SAI WHEEL TYRES,ELURU vs. INCOME TAX OFFICER, WARD-2, ELURU
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
Per Shri Duvvuru RL Reddy, Judicial Member :
This appeal is filed by the assessee against the order of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250/2023-24/105684778(1) dated 14.09.2023, arising out of order passed u/s 144 of the Income Tax Act, 1961 (in short ‘Act’) dated 20.11.2019 for the Assessment Year (A.Y.) 2017-18. 2. Brief facts of the case are that the assessee firm, which deals in trading of tyres being authroized dealer for MRF tyres at Eluru, filed it’s
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return of income for the A.Y.2017-18 on 07.11.2017, declaring total income of Rs.8,62,450/- on a turnover of Rs.4,25,97,647/-. The Assessing Officer(AO) completed the assessment u/s 144 of the Act and passed an order dated 20.11.2019, determining the total income at Rs.4,77,31,610/- and raised a demand of Rs.5,89,96,229/-.
Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee as per the provisions of section 249(4) of the Act.
Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal :
The order of the learned Commissioner of Income Tax(Appeals) is contrary to the facts and also the law applicable to the facts of the case.
The learned Commissioner of Income Tax (Appeals) is not justified in erroneously dismissing the appeal in terms of S.249(4) of the Act for alleged non payment of the advance tax.
Any other grounds may be urged at the time of hearing.
At the outset, the Ld.AR brought to our notice that the Ld.CIT(A) dismissed the appeal of the assessee erroneously, saying that the assessee has not filed the return of income as well as not paid an amount equal to the amount of advance tax for the A.Y.2017-18, though the assessee had filed the return of income and paid self assessment tax with the PAN ACFFS6691C. The Ld.AR submitted that the assessee firm was allotted PAN
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ACFFS6691C on 08.11.2012 and another PAN ACSFS0682C was allotted on 08.12.2012, which was linked to bank account bearing No.6285003570 with Indian Bank, RR Pet Branch, Eluru. However, while filing the return of income, the firm has been using PAN ACFFS6691C since A.Y.2015-16 and even filed the return of income for the impugned A.Y.2017-18 with the PAN ACFFS6691C. The assessee took necessary steps to deactivate PAN ACSFS0682C linked to bank account. The Ld.AR further submitted that the assessee has been regularly filing returns of income with PAN ACFFS6691C, in which, the deposits made in the above bank account were duly taken into turnover for the purpose of income tax and there was no escapement of income for any assessment year and even for the impugned A.Y.2017-18. The Ld.AR further submitted that no business was carried on by the assessee with PAN ACSFS0682C, though it was linked to bank account. The Ld.AR, therefore, submitted that the assessment made with PAN ACSFS0682C u/s 144 of the Act and order passed on 20.11.2019 for the A.Y.2017-18 is bad in law and the Ld.CIT(A) is also not justified in dismissing the appeal of the assessee as per the provisions of section 249(4) of the Act. He, therefore, pleaded to set aside the order passed by the Ld.CIT(A) and allow the appeal of the assessee.
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Per contra, the Ld.DR has submitted that since the assessee has not filed any return of income for the A.Y.2017-18 with the PAN ACSFS0682C linked to Indian Bank account and has not paid an amount equal to the amount of advance tax for the A.Y.2017-18, the Ld.CIT(A) is justified in dismissing the appeal of the assessee in-limine as per the provisions of section 249(4) of the Act. He, therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee.
We have heard both the parties and perused the material placed on record. It is an admitted fact that the assessee filed it’s return of income for the impugned A.Y.2017-18 and paid self assessment tax also with the PAN ACFFS6691C. The assessee filed paper book before us and contended that assessee cannot be considered as non-filer since no business was carried on by the assessee with PAN ACSFS0682C though it was linked to Indian Bank account and the transactions reflected in this bank account have been taken into account while filing the returns of income from A.Y.2015-16 with PAN ACSSF6691C. In view of the foregoing facts and circumstances of the case, we find force in the argument of the Ld.AR and therefore set aside the orders passed by the Ld.CIT(A) and remit the matter back to the file of the Ld.CIT(A) to dispose off the appeal on merits after giving one more
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opportunity of being heard to the assessee. Accordingly, the grounds raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 28th February,2024. (एस बालाकृष्णन) (दुव्वूरु आर.एल रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER Dated : 28 .02.2024 L.Rama, SPS
आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– Sai Wheel Tyres, D.No.25/15/1, Opp.ZP Office, NR Peta, Eluru, West Godavari Dist. 2. रधजस्व/The Revenue – The Income Tax Officer, Ward-2, Income Tax Officer, D.No.23-B-4-6/4, KKS Towers, RR Pet, Eluru
The Principal Commissioner of Income Tax, Rajahmundry 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
