SYED AF IBRAHIM,CHENNAI vs. ACIT COMPANY CIRCLE III(2), CHENNAI

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-11, Chennai in dated 29.06.2018 for the assessment year 2006-07.

Shri Syed AF Ibrahim, the assessee, filed his return for the assessment year 2006-07. As per AIR information, the assessee had a transaction of Rs.13,56,000/- through Standard Chartered Bank towards which the assessee could neither explain nor produce evidence and hence the Assessing Officer treated it as the assessee’s income and added to his returned income. Aggrieved, the assessee filed an appeal before the CIT(A). The ld.CIT(A) dismissed the appeal. Aggrieved against the order of the ld.CIT(A), the assessee filed this appeal.

The ld.AR inviting our attention to condonation of delay in filing the appeal for 214 days, submitted that the assessee suffered physical illness and was under medical treatment. Further, on account of huge financial loss, family issues cropped up and on account of all of them, the assessee could not file appeal in time and therefore, it was pleaded that the delay in filing the appeal may be condoned and due justice is rendered.

We heard the rival submissions and condone the delay.

The ld.AR pleaded that the assessee returned income which comprised income from travel agency, insurance commission. The total of receipts from the above sources was Rs.13,56,000/-. The Assessing Officer without considering that the receipts comprised the clients payment made towards the air tickets, the gift received from his NRI brother, etc., assessed the entire credits in the bank account and hence pleaded that the assessment made U/s.143(3) be set aside and the Assessing Officer be directed to accept the return. Per contra, the ld.DR supported the orders of the lower authorities.

We heard the rival submissions. The assessment was made for the reason that the assessee has failed to explain and prove the impugned transactions. Since, the assessee is able to explain and willing to let in evidences towards his explanation, we deem it fit to remit the issues back to the Assessing Officer for a fresh examination. The assessee shall lay all materials in support of his contention before the Assessing Officer and comply with the requirements of the Assessing Officer in accordance with law. The Assessing Officer is also free to conduct appropriate enquiry as deemed fit, however, he shall furnish due opportunity to the assessee on the materials etc., to be used against the assessee and on due

In the result, the assessee’s appeal is treated as partly allowed for statistical purposes.