Appeal by Surajkiran Renewable Resources P.Ltd Against Dismissal of Revised Return by Assessing Officer

The tribunal case ITA No. 1432/Del/2022 brings to the forefront a poignant discussion on the processing of revised returns under Section 143(1) of the Income Tax Act, 1961. Surajkiran Renewable Resources P.Ltd, based in New Delhi, filed an appeal against the decision made by the Assessing Officer (AO) under the jurisdiction of ACIT, Central Circle-16, New Delhi, regarding the assessment year 2020-21. This article delves into the complexities of the case, the appellant’s contention, the legal backdrop, and the tribunal’s verdict, providing a comprehensive overview of the judicial process and its implications on tax jurisprudence.

The heart of the dispute lies in the rejection of the revised return submitted by Surajkiran Renewable Resources P.Ltd, which aimed to rectify the original return declaring book profit under section 115JB of the Act. The revised return, leaning on the provisions of Section 115BAA, projected NIL income, a stark change from the previously declared profit. The AO’s decision to dismiss this revision triggered Surajkiran Renewable Resources P.Ltd to approach the Income Tax Appellate Tribunal (ITAT) seeking redressal.

The tribunal’s bench, presided over by Dr. B. R. R. Kumar, Accountant Member, and Sh. Yogesh Kumar US, Judicial Member, scrutinized the appeal meticulously. Their examination was guided by the grounds raised by the appellant, particularly focusing on the treatment of the revised return filed under Section 143(1), the computation of income as per Section 115BAA, and the relevancy of Section 115JB regarding book profit.

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In a significant verdict dated 09.08.2023, the tribunal allowed the appeal of Surajkiran Renewable Resources P.Ltd. The bench found merit in the arguments presented by the appellant, emphasizing that the revised return and the accompanying Form 10-IC should have been considered by the revenue authorities in accordance with Section 115BAA of the Income Tax Act, 1961. This judgment not only reinstated the correct application of tax laws but also underscored the importance of adhering to procedural timelines and the rights of taxpayers to revise their returns.

The case of Surajkiran Renewable Resources P.Ltd vs. ACIT stands as a testament to the dynamic interplay between tax legislation and judicial interpretation. It highlights the tribunal’s role in ensuring that justice is meted out, respecting the principles of equity and fairness. The detailed analysis presented herein aims to shed light on the procedural aspects and the legal reasoning that led to the verdict, providing valuable insights into the evolving tax jurisprudence in India.

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Appeal by Surajkiran Renewable Resources P.Ltd Against Dismissal of Revised Return by Assessing Officer