Afroze Ahamed, CHENNAI V. ITO NCW 4(1), CHENNAI

ITA 2679/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1842 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 18-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABIJIT RAKSHIT
• Assessee Lawyers: R. PADMANABHAN
• Keywords: Opportunity of being heard; Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , ! . , ! ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2679/CHNY/2018 /ASSESSMENT YEAR: 2015-16 SHRI AFROZE AHAMED, PROP. M/S.ASIA INTERNATIONAL, NO.135, VEPERY HIGH ROAD, PERIAMET, CHENNAI-600 013. [PAN: AACPA 9610 N] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD-4(1), CHENNAI. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR.R.PADMANABHAN, CA *+) , /RESPONDENT BY : MR.ABIJIT RAKSHIT, JCIT , /DATE OF HEARING : 17.06.2019 , /DATE OF PRONOUNCEMENT : 17.06.2019 / 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)-5, CHENNAI, IN ITA NO.160/CIT(A)- 5/2017-18 DATED 24.07.2018 FOR THE AY 2015-16. 2. SHRI ABIJIT RAKSHIT, JCIT, REPRESENTED ON BEHALF OF THE REVENUE AND SHRI R.PADMANABHAN, CA, REPRESENTED ON BEHALF OF TH E ASSESSEE. ITA NO.2679/CHNY/2018 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS IN THE BUSINESS OF TRADING OF WET BLUE AND FINIS HED LEATHER. IT WAS A SUBMISSION THAT ORIGINALLY WHEN THE RETURN WAS FILE D BY THE ASSESSEE, BY MISTAKE, THE ASSESSEE HAD NOT INCLUDED THE TRANSACT ION IN RESPECT OF IMPORT PURCHASES MADE THROUGH CANARA BANK, KELLYS B RANCH, CHENNAI-7. IT WAS A SUBMISSION THAT THE ORIGINAL RETURN WAS FI LED ON 18.06.2016 FOR THE AY 2015-16. THE ASSESSEE HAD FILED AN ANOTHER RETURN ON 14.12.2017 AFTER THE RECEIPT OF THE NOTICE U/S.142(1), WHEREIN , HE INCLUDED THE TRANSACTION MADE THROUGH CANARA BANK, KELLYS BRANCH , CHENNAI. IT WAS A SUBMISSION THAT AS PER THE RETURN FILED ON 14.12.20 17, THERE WAS A NET LOSS WHICH HAS NOT BEEN CONSIDERED BY THE AO. IT W AS A SUBMISSION THAT THE AO HAD ESTIMATED THE INCOME OF THE ASSESSEE AT 15% OF THE REVISED GROSS TURN OVER. IT WAS A SUBMISSION THAT THE ISSU ES MAY BE RESTORED TO THE FILE OF THE AO SO THAT THE ASSESSEE WOULD BE AB LE TO EXPLAIN HIS CLAIMS IN THE RETURNS. 4. IN REPLY,THE LD.DR VEHEMENTLY SUPPORTED THE ORDE R OF THE AO AND THE LD.CIT(A). IT WAS A SUBMISSION THAT THE ASSESS EE HAS NOT BEEN ABLE TO SUBSTANTIATE HIS RETURN FILED ON 14.12.2017. IT WA S A FURTHER SUBMISSION THAT THE RETURN FILED ON 14.12.2017 WAS AN INVALID RETURN. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ITA NO.2679/CHNY/2018 :- 3 -: 6. ADMITTEDLY, THE RETURN ORIGINALLY FILED ON 18.02 .2016 IS A BELATED RETURN. THE RETURN FILED ON 14.12.2017 OBVIOUSLY C ANNOT BE CONSIDERED AS A REVISED RETURN. HOWEVER, A PERUSAL OF THE ASSESS MENT ORDER CLEARLY SHOWS THAT THE AO HAS NOT REJECTED THE SAID RETURN BUT HAS TAKEN THE DETAILS FROM THE SAID RETURN FOR THE PURPOSE OF EST IMATING THE ASSESSEES INCOME. HAVING TAKEN THE TURNOVER FROM THE RETURN F ILED ON 14.12.2017, WHY THE AO HAS NOT ACCEPTED THE CLAIM OF EXPENSES I S NOT COMING OUT OF THE ASSESSMENT ORDER. THIS BEING SO, THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE AO FOR RE-ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 17 TH DAY OF JUNE, 2019, IN CHENNAI. SD/- SD/- ( . ) ( S. JAYARAMAN ) ! /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) ! /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 17 TH JUNE, 2019. TLN , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. /GF