P.RAMALINGAM, NAMAKKAL V. ITO WARD 2 , NAMAKKAL

ITA 1326/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5777 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 01-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D DIVAHARJCITD R
• Assessee Lawyers: S SRINIRANJINI
• Keywords: Presumptive income; Opportunity of being heard; Principle of natural justice; Peak credit; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , , ( BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1326/CHNY/2019 /ASSESSMENT YEAR: 2010-11 SHRI P.RAMALINGAM , 4/123,WEST STREET,NALIPALAYAM, NAMAKKAL 637 003. VS. INCOME TAX OFFICER, WARD-2, NAMAKKAL. [ PAN: AMZPR 5084 Q ] ( * /APPELLANT) ( +,* /RESPONDENT) * - / APPELLANT BY : MS.S.SRINIRANJINI,ADVOCATE +,* - /RESPONDENT BY : MR.D.DIVAHAR,JCIT,D.R - /DATE OF HEARING : 18.09.2019 - /DATE OF PRONOUNCEMENT : 18.09.2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM, IN APP EAL NO.168/2017-18 DATED 15.03.2018 FOR THE ASSESSMENT YEAR 2010-11. 2. MS.S.SRINIRANJINI REPRESENTED ON BEHALF OF THE A SSESSEE, AND MR.D.DIVAHAR REPRESENTED ON BEHALF OF THE REVENUE. ITA NO.1326/CHNY/2019 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS RUNNING FOUR TRUCKS. THERE WERE CERTAIN CASH DEPOSITS IN THE ASS ESSEES ICICI BANK ACCOUNT, AT NAMAKKAL. CONSEQUENTLY, THE ASSESSING O FFICER HAD ON THE BASIS OF AIR INFORMATION, ISSUED NOTICES TO THE ASS ESSEE. ADMITTEDLY, THE ASSESSEE HAD NOT FILED HIS RETURN, NOR CO-OPERATE I N THE ASSESSMENT PROCEEDINGS. IT WAS A FURTHER SUBMISSION THAT THE A SSESSMENT WAS COMPLETED U/S.144 OF THE ACT WHEREIN THE ASSESSING OFFICER HAD ASSESSED THE PEAK CREDIT IN THE BANK ACCOUNT WITH ICICI BANK AS INCOME OF ASSESSEE. IT WAS SUBMITTED THAT ON APPEAL BEFORE L D.CIT(A), THE ASSESSEE HAD SUBMITTED THAT THE ASSESSEE HAD FOUR TRUCKS, TW O TRUCKS IN ASSESSEES NAME & OTHER TWO TRUCKS IN ASSESSEES WIFE NAME, AN D THE DEPOSITS IN THE BANK ACCOUNT RELATED TO THE OPERATIONS IN RESPECT O F FOUR TRUCKS. IT WAS SUBMITTED THAT THE INCOME OF ASSESSEE WAS LIABLE TO BE ASSESSED ON THE PRESUMPTIVE TAXATION U/S.44AE OF THE ACT. ON A SPE CIFIC QUERY FROM THE BENCH AS TO WHY THIS WAS NOT SUBMITTED BEFORE THE A SSESSING OFFICER. THE LD.AR SUBMITTED THAT THE ASSESSEE HAD FEARFUL OF RE PRESENTING BEFORE THE ASSESSING OFFICER AND CONSEQUENTLY DID NOT PROVIDE THE DETAILS. IT WAS A SUBMISSION THAT THE ASSESSEE HAD NO OBJECTION, IF T HE ISSUES WERE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION. IT WAS FURTHER SUBMITTED THAT THE ASSESSEE WOULD CO-OPERATE IN THE SET ASIDE PROCEEDI NGS. 4. IN REPLY, THE LD.DR VEHEMENTLY SUPPORTED THE OR DERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ARGUMENTS RAISED BY LD.AR THAT THE PRESUMPTIVE ITA NO.1326/CHNY/2019 :- 3 -: OF TAX PROVISIONS OF SECTION 44AE OF THE ACT IS LIA BLE TO BE APPLIED IN THE CASE OF ASSESSEE, IS A NEW ARGUMENT. IT IS NOTICED THAT THE ASSESSEE HAS CHALLENGED THE SERVICE OF THE ASSESSMENT ORDER BEFO RE THE LD.CIT(A) AND THAT HAS ALSO BEEN DECIDED AGAINST THE ASSESSEE. HO WEVER, CONSIDERING THE FACT THAT THE ASSESSEE HAD NOT BEEN REPRESENTED BEF ORE THE ASSESSING OFFICER, AND THAT THE ASSESSMENT IS AN EXPARTE ASS ESSMENT, IN THE INTEREST OF NATURAL JUSTICE, THE ISSUES RAISED IN THE APPEAL IS RESTORED TO THE FILE OF ASSESSING OFFICER FOR RE-ADJUDICATION AFTER GRANTIN G ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSIO N OF HEARING ON THE 18 TH SEPTEMBER, 2019 IN CHENNAI. SD/- SD/- ( ) ( INTURI RAMA RAO ) /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) /JUDICIAL MEMBER /CHENNAI, 4 /DATED: 18 TH SEPTEMBER, 2019. K S SUNDARAM - +56 76 /COPY TO: 1. * /APPELLANT 4. 8 /CIT 2. +,* /RESPONDENT 5. 6 + /DR 3. 8 ( ) /CIT(A) 6. /GF