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

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.

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.”

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.

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