NATIONAL RADIO ELECTRONICS,KANNUR vs. ITO, CIRCLE-1, KANNUR

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ITA 250/COCH/2024Status: DisposedITAT Cochin09 December 2024Bench: Shri Inturi Rama Rao (Accountant Member), Shri Prakash Chand Yadav (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the NFAC's order was a mere dismissal without independent application of mind. Therefore, the order was set aside for a fresh de novo disposal.

What were the facts?

The assessee, a partnership firm, filed its return of income for AY 2017-18. The AO made additions under Section 36(1)(va) and Section 145A, increasing the total income significantly. The CIT(A)/NFAC confirmed the AO's order.

What were the issues?

Whether the NFAC's order was passed with due application of mind and independent finding. Whether the additions made by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 36(1)(va),Section 145A,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav

Hearing: 19.11.2024

O R D E R

Per Inturi Rama Rao, AM :

1.

This appeal filed by the assessee is directed against the order of the CIT(A) / NFAC DIN & Order No.ITBA/NFAC/S/250/2023- 24/1059382503(1) dated 4th January, 2024 for the assessment year 2017-2018.

2.

Briefly stated the facts of the case are that the assessee is a partnership firm engaged in the business of dealing with the electronics and home appliances. The return of income for the assessment year 2017-2018 was filed on 31.01.2018 declaring income of Rs.1,49,69,270. Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 27.12.2019

(i) Addition u/s.36(va) of the Act Rs.2,75,999 (ii) Addition to the value of closing stock u/s.145A of the Act. Rs.2,34,58,940

3.

Being aggrieved by the above assessment order, the assessee has filed appeal before the learned Commissioner of Income-tax (Appeals), who vide the impugned order confirmed the action of the AO.

4.

Being aggrieved, the assessee is in appeal before us in the present appeal. When the appeal was called, none appeared on behalf of the assessee despite due service of notice of hearing, therefore, we proceed to dispose of the appeal on merits based on the written submission available on record.

5.

We have heard the learned Departmental Representative and perused the material on record. On perusal of the order passed by the NFAC it would reveal that the NFAC had merely dismissed the appeal after extracting the statement of facts and assessment order without stating the points for consideration and giving an independent finding on the issues raised in the grounds of appeal. Thus, the order of the NFAC does not exhibit any independent application of mind. Therefore, the order passed by the NFAC is hereby set aside to the file of the NFAC for fresh de novo disposal of the appeal on merits in accordance with law after affording due opportunity of being heard to the assessee.

Order pronounced on this 09th day of December, 2024.

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