G.B.LAKSHMANAKUMAR,CHENNAI vs. ITO NON CORPORATE WARD 17(1), CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 10.08.2017 and pertains to assessment year 2011-12.

Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the assessee filed objection in respect of reopening of assessment, before the Assessing Officer. The Assessing Officer was expected to dispose of the objection by a speaking order before proceeding further. Unfortunately, the Assessing Officer has not disposed of the same. According to the Ld. counsel, when the assessee raised this issue before the CIT(Appeals), the CIT(Appeals) by placing reliance on the judgment of Apex Court in GKN Driveshafts (India) Ltd. v. ITO (2003) 259 ITR 19, found that there was no evidence on record to show that the assessee has raised objection against reopening of assessment. Placing a copy of the objection before this Tribunal, the Ld.counsel submitted that the assessee filed the objection before the Assessing Officer on 11.12.2015. The Assessing Officer also acknowledged the receipt of objection. Therefore, according to the Ld. counsel, the CIT(Appeals) is not justified in saying that there was no evidence for filing objection before the Assessing Officer.

On the contrary, Shri B. Sagadevan, the Ld. Departmental Representative, submitted that the assessee claimed before the Assessing Officer that he has invested in two properties to the extent of ₹37,24,456/-. However, no material evidence was filed before the Assessing Officer as well as the CIT(Appeals).

We have considered the rival submissions on either side and perused the relevant material available on record. The preliminary objection raised by the assessee with regard to filing of objection was not considered properly by the authorities below. A copy of the representation dated 11.12.2015 shows that the Assessing Officer received the same. However, it was not disposed of. Since the CIT(Appeals) proceeded on the finding that there was no evidence for filing objection, this Tribunal is of the considered opinion that the matter needs to be reconsidered. Accordingly, the orders of both the authorities below are set aside and the entire issue raised by the assessee is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the issue in the light of the material available on record and thereafter decide the issue afresh on merit, after giving a reasonable opportunity to the assessee. The Assessing Officer shall dispose of the objection, if any, filed by the assessee as claimed before this Tribunal, by a speaking order.

In the result, the appeal filed by the assessee is allowed for statistical purposes.