INCOME TAX OFFICER WARD-2, CHANDRAPUR, CHANDRAPUR V. JANARDAN SHYAM BIHARI SINGH, CHANDRAPUR

ITA 40/NAG/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-2, Chandrapur against Janardan Shyam Bihari Singh concerning the assessment years 2011-12 and 2014-15. The primary issues revolved around the alleged failure of the assessee to file income tax returns and get his accounts audited under section 44AB of the Income Tax Act, despite having substantial contract receipts and deducted TDS. The Revenue argued that the assessee attempted to evade tax and possibly suppressed income from contractual business. However, the Tribunal found the Revenue's appeal to be lacking in substance and dismissed it based on the low tax effect and vague grounds of appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41516 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Assessee Lawyers: MAHAVIR ATAL
• Keywords: Tax effect; TDS
• Section: 44AB

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.37 & 40/Nag./2024 (Assessment Year : 2011–12 & 2014–15) Income Tax Officer Ward–2, Chandrapur ……………. Appellant v/s Janardan Shyam Bihari Singh Ganesh Nagar, Near Garmel Academy D.O.C. Road, Tukum Chandrapur 442 401 PAN – AFPPS7844J ……………. Respondent Assessee by : Shri Mahavir Atal Revenue by : Shri Abhay Y. Marathe Date of Hearing – 22/01/2025 Date of Order – 17/02/2025 O R D E R PER K.M. ROY, A.M. This appeal by the assessee is emanating from the impugned order dated 29/11/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2011–12. 2. In its appeal, the assessee has raised following grounds:– “1. Whether on the facts and in the circumstances of the case and in law the Id.CIT(A) is justified in reducing the addition without appreciating the fact that the assessee has paid/credited contract receipts u/s.194C amounting to Rs. 1,97,21,145/- against which TDS amounting to Rs. 3,96,306/- has been deducted which is more than the exemption limit provided u/s.44AB of the IT Act. However, assessee willfully attempted to evade tax and hence, not filed income tax return also failed to get his accounts audited u/s. 44AB and not furnish the Tax audit Report in form no, 3CB/3CD in respect of the previous year relevant to A.Υ. 2011-12. 2 Janardan Shyam Bihari Singh ITA no.37 & 40/Nag./2024 2. Whether on the facts and in the circumstances of the case and in law the Id.CIT(A) is justified in reducing the addition without appreciating the fact that there was every possibility of suppression of income by the appellant from contractual business therefore, to safeguard the revenue the estimation of net profit must be justified. Since, the assessee has not filed the return and also failed to submit the tax audit report. 3. Any other grounds which may be raised at the time of hearing with the permission of Hon'ble ITAT.” 3. On a perusal of the grounds of appeal raised by the Revenue, we find they are cryptic and nebulous. They fail to amplify the exact grievance of the Department. Mechanical approval of grounds of appeal by the competent authority is highly deprecated. Frivolous litigation is wasteful and be eschewed. Anyway, the tax effect is also below ` 60 lakh. The learned Departmental Representative, in all fairness, gracefully submitted that the appeal may be dismissed and further there is no merit in the case as well. After extending thoughtful submissions to the issues before us, we deem it fit to dismiss the appeals of the Revenue in limine. 4. In the result, appeals by the Revenue stand dismissed. Order pronounced in the open Court on 17/02/2025 Sd/- V. DURGA RAO JUDICIAL MEMBER Sd/- K.M. ROY ACCOUNTANT MEMBER NAGPUR, DATED: 17/02/2025 3 Janardan Shyam Bihari Singh ITA no.37 & 40/Nag./2024 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "