JOICE MARY PHILIP,KAVIYOOR vs. DCIT, TRIVANDRUM
Facts
The appellant, a non-resident individual, purchased property but did not file an income return for AY 2015-16, leading to reassessment proceedings under Section 147/148 and a proposed addition of Rs. 3,19,380/- for unexplained investment. After the draft assessment, the appellant filed objections with the DRP, but the AO passed the final assessment order without reference to the DRP's fate.
Held
The Tribunal held that since the AO had not considered or referred to the DRP proceedings, the matter must be restored to the AO to await DRP directions. The AO is then directed to pass a fresh final assessment order incorporating the DRP's directions, keeping all other contentions open.
Key Issues
Whether the Assessing Officer could finalize an assessment under Section 144C(13) without acknowledging or incorporating the outcome of proceedings before the Dispute Resolution Panel (DRP).
Sections Cited
147, 148, 144C(13)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH
BEFORE SHRI INTURI RAMA RAO, AM ITA No. 240/Coch/2025 Assessment Year: 2015-16 Joice Mary Philip .......... Appellant Padijarethil, Kaviyoor, Pathanamthitta 689582 [PAN: CFEPP1777A] vs. DCIT, Internatonal Taxation .......... Respondent Thiruvananthapuram
Appellant by: Shri Samuel Thomas, Advocate Respondent by: Shri Sanjit Kumar Das, CIT-DR
Date of Hearing: 28.04.2025 Date of Pronouncement: 30.04.2025
O R D E R This appeal filed by the assessee is directed against the final assessment order passed u/s. 147 r.w.s. 144C(13) of Income Tax Act, 1961 (hereinafter "the Act") dated 27.01.2025 for Assessment Year (AY) 2015-16.
Brief facts of the case are that the appellant is a non-resident individual. As per the information available with the Income Tax Officer, Ward -1 & TPS the assessee purchased immovable property of Rs. 56,40,000/-. However, the assessee had not filed regular return of income for the relevant assessment year. Therefore, the AO formed an opinion that income escaped assessment to tax. Accordingly, a notice u/s. 148 of the Act was issued on 01.06.2022. In response to the notice u/s. 148, the
2 ITA No. 240/Coch/2025 Joice Mary Philip appellant filed return of income on 21.07.2022 declaring income of Rs. 150/-. Against the said return of income, draft assessment was completed by the AO vide order dated 11.03.2024 passed u/s. 147 r.w.s. 144(C)(13) of the Act proposing to make addition of Rs. 3,19,380/- as unexplained investment made on purchase of property. After receipt of the draft assessment order, the appellant filed objection, before the Dispute Resolution Panel (DRP). The fate of the proceedings before the DRP is not known. However, the AO passed final assessment order u/s. 144(C)(13) of the Act on 27.01.2025, after making addition of Rs. 3,19,380/-.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
I heard the rival contentions and perused the material available on record. I am of the considered opinion that since the AO had not made any reference to the fate of the proceedings before he DRP, therefore, the matter requires to be restored to the file of the AO to the stage of receipt of the DRP directions. The AO shall pass the final assessment order after incorporating the directions issued by the learned DRP. All other contentions raised by the appellant are kept open before the AO.
In the result, the appeal filed by the assessee stands partly allowed.
Order pronounced in the open court on 30th April, 2025.
Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 30th April, 2025 n.p.
3 ITA No. 240/Coch/2025 Joice Mary Philip Copy to:
The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order
Assistant Registrar ITAT, Cochin
