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Facts
The assessee filed appeals against an order of the CIT(A) for Assessment Year 2012-13, involving quantum appeal and penalty. The assessee failed to comply with notices from the Assessing Officer and also faced a delay in filing an appeal before the CIT(A), leading to its dismissal.
Held
The Tribunal found that the assessee did not comply with notices from the Assessing Officer. In the interest of justice, the matter was remanded to the Assessing Officer for a de novo assessment. The penalty was deleted as the quantum appeal was set aside.
Key Issues
Whether the matter should be remanded for de novo assessment due to non-compliance by the assessee, and whether the penalty should be deleted in such a case.
Sections Cited
271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR.BRR KUMAR
O R D E R These captioned appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre, Delhi vide order dated 24.05.2024 for the Assessment Year 2012-13, involving quantum appeal and levy of penalty.
AY 2012-13 2. The Assessee has taken the following grounds of appeal:-
1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in passing order without discussing grounds on merits.
ITA Nos. 1344-1345/Ahd/2024 Asst.Year 2012-13 - 2– 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(Appeals) has erred in not condoning the delay in filing of appeal.
3. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming initiation of re- assessment proceedings.
4. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the addition of Rs.11,66,683/- on account of credit entries and cash deposited in bank account without considering that the same was out of business income and earlier cash withdrawals.
5. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the addition of Rs. 1,30,857/- on account of payment made to ING Vysa credit card.
Without prejudice, on the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the addition of entire Rs. 11,66,683/- on account of credit entries and cash deposited in bank account without considering that only profit element can be taxed.
It is therefore prayed that the above addition/disallowance made by the assessing officer may please be deleted.
On going through the record, I find that notices of hearing were issued on several occasions, but the assessee failed to comply with the notices and also there was a delay in filing the appeal before the Ld.CIT(A). Hence, the Ld.CIT(A) dismissed the appeal of the assessee. The Ld. Counsel for the assessee prayed that, given an opportunity, all the details/clarification/explanation would be provided to the revenue authorities. I find that assessee has not even complied before the Assessing Officer, hence in the interest of justice the matter is remanded to the Assessing Officer for conducting assessment de-novo The assessee shall comply Asst.Year 2012-13 - 3– with the notices issued by the Assessing Officer and should not seek unnecessary adjournments.
ITA No.1345/Ahd/2024 for AY 2012-13
Since the quantum appeal stands set-aside to the Assessing Officer for framing assessment de-novo, the penalty levied u/s.271(1)(c) of the Act is hereby deleted. The Assessing Officer is at liberty to initiate the penalty based on the outcome of the assessment order passed in consequences to this order. The assessee shall comply to all the notices issued by the Assessing Officer from time to time failing which, the AO shall initiate penalty proceedings as per the provisions of the Act.
In the combined result, the appeal of the assessee in for AY 2012-13 is dismissed as infructuous.