SUAJKISHAN DEOKISHAN THANVI, SILVASSA V. INCOME TAX OFFICER, INCOME TAX OFFICER WARD2, VAPI

ITA 145/SRT/2021

AI Insights

The case involves Suajkishan Deokishan Thanvi, an individual and senior citizen, who did not file his income tax return for the Assessment Year 2010-11. The Income Tax Officer (ITO) reopened the case under Section 147 of the Income Tax Act, 1961, and issued notices under Section 148, which the assessee did not respond to. Consequently, the ITO added professional receipts and interest income to the assessee's income as unaccounted income. The assessee's appeal to the CIT(A) was unsuccessful, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal dismissed the appeal, agreeing with the lower authorities that the assessee's failure to comply with statutory requirements precluded him from claiming deductions for life insurance premiums and housing loan interest.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302074 (ITAT-SURAT)
• Duration Of Justice: 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2022
• Appeal Filed By: Assessee
• Order Result: DismissedAllowed
• Bench Allotted: DB
• Next Hearing Date: 02-04-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 12-09-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources; TDS; FORM 26AS
• Section: 148; 144; 80C; 139; 142(1); 139(1); 139(4)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA No. 145/Srt/2021 (Assessment Year: 2010-11) Suajkishan Deokishan Thanvi, B/204, Mayuri Appt., Amli Road, Silvasa-396230. PAN No. ACYPJ 7355 D Vs. I.T.O., Ward-2, Vapi. Appellant/ assessee Respondent/ revenue Appellant represented by None Respondent represented by Shri J.K. Chandnani, Sr.DR. Date of hearing 09/06/2022 Date of pronouncement 09/06/2022 Order under section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 16/07/2021 for the Assessment year 2010-11 wherein the assessee has raised following grounds of appeal: “1. In the given facts and law, the learned Assessing Officer has erred in adding entire professional receipts of Rs. 6,34,765/- as 100% business profit of the appellant and also erred in assessing the total of the appellant without the given benefit of Life Insurance premium, housing loan interest and repayment of housing loan. 2. In the given facts and law, the learned Assessing Officer has erred in not allowing TDS credit of Rs. 81,981/- duly reflecting in form 26AS.” ITA No. 145/Srt/2021 Suajkishan Deokishan Thanvi Vs ITO 2 2. The brief facts of the case are that the assessee is an individual and claiming to be Senior citizen, has not filed his return of income for the assessment year (A.Y.) 2010-11. The case of assessee was reopened with prior approval from higher authorities of the department. Notice under Section 148 of the Income Tax Act, 1961 (in short, the Act) was issued on 31/3/2017. The Assessing Officer noted that the assessee was served number of notices under Section 142 of the Act and final show cause notice for proceedings ex parte. The assessee made no compliance. The details of various notices and non-compliance are recorded by the Assessing Officer in para 3 of his order in the following manner: Sr. No. Notice/Letter Date of issue of notice Date of hearing Remarks 1. U/s 148 31/03/2017 30/04/2017 Nobody attended 2. A Notice u/s 142(1) r.w.s. 129 alongwith questionnaire 31/07/2017 24/08/2017 Nobody attended 3. A Non-compliance letter 28/08/2017 07/p9/2017 Nobody attended 4. 2 nd Reminder letter 11/09/2017 22/09/2017 Nobody attended 5. Show cause notice for ex parte assessment u/s 144 of the Act 09/10/2017 18/10/2017 Nobody attended. The Assessing Officer recorded that in absence of proper compliance, he has no option except to proceed ex parte and to complete the assessment order within time. The Assessing Officer noted that on perusal of Form No. 26AS, the assessee received professional receipt of Rs. 6,34,765/-. The ITA No. 145/Srt/2021 Suajkishan Deokishan Thanvi Vs ITO 3 assessee has not filed return of income nor offered the explanation about the professional receipt, therefore, entire professional receipt was treated as unaccounted income and added to the income of the assessee. The Assessing Officer further noted that the assessee has received interest of Rs.1,31,738/- as reflected in Form No. 26AS. The Assessing Officer in absence of any explanation treated the interest income as unaccounted income and added to the income of assessee. 3. On appeal before the ld. CIT(A), the assessee furnished certain written submissions. The assessee its written submission submitted that due to health problem, the assessee could not attend the assessment proceedings. The assessee filed return of income declaring income of Rs. 6,10,410/- including net profit from profession at Rs. 4,98,925/- and bank interest of Rs. 1,40,770/-. The Assessing Officer added the entire gross professional receipt to the income of assessee and not granted deduction under Section 80C of the Act. The assessee was engaged in professional consultancy and TDS was already deducted on professional receipt of Rs. 6,34,765/-. The return could not be filed in time due to mistake of Income Tax Practitioner (ITP). The ld. CIT(A) after considering the submission of assessee held that the assessee filed return of income for A.Y. 2010-11 on 15/12/2017. However, the assessment order under Section 144/147 of the ITA No. 145/Srt/2021 Suajkishan Deokishan Thanvi Vs ITO 4 Act was passed on 26/10/2017, thus the return of income was treated as nonest and invalid. On the merit of addition, the ld. CIT(A)/NFAC held that the matter was remanded to the Assessing Officer and the Assessing Officer filed his remand report dated 21/10/2020 and contended that no return of income was filed in response to notice under Section 148 of the Act. After considering the submission of assessee, the ld. CIT(A)/NFAC upheld the addition of Rs. 6,34,765/-. 4. Further aggrieved, the assessee has filed the present appeal before this Tribunal. 5. None has appeared on behalf of assessee despite the service of notice on more than one occasions. Perusal of record shows that the adjournment was sought on 04/05/2022 by S. Purohit & Associates, Chartered Accountants and the case was adjourned to 09/06/2022. Today (i.e. 09/06/2022) neither any application for adjournment is filed nor his representative has appeared on behalf of assessee, therefore, we left no option except to decide the appeal on the basis of submission of ld. Sr.DR of the Revenue and the material available on record. The ld. Sr. DR for the revenue submits that no return of income was filed under Section 139(1) or 139(4) of the Act. The case of assessee was reopened under Section 147 of the Act. Notice under Section 148 dated 31/3/2017 was duly ITA No. 145/Srt/2021 Suajkishan Deokishan Thanvi Vs ITO 5 served. Despite service of said notice, no return of income was filed by assessee. The assessee not attended the assessment proceedings despite service of several show cause notices. The assessee filed his return of income on 15/12/2017 and the assessment order was already passed on 26/10/2017. The return of income was treated as nonest. The assessee is claiming benefit of Chapter VIA without filing return of income. The ld. Sr. DR submits that the assessee is not entitled for any relief, as filing of return is mandatory for seeking deductions of chapter VIA of Income-tax Act. 6. We have considered the submission of ld. Sr. DR for the revenue and have gone through the material placed on record. There is no dispute that no return of income under either under section 139 or in response to notice under Section 148 of the Act was filed by the assessee. The assessee filed return of income after completion of assessment order. In the present appeal, the assessee has claimed deduction on LIC premium and interest on housing loan only. The assessee has not placed on record any document substantiating that he has paid insurance premium or interest on housing loan. Short question for our determination is whether the assessee can claim such benefit without filing return under Section 139 or under Section 148 of the Act. It is statutory requirement to file return of ITA No. 145/Srt/2021 Suajkishan Deokishan Thanvi Vs ITO 6 income for claiming benefits of Chapter VIA in time either prescribed under section 139 or in response to notice under section 148. The assessee failed to meet out the statutory compliance therefore, not eligible for such deduction, thus, we do not find any merit in the grounds of appeal raised by the assessee. 7. In the result, this appeal of the assessee is dismissed. Order pronounced in the open court on 09 th June, 2022 at the time of hearing and result was placed on the notice board. Sd/- Sd/- (Dr. ARJUN LAL SAINI) (PAWAN SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat, Dated: 09/06/2022 *Ranjan Copy to: 1. Assessee – 2. Revenue - 3. CIT(A) 4. CIT 5. DR 6. Guard File By order // True Copy // Sr.Private Secretary, ITAT, Surat