Loading judgment…
Facts
The assessee is engaged in real estate business. The assessee's return was treated as invalid due to non-e-verification. The assessee had declared an opening stock of Rs. 69.93 Lacs, while the closing stock for the preceding year was 'nil'. The Assessing Officer added this amount to the assessee's income.
Held
The Tribunal noted that the assessee had submitted during appellate proceedings that there was a data entry error. To uphold the principle of natural justice, the Tribunal decided to grant the assessee another opportunity to substantiate its case before the lower authorities.
Key Issues
Whether the addition of Rs. 69.93 Lacs on account of opening stock is sustainable in the absence of proper substantiation by the assessee, and whether a fresh opportunity should be granted to the assessee.
Sections Cited
148, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “सी” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय "ी महावीर िसंह, उपा" एवं माननीय "ी मनोज कुमार अ%वाल ,लेखा सद( के सम । BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2011-12) Shri Kovalam Santhanakrishnan Mohan ITO, बनाम/ Flat No.4/B Block -24 & 25, Ward-1, Swarg Apartments, P.T.Rajan Salai, Ooty. Vs. K.K.Nagar, Chennai-600 078. "थायीलेखासं./जीआइआरसं./PAN/GIR No. AMNPM-3778-N (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : Shri Harhavardhan (Advocate)-Ld. AR " थ"कीओरसे/Respondent by : Ms.R.Anita (Addl.CIT)-Ld. DR सुनवाईकीतारीख/Date of Hearing : 28-08-2024 घोषणाकीतारीख /Date of Pronouncement : 06-11-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 20-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 148 r.w.s 144 of the Act on 03-12-2019. The sole grievance of the assessee is confirmation of addition of Rs.69.93 Lacs on account of opening stock. Having heard rival submissions, the appeal is disposed-off as under.
Upon perusal of assessment order, it could be seen that the assessee is engaged in real estate business. The assessee did not e- verify its return of income and accordingly, the same was treated as invalid return. In this return, the assessee returned opening stock of Rs.69.93 Lacs. However, in the return of income filed for AY 2010-11, the closing stock was reflected as ‘nil’ and accordingly, the said amount was added to the income of the assessee. The assessee failed to file any submissions during assessment proceedings.
During appellate proceedings, the assessee submitted that there was data entry return error and therefore, the return was not e-verified. However, not convinced, Ld. CIT(A) confirmed the stand of Ld. AO against which the assessee is in further appeal before us. 4. The Ld. AR has pleaded for another opportunity to present proper factual position before lower authorities which has been opposed by Ld. Sr. DR. 5. Keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before lower authorities. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case. 6 The appeal stand allowed for statistical purposes. Order pronounced on 06th November, 2024. (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated : 06-11-2024 DS आदेशकीAितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयुA/CIT Madurai /Chennai 4. िवभागीय"ितिनिध/DR 5. गाडFफाईल/GF