act for making certain additions in the form of disallowance u/s 43B for TDS and GST liabilities; disallowance of belated payments of interest u/s 37; and disallowance of belated remittances of EPF/ESI. However, the Ld. FAA has deleted the same on the basis that the CPC had not complied with the mandate of law requiring the issuance of a notice. The Revenue has specifically placed on record a communication from the Deputy Director of Income-tax, Unit-IV, CPC Bengaluru that while passing the impugned order u/s 154 of the Act, no notice u/s 154(3) of the Act was issued.…

Legal Issues

• 1. Whether the CPC had complied with the mandate of law requiring the issuance of a notice before passing the order u/s 154 of the Act?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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