VENKATESAN RAVI, CHENNAI V. ACIT NON CORPORATE CIRCLE-7(1), CHENNAI

ITA 2388/CHNY/2019

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9192 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 23-08-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R ANITHA IRS
• Keywords: Search and seizure; Tax effect
• Section: 142(1); 143(2); 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] ./I.T.A. NO. 2388/CHNY/2019 ! / ASSESSMENT YEAR : 2011-2012. VENKATESAN RAVI, 14A, BALU NAGAR, MOGAPPAIR EAST, CHENNAI 600 037. [PAN ADWPR 8864L] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 7(1) CHENNAI. ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : NONE &' '# $ % /RESPONDENT BY : MS. R. ANITHA, IRS, JCIT. ( ) $ * /DATE OF HEARING : 18-12-2019 +,! $ * /DATE OF PRONOUNCEMENT : 19-12-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-4, CHENNAI (CIT(A) FOR SHORT ) DATED 27.10.2017 FOR THE ASSESSMENT YEA R 2014-2015. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APP EAL. 1. THE ORDER OF THE CIT (A) IS ERRONEOUS AS PER T HE LAW, AS WELL. ITA NO. 2388/2019 :- 2 -: 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE REOP ENING OF THE ASSESSMENT SINCE THE INGREDIENTS ARE NOT SATISFIED, : VIZ 2.1 ERRED REJECTING THE GROUND REGARDING THE REOPEN ING OF THE ASSESSMENT BASED ON MERE SUSPICION AND IN THE ABSEN CE OF CONCRETE AND RELIABLE INFORMATION. 2.2 REOPENING THE ASSESSMENT TO MAKE FISHING INQUIR IES AND HENCE A CONSEQUENTIAL ASSESSMENT ORDER IS ILLEGAL. 3. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ASSE SSMENT U/S. 147 WHILE THE APPROPRIATE PROCEEDINGS IN THE CASE O F INFORMATION THAT EMANATES FROM SEIZED RECORD OUGHT TO BE SEC.153C. 4 THE LEARNED CIT(A) ERRED IN CONFIRMING THE ASSESS MENT U/S. 147 R.W.S 144, WHEN THE APPELLANT HAS COMPLIED TO A LL TERMS OF NOTICE U/S 142(1) AND WITHOUT GRANTING OPPORTUNITY AS PER PROVISO TO SEC. 144. 5 THE ID. CIT (A) ERRED IN LAW AS WELL AS IN FACTS IN CONFIRMING THE ORDER OF ASSESSMENT U/S 24.12.2018 WITHOUT ISSU E OF THE STATUTORY NOTICE UNDER SECTION 143(2) OF THE INCOME TAX ACT, 1961 AND AS SUCH HIS REASSESSMENT ORDER IS NOT GOOD IN LAW AND VOID ABINITIO. 6 THE ID. CIT (A) ERRED IN CONFIRMING THE ORDER OF ASSESSMENT U/S 148 OF THE ACT PASSED BY THE ASSESSING OFFICER WITHOUT FURNISHING THE REASON FOR THE ESCAPEMENT OF THE INC OME AND REOPENING OF THE ASSESSMENT. 7. FOR THOSE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, THE HONBLE ITAT MAY BE PLEASED TO CANCEL THE ASSESSMENT AND THUS, RENDER JUSTICE. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE ASSESSEE IN AN INDIVIDUAL DERIVING INCOME FRO M THE PROFESSION AS DOCTOR. THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-12 WAS FILED ON 21.12.2018. DISCLOSING TOTAL INCOME OF RS.37,63,640/-. AGAINST THE SAID RETURN OF INCOME , THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT. SUBSEQUENTLY, CONSEQUENT TO ITA NO. 2388/2019 :- 3 -: THE SEARCH AND SEIZURE OPERATIONS CONDUCTED IN THE CASE OF M/S. APOLLO HOSPITAL ENTERPRISE LTD, THE ASSESSING OFFIC ER CAME TO KNOW THAT ASSESSEE HAD NOT ADMITTED CONSULTATION FEES COLLEC TED FROM M/S. APOLLO HOSPITAL ENTERPRISE LTD AND THEREFORE HE FOR MED AN OPINION THAT INCOME ESCAPED ASSESSMENT. ACCORDINGLY, NOTICE U/S .148 OF THE ACT DATED 24.03.2018 WAS ISSUED. IN RESPONSE TO WHICH, THE ASSESSEE FILED RETURN OF INCOME ON 21.12.2018 DECLARING THE SAME AS ORIGINAL RETURN OF INCOME. AGAINST THE SAID RETURN OF INCOME, THE A SSESSMENT WAS COMPLETED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 7(1) CHENNAI (HEREINAFTER CALLED AO) VIDE ORDER DATED 24.12.2018 PASSED U/S.144 R.W.S. 147 OF THE ACT AFTER MAKING ADDITION OF RS.10,85,500/- ON ACCOUNT OF SUPPRESSED PROFESSIONAL RECEIPT FROM M/S. APOLLO HOSPITAL ENTERPRISE LTD. 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A) CHALLENGING THE VALIDITY OF REASSESSMENT AS WELL A S THE ADDITION ON MERITS. THE LD. COMMISSIONER OF INCOME TAX (APPEAL S) WHILE UPHOLDING THE VALIDITY OF REOPENING HAD DELETED THE ADDITION ON MERITS ON THE GROUND THAT ADDITION MADE ON THE STATEMENT GIVEN BY ONE MS. SUBHADRA CANNOT BE RELIED UPON IN THE ABSENCES OF CROSS EXAMINATION AS WELL AS MS. SUBHADRA WAS NOT INCHARGE OF OPD APP OINTMENTS. ITA NO. 2388/2019 :- 4 -: 5. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFO RE US IN THE PRESENT APPEAL CHALLENGING THE VALIDITY OF VERY RE OPENING. ON THE DATE OF HEARING, NONE APPEARED ON BEHALF OF THE ASS ESSEE. 6. ON THE OTHER HAND, LD. SR. DEPARTMENTAL REPRESE NTATIVE HAS SUBMITTED THAT ADDITION WAS DELETED BY THE LD. CO MMISSIONER OF INCOME TAX (APPEALS) AND FURTHER, THE DEPARTMENT HA D NOT FILED AN APPEAL BEFORE THE TRIBUNAL DUE TO LOW TAX EFFECT . 7. HAVING HEARD THE LD. SR. DEPARTMENTAL REPRESENTA TIVE, WE ARE OF THE CONSIDERED OPINION THAT THE PRESENT APPEAL FILE D BY THE ASSESSEE HAS BECOME ACADEMIC IN VIEW OF THE FACT THAT ASSESS EE HAS NO GRIEVANCE. THUS, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED ON 19TH DAY OF DECEMBER, 2019, A T CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED:19TH DECEMBER, 2019. KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF