ARUNACHALAM,CHENNAI vs. ITO, NCW15(1), CHENNAI
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the assessee failed to cooperate and make submissions before the CIT(A) despite multiple notices and a previous direction from the ITAT. Therefore, the assessment order passed by the AO stands confirmed as per the earlier directions.
What were the facts?
The Assessing Officer reopened the assessment and made an addition of Rs. 1,13,65,465/- on account of cash deposits. The CIT(A) confirmed the addition. The ITAT set aside the CIT(A)'s order and directed the assessee to be given another opportunity, with a warning that the assessment order would stand confirmed if the assessee did not cooperate.
What were the issues?
Whether the assessment order should be confirmed due to the assessee's non-cooperation in the appellate proceedings after a previous remand by the ITAT.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI JAGADISH
Arunachalam, The Income Tax Officer, 21/3 (Old No.43A), Vs. Non Corporate Ward-15(1), 2nd Avenue Road, Indira Nagar, Chennai. Adyar, Chennai – 600 020. [PAN: ADWPA 9208M] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथE की ओर से/ Appellant by : Shri N.V. Lakshmi, Advocate GHथE की ओर से /Respondent by : Shri V. Justin, JCIT सुनवाई की तारीख/Date of Hearing : 25.07.2024 घोषणा की तारीख /Date of Pronouncement : 31.07.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2011-12 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 13.02.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s 147 of the Income Tax Act, 1961 (hereinafter “the Act”) on 24.12.2018.
The brief facts of the case are that the assessee has filed his return of income on 26.03.2013 admitting total income of Rs.3,00,000/.
The A.O has reopened the assessment on the basis of information received from FIU-IND data base by issuing notice u/s. 148 of the Act.
In response to which, the assessee has filed return of income showing total income of Rs.3,09,088/-. The AO has issued show cause notice to explain the source of cash deposit in bank account, but the assessee did not submit any explanation. Therefore, the A.O has made addition on cash deposit in bank account u/s. 68 of the Act at Rs. 1,13,65,465/-.
Aggrieved against the order of the Ld. CIT(A), the assessee has filed appeal before Ld. CIT(A) and Ld. CIT(A) has confirmed the addition as the assessee did not made any submission in response to notice issued.
The assessee has filed appeal before ITAT, vide order dated 10.03.2021. The ITAT has set aside the order of Ld. CIT(A) as per following directions:
“….on perusal of the appellate order, we find that the Ld. CIT(A) has not issued any notice fixing the appeal for hearing or called for any details from the assessee before concluding the appellate order. In view of the above, we set aside the order of the Ld. CIT (A) and direct him to afford one more opportunity to the assessee to represent his case. The assessee is also directed to cooperate with the Department, failing which, the Assessment order passed u/s 144 r.w.s 147 of the Act stands confirmed.”
The Ld.CIT(A) in set aside proceedings issued notices on 24.08.2023, 14.09.2023, 05.10.2023, 21.11.2023, 18.12.2013, 01.01.2024, and 09.01.2024. However, the assessee did not make any submissions before the Ld. CIT(A). Now, before us the assessee has filed appeal against the above order.
The Ld. AR has contended that the matter may be send back to the Ld. CIT(A) as the order passed ex-parte. The Ld. AR has also submitted that in the case of assessee for A.Y 2010-11 and 2012-13, the Hon’ble ITAT has restored back the appeal to Ld. CIT(A) for denovo adjudication vide & 606/Chny/2024 dated 29.05.2024.
The Ld. DR, on the other hand, has submitted that it is the second round of appeal and in the first round the Hon’ble ITAT while setting aside the order of Ld.CIT(A) directed to afford one more opportunity to the assessee to represent his case and further directed the assessee to co-operative with the Department failing which the assessment order passed u/s. 144 r.w.s 147 of the Act will stand confirmed. Still the assessee has not co-operated with the Department and therefore, as per direction of Hon’ble ITAT, the assessment order passed stands confirmed.
We have heard the rival contentions, and perused the earlier order passed by the Bench. This Bench had set aside the Ld. CIT(A) order as it was ex-parte. But, while setting aside the appeal to Ld. CIT(A), the Bench has directed assessee to cooperate with the Department failing which the assessment order passed u/s.144 r.w.s 147 of the Act stands confirmed. It is seen that the assessee, despite being given seven notices by the Ld. CIT(A) has not cooperated and has not made any submissions. The Ld. A.R has requested to set aside the appeal to Ld. CIT(A), in the line of order passed in for A.Y 2010-11 and ITA No.606/Chny/2020 for AY 2012-13 dated 29.05.2024. We are not in agreement with the request made by the Ld. AR, as in the order being relied for A.Y 2010-11, assessee had filed additional evidence which was not considered by Ld. CIT(A) and in A.Y 2012-13, the assessee has not appeared after seeking adjournment. In the present case, this Bench had passed similar order setting aside Ld. CIT(A) order and has given directions to the assessee to appear before Ld. CIT(A), failing which order stands confirmed. The assessee, despite being given opportunity by the Bench has not appeared before Ld. CIT(A), though the Ld. CIT(A) has issued notices. Therefore, as per directions issued by the Bench in first round, the assessment order is hereby confirmed.
In the result, the appeal filed by the assessee is dismissed.
Order pronounced on 31st July, 2024.
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