KAMADEV BEHERA,KHURDA vs. NATIONAL FACELESS ASSESSMENT CENTRE,DELHI, DELHI
Facts
The assessee filed an appeal against the order passed by the PCIT under section 263 of the Act for AY 2017-2018. The assessee argued that all details were provided and the PCIT's order should be quashed. The Revenue contended that the assessee was non-cooperative during the assessment proceedings, leading to estimated additions.
Held
The Tribunal found that the assessee was given multiple opportunities during the original assessment but failed to cooperate and provide necessary documents. The PCIT, under section 263, directed the AO to re-examine certain issues after the assessee's lack of cooperation deprived the AO of proper verification.
Key Issues
Whether the PCIT's order under section 263 directing further examination by the AO is justified, considering the assessee's lack of cooperation during the original assessment proceedings.
Sections Cited
263, 69A, 115BBE
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश कुमार, लेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.97/CTK/2025 (नििाारण वर्ा / Assessment Year : 2017-2018) Kamadev Behera Vs PCIT-1, Bhubaneswar At:- Narendrapur, P.O:- Nirakarpur, Khurda, 752019 PAN No. : AXXPB 9473 G (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri N.R.Biswal, CA राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 24/09/2025 घोषणा की तारीख/Date of Pronouncement : 24/09/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of Ld. PCIT, Bhubaneswar-1, passed u/s. 263 of the Act dated 24.03.2024 for the assessment year 2017-2018. 2. It was submitted by the Ld. AR that all the details have been produced before the Ld.CIT(A) and the AO and that the details have been provided before the Ld.PCIT. It was submission that the Ld. PCIT has not set aside the assessment order and, therefore, order u/s.263 of the Act is liable to be quashed. It was submission that the assessee is only a dealer in banana and the transactions are all by cheque. It was submission that in the original assessment order, the AO had estimated the income of the assessee at 8%, but the Ld. PCIT has asked the AO to examine the sources of the cash deposits, which has remained unverified and to apply the provisions of section 69A and 115BBE of the Act. It was submission
2 ITA No.97/CTK/2025 that as all the transactions were by cheque, the assessee should not be harassed with order u/s. 263 of the Act. It was the submission that order u/s.263 of the Act is liable to be quashed. 3. In reply, Ld. CIT DR submitted that in the course of original assessment order, the assessee had submitted that the assessee was unaware of the Income tax provisions then within the one month the assessee had got its account audited and had also filed its return of income. It was further submissions that the assessee has non-cooperative in the assessment proceeding. It was the submission that the said led to estimated additions being made. It was the submission that the Ld. PCIT had examined the records and had found that the AO had not done the verification as per required to be verified and the sources of the cash deposits were not examined. It was the submission that the order u/s.263 of the Act is liable to be upheld. 4. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the in the course of original assessment proceedings multiple opportunities have been given by AO to the assessee. The first notice was issued as early as on 27.08.2021. There has been no cooperation at all from the assessee’s side. Nothing has been produced in the course of assessment proceedings and in response to a show cause notice issued by the AO on 24.02.2022, the assessee has filed a letter which has been extracted by the AO in his assessment order even in that the documents or details called for by the AO had not been produced. Admittedly, this has resulted into the AO being compelled to pass an ex-parte order estimating the income of the
3 ITA No.97/CTK/2025 assessee by rejecting the books of accounts of the assessee. A perusal of the order passed u/s. 263 of the Act shows that the certain documents were produced before the Ld. PCIT in the 263 proceedings. The documents produced also substantiated the claim raised by the Ld. PCIT in the show cause notice that there are issues which required examination which have not been verified by the AO, admittedly, because of the failure on the part of the assessee to provide the details before the AO. These evidences were also coming out of the audit report filed along with the alleged return delayed. The act of the assessee is nothing but contumacious conduct denying the AO the opportunity to complete the assessment in the process that it is required to be done. Now, when the ld. PCIT has brought out the issues that required to be verified the assessee is raising allegations in respect of the claims that documents had been produced and the PCIT did not have the power u/s. 263 of the Act to direct for verification. This is not permissible. 5. A further perusal of the order of the Ld. PCIT passed u/s. 263 of the Act clearly shows that he has directed to the AO to examine above issues mentioned in the u/s.263 of the order for the limited purpose and for that purpose remitted the issues back to the AO to decide the matter after giving adequate opportunity of being heard. Admittedly, the ld. PCIT has not set aside the assessment order, he has directed the AO to modify the assessment order in respect of the issues which have been raised by the Ld. PCIT. In fact, this clearly shows that the Ld. PCIT is upholding the assessment order wherein the estimation of the income has been done at 8% and directing the AO to do further examination in respect of issues
4 ITA No.97/CTK/2025 which have not been considered in the assessment proceedings, in sofar as the assessee himself has by his contumacious conduct deprived the AO of verification. This being so, we find no reasons to interfere the order of the Ld. PCIT passed u/s. 263 of the Act. Consequently, the appeal of the assessee is stands dismissed. 6. In the result, appeal of the assesee is dismissed. Order dictated and pronounced in the open court on 24/09/2025. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 24/09/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant- Kamadev Behera At:- Narendrapur, P.O:- Nirakarpur, Khurda, 752019 2. प्रत्यर्थी / The Respondent- PCIT-1, Bhubaneswar 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, 5. Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// आदेशािुसार/ BY ORDER,
(Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack
