SMT. DAMAYANTI DEVAKINANDAN HARLALKA,CHENNAI vs. ACIT, NCC-10(1), CHENNAI

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ITA 3294/CHNY/2019Status: DisposedITAT Chennai03 August 2022AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had not adjudicated the ground regarding the reopening of the assessment. Therefore, the CIT(A)'s order was set aside and the matter was remanded back for adjudication of the reopening issue first.

What were the facts?

The assessee's appeal arose from an order of the CIT(A) concerning the assessment year 2011-12. A key ground of appeal raised before the CIT(A) was that the assessment was reopened without any additional tangible material.

What were the issues?

Whether the assessment was validly reopened without sufficient tangible material. Whether the CIT(A) properly adjudicated the ground of reopening raised by the assessee.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL

Hearing: 03.08.2022Pronounced: 03.08.2022

आदेश /O R D E R

PER MAHAVIR SINGH, VICE PRESIDENT:

1.

This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-12, Chennai in dated 27.09.2019. The assessment was framed by the ACIT, Non-Corporate Circle – 10(1), Chennai for 2011-12 u/s.143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 18.12.2018.

2.

At the outset, the ld.counsel for the assessee took us through Form No.35 filed before CIT(A) along with statement of facts and grounds of appeal. The ld.counsel for the assessee stated that the specific ground of appeal regarding reopening was raised before CIT(A) i.e., Ground No.2 which reads as under:- “The Ld.AO erred in re-opening the assessment without any additional tangible material to show that income has escaped assessment.”

The ld.counsel stated that the CIT(A) has not at all adjudicated the ground of reopening. When a query was put to ld. Senior DR, whether the CIT(A) has adjudicated the ground regarding reopening of assessment, he could not answer.

3.

After hearing rival contentions and going through the facts of the case, we are of the view that the issue of reopening is not adjudicated by the CIT(A) and hence, we set aside the order of CIT(A) and remand the matter back to his file for adjudication of reopening first and subsequently on merits again, in case the assessee is able to explain genuineness of transaction, credit worthiness and identity of the parties. In term of the above, the CIT(A) is set aside and the matter is remanded back to his file.

4.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 3rd August, 2022 at Chennai.

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