VENKATARAMAN REDDY AAVULA, CHENNAI V. ITO NON CORPORATE WARD 10(5), CHENNAI

ITA 2031/CHNY/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 7413 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ी महावीर िसंह, उपा एवं ी डॉ एम एल मीना, लेखा सद के सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI Dr. M.L. MEENA, ACCOUNTANT MEMBE R आयकर अपील सं./ITA No.2031/Chny/2019 िनधा रण वष /Assessment Year: 2011-12 Shri Venkataraman Reddy Aavula, No.11/1, Hyper Garden, 4 th Street, Jamlia Nagar, Chennai-600 012. Vs. The Income Tax Officer, Non Corporate Ward-10(5), Chennai. [PAN: AERPV 9266Q] ( अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओर से/ Appellant by : Shri S. Sridhar, Advocate & Shri N. Arjunraj, C.A यथ क ओर से /Respondent by : Shri AR V Sreenivasan, Addl. CIT सुनवाई क तारीख/Date of Hearing : 07.03.2022 घोषणा क तारीख /Date of Pronouncement : 08.03.2022 आदेश / O R D E R Per Bench: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-12, Chennai, in ITA No.175/CIT(A)-12/18-19 dated 25.04.2019. The Assessment was framed by Income Tax Officer, Non Corporate Ward-10(5), Chennai for the relevant A.Y. 2011-12 vide order dated 26.12.2018 u/s. 144 r/w s. 147 of the Income Tax Act, 1961 (hereinafter ‘the Act’). ITA No.2031 /Chny/2019 (A.Y 2011-12) Shri Venkataraman Reddy Aavula :- 2 -: 2. At the outset, the ld. counsel for the assessee stated that the Assessing Officer (A.O) has framed reassessment exparte u/s. 144 of the Act and moreover reasons were not supplied to the assessee and completed the reassessment without adhering to the law declared by Hon’ble Supreme court in the case of GKN Driveshafts India Ltd. Vs. ITO (2003) 259 ITR 19 (SC). For this, the ld. counsel for the assessee drew our attention to ground No.2, which reads as under: “2. The CIT (Appeals) erred in sustaining the re-assessment completed under section 144 read with section 147 of the Act without adjudicating into the correctness of assuming jurisdiction for completing the said re-assessment and further erred in not adjudicating the correctness of completion of reassessment without adhering to the law declared by the Supreme Court in the case reported in 259 1TR 19 without assigning proper reasons and justification.” 3. The ld. counsel for the assessee took us through the assessment order and drew our attention that the assessment is exparte and framed assessment u/s. 144 r/w s. 147 of the Act. The ld. counsel for the assessee further stated that once reasons are not supplied and the procedure laid down by Hon’ble Supreme Court in the case of GKN Driveshafts India Ltd. Vs. ITO, supra, has not been followed, the matter has to go back to the file of A.O for following the procedure as prescribed by Hon’ble Supreme Court in the case of GKN Driveshafts India Ltd. Vs. ITO, supra. ITA No.2031 /Chny/2019 (A.Y 2011-12) Shri Venkataraman Reddy Aavula :- 3 -: 4. On the other hand, the Ld. Sr. D.R has not objected. After hearing both the sides and going through the facts of the case, we set aside the orders of the lower authorities and remand the matter back to the file of A.O and direct the A.O to follow the procedure prescribed by Hon’ble Supreme Court in the case of GKN Driveshafts India Ltd. Vs. ITO, supra. We direct accordingly. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 08 th day of March, 2022 in Chennai. Sd/- Sd/- (डॉ एम एल मीना) (Dr. M.L. Meena) लेखा सद /Accountant Member (महावीर िसंह) (MAHAVIR SINGH) उपा() /VICE PRESIDENT चे ई/Chennai, दनांक/Dated: 08 th March, 2022. EDN/- आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF