ESTATE OF LATE A.M. FATIMA BIWI, RAJAPALAYAM V. ITO, WARD-1, VIRUDHUNAGAR

ITA 2889/CHNY/2019

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9976 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-10-2022
• Assessment Year: misc
• Appeal Filed On: 14-10-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 147; 69; 148; 144; 142(1); 143(2)

Judgement Text

आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member आयकर अपील सं./I.T.A. No.2888/Chny/2019 िनधाŊरण वषŊ/Assessment Year: 1987-88 Sri A.M. Abdul Basheer Rahman, 200, Seethakathi Street, Rajapalayam 626 117. [PAN:AMKPA0160F] Vs. The Income Tax Officer, Ward 1, Virudhunagar. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) आयकर अपील सं./I.T.A. No.2889/Chny/2019 िनधाŊरण वषŊ/Assessment Year: 1987-88 Estate of Late A.M. Fathima Beevi, L/H Sri A.M. Abdul Basheer Rahman, 200, Seethakathi Street, Rajapalayam 626 117. [PAN: AAOPF4171F] Vs. The Income Tax Officer, Ward 1, Virudhunagar. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri Varuvooru Sreedhar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 19.10.2022 घोषणा की तारीख /Date of Pronouncement : 21.10.2022 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: The appeals filed by different assessees are directed against the order of the ld. Commissioner of Income Tax (Appeals) 1, Madurai dated 27.08.2019 relevant to the assessment year 1987-88. I.T.A. Nos.2888 & 2889/Chny/19 2 2. Brief facts of the case are that the assessee, Sri Abdul Basheer Rahman, was one of the partners in M/s. Meeran Traders during the assessment year 1987-88. He had contributed ₹.6 lakhs as capital to M/s. Meeran Traders during the assessment year 1987-88. Further, the Assessing Officer noted that as per the revision order dated 08.03.2006 in the case of M/s. Meeran Traders, the total assessed income of M/s. Meeran Traders is ₹.2,53,870/- and the assessee’s share of income assessable in his hands is ₹.89,270/-. Hence, the Assessing Officer reopened the assessment under section 147 of the Income Tax Act, 1961 [“Act” in short] and issued notice under section 148 of the Act on 25.05.2007. As no return of income was filed in response to the notice under section 148 of the Act, notice under section 142(1) of the Act was issued to the assessee on 13.11.2007. In response, the assessee by letter dated 26.11.2007 had acknowledged the receipt of the notices under sections 148 and 142(1) and stated that his shop at Munaar town at Kerala was gutted by fire and that all the belongings were destroyed including stock, books of accounts, etc. and prayed for dropping the proceedings initiated for reopening of assessment. Subsequently, the assessee filed return of income for the assessment year 1987-88 on 04.12.2008 admitting a total income of I.T.A. Nos.2888 & 2889/Chny/19 3 ₹.19,641/- Subsequently, notice under section 143(2) of the Act was issued to the assessee on 04.12.2008. Against the request of the assessee, the Assessing Officer furnished reasons for reopening of assessment. Thereafter, the assessee was show-caused as to why the assessment should not be completed in the assessee’s case treating the capital contribution of ₹.6 lakhs in the firm M/s. Meeran Traders and the share of income of ₹.89,270/- as his income. Since there was no response from the assessee, the Assessing Officer has completed the assessment under section 144 r.w.s. 147 of the Act dated 22.12.2008 assessing the total income of the assessee at ₹.7,08,9210/-. 3. Similarly, in the case of the assessee Late A.M. Fathima Beevi, the Assessing Officer has completed the assessment under section 144 r.w.s. 147 of the Act dated 22.12.2008 assessing the total income of the assessee at ₹.15,94,058/- 4. On appeal by both the assessees, the ld. CIT(A) confirmed the assessment order passed by the Assessing Officer. 5. On being aggrieved, the assessees are in appeal before the I.T.A. Nos.2888 & 2889/Chny/19 4 Tribunal. None appeared on behalf of the assessees or any adjournment petition filed on behalf of the assessees. Both the appeals were initially posted for hearing on 09.01.2020. Since none appeared, the hearing was adjourned to 02.04.2020. When the appeals were taken up for hearing on 11.02.2021, none appeared on behalf of the assessee. Thereafter, the hearing was adjourned to 03.02.2022, 20.04.2022, 04.07.2022, 14.09.2022, 18.10.2022 and 19.10.2022. Hence, we proceed to decide the appeal after hearing the ld. DR. 6. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. Against the addition made under section 69 of the Act as well as reopening of assessment under section 147 of the Act, both the assessees preferred further appeal before the ld. CIT(A) and the assessee Sri A.M. Abdul Basheer Rahman appeared before the ld. CIT(A) in both the cases. After considering the submissions, the ld. CIT(A) upheld the reopening of the assessment as valid in the eyes of law. After considering the materials available on record with regard to the addition made under section 69 of the Act as well as charging of interest under section 139(8) & 217 of the Act in both the cases, the ld. I.T.A. Nos.2888 & 2889/Chny/19 5 CIT(A) has upheld the order passed by the Assessing Officer and dismissed the appeals filed by the assessees. We have carefully gone through the orders of the ld. CIT(A) in both the cases and find no infirmity in the order passed by the ld. CIT(A). Accordingly, the grounds raised by the assessees are dismissed. 7. In the result, both the appeals filed by the assessee are dismissed. Order pronounced on 21 st October, 2022 at Chennai. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 21.10.2022 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.