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Facts
The assessee, Janardan Shyam Bihari Singh, filed an appeal against the order dated 29/11/2023, passed by the learned CIT(A). The assessee had contract receipts of Rs. 1,97,21,145/- and TDS of Rs. 3,96,306/- was deducted. The assessee did not file income tax return nor got his accounts audited.
Held
The Tribunal found the grounds of appeal raised by the Revenue to be cryptic and nebulous, failing to amplify the exact grievance. The Departmental Representative conceded that the appeal lacked merit and suggested dismissal. The Tribunal decided to dismiss the appeals of the Revenue.
Key Issues
Whether the CIT(A) was justified in reducing the addition without properly appreciating the facts, and if the estimation of net profit was justified given the non-filing of return and tax audit report.
Sections Cited
194C, 44AB
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 22/01/2025 Date of Order – 17/02/2025
O R D E R PER K.M. ROY, A.M.
This appeal by the assessee is emanating from the impugned order dated 29/11/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2011–12.
In its appeal, the assessee has raised following grounds:–
“1. Whether on the facts and in the circumstances of the case and in law the Id.CIT(A) is justified in reducing the addition without appreciating the fact that the assessee has paid/credited contract receipts u/s.194C amounting to Rs. 1,97,21,145/- against which TDS amounting to Rs. 3,96,306/- has been deducted which is more than the exemption limit provided u/s.44AB of the IT Act. However, assessee willfully attempted to evade tax and hence, not filed income tax return also failed to get his accounts audited u/s. 44AB and not furnish the Tax audit Report in form no, 3CB/3CD in respect of the previous year relevant to A.Υ. 2011-12.
2 Janardan Shyam Bihari Singh & 40/Nag./2024
2. Whether on the facts and in the circumstances of the case and in law the Id.CIT(A) is justified in reducing the addition without appreciating the fact that there was every possibility of suppression of income by the appellant from contractual business therefore, to safeguard the revenue the estimation of net profit must be justified. Since, the assessee has not filed the return and also failed to submit the tax audit report.
3. Any other grounds which may be raised at the time of hearing with the permission of Hon'ble ITAT.”
On a perusal of the grounds of appeal raised by the Revenue, we find they are cryptic and nebulous. They fail to amplify the exact grievance of the Department. Mechanical approval of grounds of appeal by the competent authority is highly deprecated. Frivolous litigation is wasteful and be eschewed. Anyway, the tax effect is also below ` 60 lakh. The learned Departmental Representative, in all fairness, gracefully submitted that the appeal may be dismissed and further there is no merit in the case as well. After extending thoughtful submissions to the issues before us, we deem it fit to dismiss the appeals of the Revenue in limine.
In the result, appeals by the Revenue stand dismissed. Order pronounced in the open Court on 17/02/2025