SINGARAYAN BHARATHI FLORANCE JASMINE,COIMBATORE vs. ITO, NCW 5(2), COIMBATORE
Facts
The assessee filed a return for AY 2008-09, which was later reopened under section 148 due to agricultural income escapement. The revised return declared a higher income, and the assessment order under section 143(3) r.w.s 147 assessed a significantly higher income. A notice u/s 263 was issued concerning the purchase of medicines.
Held
The Tribunal noted that proceedings under section 147 concluded when the appeal was withdrawn. Therefore, the assessment order dated 30.03.2016 became final. The subsequent revision u/s 263 was based on this final order, and the appeal challenging the CIT's order dated 25.09.2017 was also withdrawn. Consequently, the jurisdiction of the CIT u/s 263 could not be challenged.
Key Issues
Whether the revision proceedings u/s 263 were valid when the original assessment order had become final and the subsequent appeals were withdrawn. Whether the disallowance of medicine purchase and charging of interest u/s 234B were justified.
Sections Cited
143(3), 263, 147, 148, 40A(3), 234B
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
आयकर अपीलीय अिधकरण ‘ए’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय �ी मनोज कुमार अ�वाल ,लेखा सद� एवं माननीय �ी मनु कुमार िग�र, �ाियक सद� के सम�। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ ITA No.1399/Chny/2024 (िनधा�रणवष� / Assessment Year: 2008-2009) Singarayan Bharathi Florance Jasmine, Vs. The Income Tax Officer, No.16/177A, Marapalam Madukkarai, Non Corporate Ward 5(2) Coimbatore 641 105. Coimbatore [PAN: AAGPF 2956C] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri. Y. Sridhar, F.C.A. ��यथ� क� ओर से /Respondent by : Ms. Kavitha, IRS, Addl.CIT. सुनवाई क� तार�ख/Date of Hearing : 29.08.2024 घोषणा क� तार�ख /Date of Pronouncement : 29.08.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
The appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] dated 11.01.2024 for Assessment Years2008-09.
The assessee has assailed the impugned order on 1-7 grounds. However, we find that the grounds are argumentative and descriptive although assessee termed
2 ITA No.1399 /Chny/2024 the same as ‘CONCISE GROUNDS OF APPEAL’. In sum and substance the grounds may be rephrased as under: I. The order of CIT(A), NFAC, Delhi on the facts and circumstances of the case, the order passed by the Ld.Assessing Officer (‘AO’ in short) u/s 143(3) r.w.s 263 is bad in law and on facts. II. The order of CIT(A), NFAC, Delhi on the facts and circumstances of the case, erred in upholding the order of AO dated 19.04.2018 in computing the assessed income u/s 143(3) r.w.s 263 of the Act wherein ld.AO has taken the assessed income of Rs.1,51,71,096/- u/s 143(3) r.w.s 147 dated 30.03.2016. III. The ld.CIT(A) erred in upholding the disallowance of medicine purchase of Rs.10,92,649/ u/s 40A(3) of the Act. IV. The order of CIT(A), NFAC, Delhi on the facts and circumstances of the case, erred in upholding the order of AO charging interest u/s 234B of the Act.
Succinctly stated, the facts involved in the present case which will have a strong bearing on the adjudication of the same are for the sake of clarity are culled out in a chronological manner, as under: Date Particulars 31.07.2008 Return of Income for AY 2008-09 filed declaring income at Rs.2,47,112/-. 31.03.2015 Case reopened u/s 148 of the Act for the reason of agricultural income escapement. 22.12.2015 Assessee filed return of income in response to section 148 notice declaring income at Rs.2,92,300/-. 30.03.2016 Assessment order u/s 143(3) r.w.s 147 assessed at Rs.1,51,71,096/-.
3 ITA No.1399 /Chny/2024 15.06.2017 CIT(A) dismissed the appeal challenging assessment order dated 30.03.2016 (supra). 19.01.2017 Notice u/s 263 of the Act was issued. Reason being purchase of medicines of Rs.10,92,649/-. 25.09.2017 Order u/s 263 of the Act. 12.04.2018 Tribunal order in ITA Nos.2081 & 2785/Chny/2017: Assessee during the hearing before the Tribunal had withdrawn the appeal (ITA No.2081/Chny/2017) which was filed against the dismissal order of CIT(A) dated 15.06.2017. Assessee also sought withdrawal of appeal (ITA No.2785/Chny/2014) wherein assessee had challenged the invoking of jurisdiction u/s 263 dated 19.01.2017. 19.04.2018 Order u/s 143(3) r.w.s.263 of the Act. AO computed income as under: Total income assessed u/s 143(3) r.w.s. 147 on 30.03.2016 ……Rs.1,51,71,096/- Add: Purchase of medicine ……Rs.10,92,649/- Total income assessed …… Rs.1,62,63,745/- 11.01.2024 Impugned order passed by CIT(A) upholding order of AO dated 19.04.2018 u/s 143(3) r.w.s 263 of the Act.
As the facts and proceedings before the lower forum and tribunal narrated in brief in above chart. Hence, there is no need to narrate each proceedings separately. Now the assessee is in appeal before us. We have heard the rival submissions and perused the entire appeal records. We find that proceedings pursuant to section 147 is concluded when appeal was withdrawn by the assessee before the Tribunal. Hence, the order u/s 143(3) r.w.s 147 dated 30.03.2016 had become final and cannot be agitated in this proceedings. Now for the purposes of revision u/s 263 the basic order was order u/s 143(3) r.w.s 147 dated 30.03.2016 which had been revised by the ld.CIT by the order dated 25.09.2017. Appeal
4 ITA No.1399 /Chny/2024 against the order of CIT dated 25.09.2017 appeal had also been withdrawn by the assessee before the Tribunal hence, jurisdiction of CIT u/s 263 cannot be challenged in this present proceedings. In view of the aforesaid observations, we upheld the order of the ld.CIT(A) on the ground No.1 and 2.
We have also gone through the findings of the ld.CIT(A) on merits with respect to ground No.3 supra. We are not convinced by the arguments of the assessee which were also taken before the CIT(A). Therefore, we upheld the findings given at para 7.2 of the ld.CIT(A) order. Hence ground No.3 is dismissed. Ground No.4 is consequential in nature hence infructuous.
In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 29th day of August, 2024 at Chennai.
Sd/- Sd/- (मनोज कुमार अ�वाल) (मनु कुमार िग�र) (MANOJ KUMAR AGGARWAL) (MANU KUMAR GIRI) लेखा सद� / ACCOUNTANT MEMBER �ाियक सद� / JUDICIAL MEMBER चे�ई Chennai: िदनांक Dated:29-08-2024 KV आदेश क� ��त�ल�प अ�े�षत /Copy to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF
