ARADHANA JAIN,CHENNAI vs. ITO, NON CORPORATE CIRCLE-11(1), CHENNAI

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ITA 335/CHNY/2024Status: DisposedITAT Chennai18 June 2024AY 2018-19Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal accepted the assessee's request to substantiate its case and restored the matter to the Assessing Officer for de novo assessment. The assessee was directed to provide evidence for the liabilities.

What were the facts?

The Assessing Officer invoked Section 41(1) and added Rs. 97.77 Lacs alleging remission/cessation of trading liability. The CIT(A) confirmed this addition as the assessee failed to provide documentary evidence for the liabilities.

What were the issues?

Whether the CIT(A) was correct in confirming the addition of trading liability without allowing the assessee an opportunity to substantiate its claim.

Which sections of the Income-tax Act were involved?

Section 41(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

pआयकर अपीलीय अिधकरण ‘ए’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ,ी मनोज कुमार अ0वाल ,लेखा सद5 एवं माननीय ,ी मनु कुमार िग8र, �ाियक सद5 के सम9। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा:रणवष: / Assessment Year: 2018-19) Smt. Aradhana Jain ITO बनाम/ Non-Corporate Ward-11(1) 19, Karuppannan Street, Vs. Chennai. Chennai-600 001. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AKFPJ-9495-D (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri S. Sridhar (Advocate) -Ld.AR � थ�कीओरसे/Respondent by : Shri R. Mukundan (JCIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 13-06-2024 घोषणा की तारीख /Date of Pronouncement : 18-06-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 24-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 143(3A) & 143(3B) of the Act on 06-04-2021. In the assessment order, Ld. AO invoked provisions of Sec.41(1) and made addition of Rs.97.77 Lacs alleging remission / cessation of trading liability. The Ld. CIT(A) confirmed the same on the ground that the assessee did not file any documentary evidences to support existence of liabilities. Aggrieved, the assessee is in further appeal before us.

2.

The ld. AR has submitted that the assessee is in a position to substantiate its case and therefore, the matter may be remitted back to lower authorities. The Ld. Sr. DR opposed the same. Accepting the prayer of Ld. AR, we set aside the impugned order and restore the matter back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case. 3. The appeal stands allowed for statistical purposes. Order pronounced on 18th June, 2024 Sd/- Sd/- (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) �ाियक सद5 / JUDICIAL MEMBER लेखा सद5 / ACCOUNTANT MEMBER चे5ई Chennai; िदनांक Dated :18-06-2024 DS आदेशकीNितिलिपअ0ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु>/CIT,Chennai . 4. िवभागीय�ितिनिध/DR 5. गाडCफाईल/GF

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