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Facts
The Assessing Officer reopened the assessment for AY 2012-13 based on information about cash transactions and non-filing of return. The assessee firm was dissolved prior to the relevant period. The assessee failed to comply with the AO and CIT(A), leading to dismissal of the appeal.
Held
The Tribunal found that the assessee had bonafide reasons for non-compliance before the First Appellate Authority due to the dissolution of the firm. The case was restored to the CIT(A) for fresh decision on merit.
Key Issues
Whether the assessee had reasonable cause for non-compliance with the appellate authority, and if the case should be remanded for fresh adjudication on merits.
Sections Cited
147, 148, 144, 250(6)
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Income Tax Appellate Tribunal, MUMBAI BENCH ‘H(SMC
Before: SHRI AMARJIT SINGH, HON’BLE & SHRI RAHUL CHAUDHARY, HON’BLE
Present for: Assessee by : Smt. Mamta Narendra Kholiya, CA Revenue by : Shri Rajesh Kumar Yadav, Sr. DR Date of Hearing : 13.11.2024 Date of Pronouncement : 07.01.2025 O R D E R PER AMARJIT SINGH, AM:
This appeal of the assessee for the assessment year 2012-13 is directed against the order dated 19.12.2023 passed by the ld. Commissioner of Income-tax (Appeal), Addl/JCIT(A)-12, Delhi.
2 Fact in brief is that the assessing officer received information on the NMS portal of ITD system that the assessee had made cash transactions during the period relevant to A.Y. 2012-13. Therefore, the case was reopened u/s 147 of the Act by issuing of notice u/s 148 of the Act on 22.03.2019. The assessee had not filed return of income for A.Y. 2012-13 and name of the assessee was appearing in the list of non-filers for the F.Y. 2011- 12. As per the information available for the ITS/AIR details for F.Y. 2011-12 the assessee had paid cash for purchase of bank drafts or banker’s cheque aggregating Rs. 1,00,000/- or more to Riddhi Siddhi Enterprises A.Y. 2012-13 the amount of Rs. 4,59,048/-. As per the AIR information, it was also noticed that assessee had deposited cash to the amount of Rs. 1,28,37,000/- during the year under consideration. The assessee failed to make compliance before the AO during the course of assessment proceedings, therefore, assessment was finalized u/s 144 of the Act. After considering the total turnover of the assessee, the assessing officer has computed income @ 8% of turnover of Rs. 28,37,048/- which comes to Rs. 10,26,964/- as income from business and profession.
The assessee filed appeal before the ld. CIT(A). The assessee has not made any compliance, therefore, the ld. CIT(A) has dismissed the appeal filed by the assessee.
Heard both the sides and perused the material on record. Before us, the ld. Counsel submitted that assessee firm was dissolved on 13.04.2010 on account of retirement of one of the partner of the partnership firm with effect from 31.12.2009. Therefore, the remaining partners has discontinued the business in the name of the assessee firm therefore notice of hearing issued by the ld. CIT(A) was not accessible to the assessee. He further submitted that Savings Bank Account in which the transaction of Rs. 1,28,37,048/- was reported infact held by the proprietorship firm under the name Riddhi Siddhi Enterprises and not by the partnership firm. Under the above circumstances, the ld. counsel requested to provide opportunity to the assessee at the level of First Appellate Authority for deciding the case of the assessee on merit after considering the relevant supporting details and submission.
Riddhi Siddhi Enterprises A.Y. 2012-13 5. In the light of above facts and circumstances and perusal of material placed on record, we find there is a bonafide reasons for not making compliance before the First Appellate Authority, therefore, we consider it appropriate to restore the case of the assessee to the file of ld. CIT(A) for deciding afresh on merit in accordance with the provisions of section 250(6) of the Act after providing three more opportunities to the assessee to make submission on the points raised. The assessee is also directed to make due compliance before the ld. CIT(A) without any failure. Accordingly, the appeal of the assessee is allowed for statistical purposes.