RAJESH SINGHI,KOLKATA vs. D.C.I.T., CC - 4(1), KOLKATA

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ITA 2356/KOL/2024Status: DisposedITAT Kolkata10 March 2025AY 2014-20154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay of 29 days in filing the appeal, accepting the assessee's explanation related to the festive season and staff unavailability. Regarding the substantive issue, the Tribunal found merit in the assessee's counsel's argument that proper verification of the Income Tax Return (ITR) filing was required by the Assessing Officer (AO). The Tribunal noted that the AO had passed the order based on the finding that the acknowledgement number in the system appeared to be false, indicating no return was filed. The Ld. CIT(A) had also dismissed the appeal due to the assessee's alleged non-cooperation. However, the assessee had presented a copy of the ITR along with its acknowledgement before the ITAT. Therefore, the Tribunal set aside the orders of the AO and the Ld. CIT(A) and restored the appeal to the file of the AO. The AO was directed to pass a fresh order after proper verification of the ITR and after providing the assessee an opportunity of being heard. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Rajesh Singhi, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Kolkata, challenging the order of the Commissioner of Income Tax (Appeals)-27, Kolkata, dated 28.08.2024, for Assessment Year 2014-15. The appeal was filed with a delay of 29 days, which the Tribunal condoned. The case originated from a search and seizure operation under Section 132 of the Income Tax Act, 1961, conducted on premises belonging to the Prithvi Group, including the assessee. The Assessing Officer (AO) found that the acknowledgement number of the return filed by the assessee appeared to be false, leading to the conclusion that no return was filed. Consequently, the AO made additions to the assessee's income. The Ld. CIT(A) dismissed the assessee's appeal, upholding the AO's order on the grounds of non-cooperation by the assessee.

What were the issues?

1. Whether the delay of 29 days in filing the appeal before the ITAT should be condoned, considering the reasons provided by the assessee. (Question of fact) Assessee's contention: The delay was due to the festive season, leading to staff shortages and oversight in filing the appeal within the stipulated time. The assessee requested condonation of the delay. Revenue's contention: No specific contention is recorded in the judgment regarding the delay. 2. Whether the assessment order passed by the AO and confirmed by the Ld. CIT(A) is valid, given the dispute regarding the filing of a valid Income Tax Return (ITR) for AY 2014-15. (Question of mixed law and fact, turning on Section 139 and Section 144 of the Income Tax Act, 1961) Assessee's contention: The assessee submitted that a valid return was filed and produced a copy of the ITR with an acknowledgement before the Tribunal, arguing that the AO and Ld. CIT(A) erred in concluding that no return was filed and that the assessee did not co-operate. Revenue's contention: The Ld. D.R. supported the impugned order.

Which sections of the Income-tax Act were involved?

Section 132,Section 143(2),Section 142(1),Section 139,Section 144,Section 153D,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH: KOLKATA

Before: Shri Pradip Kumar Choubey&Shri Sanjay Awasthi]

ORDER / आदेश Per Pradip Kumar Choubey, JM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-27, Kolkata (hereinafter referred to as the “Ld. CIT(A)”] dated 28.08.2024 for the AY 2014-15. 2. At the outset, there is a delay of 29 days in filing the appeal. The Ld. A.R filed condonation petition which is as under:

Assessment Year: 2014-15 Rajesh Singhi “In the instant case, the order u/s 250 of the I. T. Act, 1961 was passed on 28.08.2024 by the Ld. CIT(A)-27, Kolkata. So, the due date for filing the appeal before the Hon’ble Tribunal was 27.10.2024. But due to following reasons, the appellant individual was unable to file appeal within the stipulated time of two months from the appellate order. i) Due to the festive season, the Durga Puja (10/10/2024 to 13/10/2024), Lakshmi Puja (16/10/2024), Diwali (31/10/2024), Chat puja (07/11/2024) and Jagaddhatri Puja (08/11/2024 to 10/11/2024) etc. many of the staff members of the appellant individual were on leave and irregular and the office was running short of staff members and the general work position of the office was not up to the mark. Due to this reason, the last date of filing appeal was overlooked by the staff members. This is the main reason for delay submission of Appeal. ii) Only after the end of festive season, the non-submission of appeal was detected and the appeal filing process was started. It takes few days to take final decision of filing further appeal before the Hon’ble Tribunal So, in such a situation, humble request is considering the above reasons for delay submission of appeal kindly condone the delay of 29 days and allow the appellant individual to file against the baseless and whimsical confirmation by the Ld. CIT(A) of mindless disallowances made by the AO at the time of passing of assessment order u/s 144/153D of the Income Tax Act, 1961 dated 21.03.2016.” On perusal of the condonation petition, we condone the delay and admit the appeal for hearing.

3.

Brief facts of the case of the assessee are that the search and seizure operation u/s 132 of the Act was conducted on the residential and business premises of the various companies belonging to the Prithvi Group including the assessee. During the course of search and survey operations, various papers and documents belonging to the assessee were seized. Notices u/s 143(2) was issued in respect of return filed on 31.03.2015. Income shown by the assessee was Rs. 8,83,600/-.Notice u/s 142(1) was issued but none appeared on behalf of the assessee even the last opportunity has been given. The AO has found that the assessee filed copy of IT return with acknowledgement no. of the return, however, on verification from the system, it appears that the acknowledgement number is false and therefore there is no return filed by the assessee for AY 2014-15. The AO had added three additions; i) income from salary at Rs. 16,010/-, ii) income from capital gains at Rs. 2,93,641/- and iii) income from other sources at Rs. 11,15,901/- .

Assessment Year: 2014-15 Rajesh Singhi 4. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the Ld. CIT(A) dismissed the appeal of the assessee by observing thus- The assessee has claimed that the AO has wrongly treated as no return was filed. However, the assessee had not co-operated during the assessment proceedings with the AO. The AO had completed the assessment as per the available data in the absence of assessee.

Being aggrieved and dissatisfied the assessee preferred an appeal before us.

5.

The Ld. Counsel for the assessee before us has submitted that the assessee has to be given an opportunity to place his case before the AO as the return was filed by the assessee was a valid return. The Ld. Counsel further draw the attention of the tribunal that the order passed by the AO confirmed by the Ld. CIT(A) are only on the ground that the assessee did not co-operate in the proceedings before the AO. The Ld. Counsel produce IT return including the acknowledgement copy before us for Ay 2014-15 and submitted that the ITR is a valid ITR.

6.

The Ld. D.R supports the impugned order.

7.

We have gone through the order passed by the AO and find that AO passed order when he found that the acknowledgment number of return in the system appears to be false so there is no return filed by the assessee for the AY 2014-15. The Ld. CIT(A) has also dismissed the appeal of the assessee by giving a finding that the assessee did not co-operate during the assessment proceedings and the AO has completed the assessment as per the available data. The Ld. A.R has submitted that the assessee has filed valid return for AY 2014-15. It is pertinent to mention here that AR before us filed the copy of Income tax return along with acknowledgment.

8.

Going over the order passed by the AO and confirmed by the Ld. CIT(A), we find substance in the arguemnts of the counsel of the assessee that a proper verification regarding filing of ITR is required by AO. Accordingly, the appeal of the assessee is restored in the file of the AO with this direction to pass a fresh order after proper verification and after hearing the assessee. The order passed by the AO confirmed by Assessment Year: 2014-15 Rajesh Singhi the Ld. CIT(A) are hereby set aside. The appeal of the assessee is restored back to the file of AO for fresh adjudication. In the result, the appeal of assessee is allowed for statistical purposes. Order is pronounced in the open court on 10th March, 2025

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