SAI WHEEL TYRES,ELURU vs. INCOME TAX OFFICER, WARD-2, ELURU

1. 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.

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 Sai Wheel Tyres, Eluru 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.

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 Sai Wheel Tyres, Eluru 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.