S.P.SUBRAMANIAN,NAMAKKAL vs. ITO WARD 2, NAMAKKAL

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ITA 1086/CHNY/2019Status: DisposedITAT Chennai10 March 2020AY 2010-114 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the orders of the lower authorities and restored the issues to the Assessing Officer for re-adjudication. This was done to provide the assessee an opportunity to cooperate and prove their case under Section 44AD.

What were the facts?

The Assessing Officer initiated reassessment proceedings under Section 148 based on AIR information regarding cash deposits. The assessee, engaged in civil contracts, filed a return under Section 44AD after the notice was served. The assessment was completed ex-parte under Section 144, and the CIT(A) confirmed additions.

What were the issues?

Whether the ex-parte assessment was justified and if the assessee should be granted an opportunity to present their case and evidence before the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 148,Section 44AD,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ (SMC

Before: SHRI GEORGE MATHAN

Hearing: 10.03.2020Pronounced: 10.03.2020

आदेश / O R D E R

PER GEORGE MATHAN, JUDICIAL MEMBER:

1.

This is an appeal filed by the assessee against the order of the learned Commissioner of Income Tax (Appeals), Salem in appeal No.176/2017-2018 dated 15.03.2019 for the Assessment Year 2010-2011.

2.

Mr. G. Baskar, Advocate represented on behalf of the Assessee and Ms. R. Anitha, JCIT represented on behalf of the Revenue.

3.

It was submitted by the learned Authorized Representative that the assessee is an individual who is in the business of doing civil contracts. It was a submission that on account of certain AIR information received by the Assessing Officer in respect of the cash deposits to nearly Rs.37.5 lakhs in the Saving Bank Account of the assessee, the Assessing Officer had issued notice u/s.148 of the Income Tax Act, 1961. It was a submission that the assessee had filed his return in response to the notice u/s.148 of the Act on 30.12.2017. It was a submission that the notice u/s.148 was served on 30.03.2017. It was a submission that the assessee did not have substantial turnover and consequently had filed his return of income by applying the provisions of Section 44AD of the Income Tax Act, 1961. It was a submission that the assessment came to be completed u/s.144 of the Income Tax Act, 1961. It was a submission that the assessee could not co-operate with the assessment proceedings as he was in the process of collecting of 3 -: the details. It was a submission that the learned Commissioner of Income Tax (Appeals) also confirmed substantial additions in the assessment order. It was a submission that the assessee may be granted another opportunity to represent his case before the Assessing Officer.

4.

In reply, the learned Departmental Representative did not raise any serious objection.

5.

I have considered the submissions and perused the materials available on record.

6.

It is noticed that the assessment has admittedly been done ex- parte. The assessee has also given an undertaking that he will co- operate in the set aside proceedings.

In these circumstances, in the interest of justice and to provide the assessee an opportunity to prove before the Assessing Officer that his assessment is to be done by applying the provisions of Section 44AD of the Income Tax Act, 1961 and for producing the evidences as called for by the Assessing Officer, the orders of the lower authorities are set aside and the issues are restored to the file

4 -: of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity of being heard.

7.

In the result, the appeal of the assessee in is partly allowed for statistical purpose.

Order pronounced in the open Court on 10th March, 2020 in Chennai.

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