SRI VENKATESWARA ENTERPRISES,RAJANAGARAM vs. THE INCOME TAX OFFICER, WARD-2(3), RAJAHMUNDRY

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ITA 170/VIZ/2020Status: DisposedITAT Visakhapatnam26 November 2020AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found a reasonable cause for the assessee's non-appearance before the lower authorities due to COVID-19. Therefore, it granted one more opportunity to the assessee to present its case.

What were the facts?

The assessee, engaged in rice mill trading, filed its return of income. The case was selected for scrutiny, and the Assessing Officer (AO) completed the assessment under Section 144 as the assessee failed to appear and provide information. The Commissioner (Appeals) also confirmed the AO's order due to the assessee's non-appearance.

What were the issues?

Whether the assessee had a reasonable cause for non-appearance before the AO and CIT(A), and if so, whether a fresh opportunity should be granted.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari, Advocate
For Respondent: Shri B.Rama Krishna, Sr.DR
Hearing: 25/11/2020

Date of hearing : 25/11/2020. Date of pronouncement : 26/11/2020. O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER

1.

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-1, Visakhapatnam, dated 16/07/2020 for the Assessment Year 2012-13.

2.

Facts of the case are that assessee is in the business of trading rice mill, filed its return of income declaring total income of Rs. 2,80,340/-. The return filed initially processed u/sec.

(M/s. Sri Venkateswara Enterprises)

143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). Subsequently, the case of the assessee was selected for scrutiny under CASS. The AO after following due procedure, assessment was completed u/sec. 144 dated 30/03/2015. During the course of assessment proceedings, the AO asked the assessee to file the bills, vouchers and other information, however assessee could not appear before the AO. Therefore, the AO passed order u/sec. 144 of the Act. Even before the ld. CIT(A) assessee not appeared, therefore ld. CIT(A) confirmed the order of the AO.

3.

On being aggrieved, assessee is in appeal before this Tribunal.

4.

Counsel for the assessee has submitted that due to Covid-19, assessee could not appear before the AO though he filed an appeal for the same reason but not appeared before the ld.CIT(A) also and the ld. CIT(A) dismissed the appeal of the assessee. Therefore, requested the bench to give one more opportunity to pursue the appeal.

5.

Ld.DR has not raised any objection.

6.

We have considered the arguments of both the parties. We find that there is a reasonable cause to prevent the assessee not to appear before the authorities below. Therefore, it is reasonable to give one more opportunity to the assessee to substantiate its (M/s. Sri Venkateswara Enterprises) case before the AO. Thus, we set aside the order passed by the ld. CIT(A) and remit the matter back to the AO with a direction to adjudicate the matter denovo after considering the material filed by the assessee. Thus, this appeal filed by the assessee is allowed for statistical purpose.

7.

In the result, appeal filed by the assessee is allowed for statistical purpose. Order Pronounced in open Court on this 26th day of Nov., 2020.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated: 26th November, 2020. vr/- Copy to:

1. 1. The Assessee - M/s. Sri Venkateswara Enterprises, D.No. 3-2/13, D.B.V. Raju Villa, Diwancheruvu, Rajanagaram Mandal, East Godavari Dist.

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