SHRI S. NATESAN,ERODE vs. DCIT, CENTRAL CIRCLE - 1, COIMBATORE

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ITA 3331/CHNY/2019Status: DisposedITAT Chennai18 July 2022AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A)'s orders were non-speaking and lacked independent adjudication. Therefore, the orders were set aside and the matters were remanded back to the CIT(A) for fresh adjudication.

What were the facts?

The assessee appealed against the CIT(A)'s orders for AY 2009-10 and 2010-11. The issues involved disallowance of investments in AY 2009-10 and addition of opening capital in AY 2010-11.

What were the issues?

Whether the CIT(A) properly adjudicated the issues of disallowance of investments and addition of opening capital without resorting to non-speaking orders.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MAHAVIR SINGHAND SHRI MANOJ KUMAR AGGARWAL

Hearing: 18.07.2022Pronounced: 18.07.2022

आदेश /O R D E R

PER MAHAVIR SINGH, VICE PRESIDENT: These two appeals by the assessee are arising out of order of two different orders of the Commissioner of Income Tax (Appeals)- 16, Chennai, in & 133/CIT(A)-16/2015-16 both dated 14.11.2019. The assessments were framed by the DCIT, Central Circle -1, Coimbatore for the assessment years 2009-10 & 2010-11

2.

At the outset, ld.counsel for the assessee stated that for assessment year 2009-10, the only issue under challenge is disallowance confirmed by CIT(A) regarding investments made in the following:- (i) LIC Premium - Rs.1,13,467 (ii) ICICI Prudential Life Insurance – Rs.4,98,500 Total - Rs.6,11,967 In Assessment year 2010-11, the dispute is regarding addition of Rs.30,69,002/- making addition of opening capital u/s.68 of the Act.

3.

The ld.counsel took us through the orders of CIT(A) in both the years and stated that there is no adjudication at all on facts despite remand report taken by CIT(A). The ld.counsel for the assessee read out the orders of CIT(A) and particularly order in assessment year 2009-10 and stated that once the CIT(A) simply affirmed the finding of AO without his independent adjudication, the order cannot survive. When these facts were put across to ld. Senior DR, he strongly relied on the order of CIT(A) and stated that the CIT(A) decided the issue after taking remand report from the AO.

1.

3 & 3332/Chny/2019 4. After hearing both the sides and going through the facts, we noted that in both the years, the adjudication by CIT(A) is by non- speaking order and it is not clear how the CIT(A) has confirmed the addition. Even the assessee seems has not co-operated with the AO by giving full details like bank statements, etc., as noted by the AO. Further, we are inclined to set-aside the orders of CIT(A) in both the years and remand the matter back to his file for fresh adjudication. Further, we direct the assessee also to produce the entire evidence and bank statements before the CIT(A) and also any supporting evidences which helps in adjudication of these issues. In term of the above, orders of CIT(A) in both the years are set aside and matter remanded back to his file for fresh adjudication.

5.

In the result, the appeals filed by the assessee are allowed for statistical purposes.

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