R.NAMACHIVAYAM, ERODE V. ITO WARD 1(10, ERODE

ITA 3149/CHNY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 4419 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 19-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reopening of assessment; Set aside
• Section: 143(3); 142(1); 143(1); 69; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.3149/CHNY/2018 ( )( / ASSESSMENT YEAR : 2009-10 SHRI R. NAMACHIVAYAM, 55, RAMASAMY LANE, ERODE 638 001. PAN : ACNPN 0964 F V. THE INCOME TAX OFFICER, WARD 1(1), ERODE. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : NONE -.+, / 0 / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT 1 / 2$ / DATE OF HEARING : 25.02.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 21.03.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBATORE, DATED 24.09.2018 AND PERTAINS TO ASSESSMENT YEAR 2009-10. 2. NO ONE APPEARED FOR THE ASSESSEE EVEN THOUGH NOT ICE OF HEARING WAS SERVED ON THE ASSESSEE BY RPAD. THE REGISTRY H AS PLACED ON RECORD THE POSTAL ACKNOWLEDGEMENT AS PROOF OF SERVI CE OF NOTICE ON THE ASSESSEE. INSPITE OF RECEIPT OF NOTICE BY RPAD, TH E ASSESSEE DID NOT 2 I.T.A. NO.3149/CHNY/18 APPEAR WHEN THE APPEAL WAS TAKEN UP FOR HEARING. T HEREFORE, WE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PROCEEDED T O DISPOSE THE APPEAL ON MERIT. 3. SHRI AR.V. SREENIVASAN, THE LD. D.R. SUBMITTED T HAT THE ASSESSEE PURCHASED LAND JOINTLY WITH FIVE OTHER PERSONS FOR A TOTAL CONSIDERATION OF 53,53,000/-. ACCORDING TO THE LD. D.R., THE ASSESS EES ACTUAL INVESTMENT WAS 1/6 TH OF THE TOTAL COST WHICH COMES TO 9,79,567/-. HOWEVER, THE ASSESSEE HAS DISCLOSED ONLY 3,52,644/- IN THE RETURN OF INCOME FILED IN THE REGULAR COURSE. THEREFORE, ACC ORDING TO THE LD. D.R., THE ASSESSING OFFICER FOUND THAT THERE WAS REASON T O BELIEVE THAT THE INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT. HENCE, A NOTICE WAS ISSUED UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT') ON 30.03.2016. SINCE THE ASSESSEE HAS NOT RE SPONDED TO THE NOTICE ISSUED UNDER SECTION 148 OF THE ACT, ACCORDING TO T HE LD. D.R., A NOTICE UNDER SECTION 142(1) OF THE ACT WAS ISSUED. SUBSEQ UENTLY, THE ASSESSEE FILED RETURN OF INCOME ON 08.12.2016 IN RESPONSE TO THE NOTICE UNDER SECTION 148 OF THE ACT. SINCE THE INVESTMENT TO TH E EXTENT OF 6,26,923/- WAS NOT DISCLOSED IN THE RETURN OF INCOME AND IN TH E BOOKS OF ACCOUNT, ACCORDING TO THE LD. D.R., THE ASSESSING OFFICER FO UND THAT THERE WAS UNDISCLOSED INVESTMENT UNDER SECTION 69 OF THE ACT. ACCORDINGLY, THE SAME WAS BROUGHT TO TAXATION. 3 I.T.A. NO.3149/CHNY/18 4. WE HEARD THE LD. D.R. AND PERUSED THE RELEVANT M ATERIAL AVAILABLE ON RECORD. THE ASSESSMENT YEAR UNDER CONS IDERATION IS 2009- 10. THE NOTICE UNDER SECTION 148 OF THE ACT WAS IN ITIALLY ISSUED ON 23.03.2016. EVEN THOUGH THE ASSESSEE HAD NOT FILED RETURN OF INCOME IN RESPONSE TO THE NOTICE ISSUED UNDER SECTION 148 OF THE ACT, FINALLY THE RETURN WAS FILED ON 08.12.2016. IT IS NOT KNOWN WH ETHER THE RETURN, IF ANY, WAS FILED BY THE ASSESSEE BEFORE ISSUING NOTICE UND ER SECTION 148 OF THE ACT AND WHETHER IT WAS PROCESSED UNDER SECTION 143( 1) OF THE ACT OR ANY ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E ACT. THESE FACTS ARE NOT BROUGHT ON RECORD EITHER BY THE ASSESSING O FFICER OR BY THE CIT(APPEALS). 5. THE ASSESSEE HAS RAISED GROUND ONLY WITH REGARD TO REOPENING OF ASSESSMENT UNDER SECTION 148 OF THE ACT. SINCE FUL L DETAILS OF THE RETURN FILED ORIGINALLY WERE NOT AVAILABLE ON RECORD, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ISSUE OF REOPENING HAS TO BE RE-EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL BRING ON RECO RD THE DATE OF FILING OF RETURN, IF ANY, BEFORE THE ISSUE OF NOTICE UNDER SE CTION 148 OF THE ACT AND WHETHER SUCH A RETURN WAS SELECTED FOR SCRUTINY OR IT WAS PROCESSED UNDER SECTION 143(1) OF THE ACT AND THEREAFTER DECI DE THE ISSUE AFRESH IN 4 I.T.A. NO.3149/CHNY/18 ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPO RTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 21 ST MARCH, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 21 ST MARCH, 2019. KRI. / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-3, COIMBATORE 4. PRINCIPAL CIT-2, COIMBATORE 5. 8; -2 /DR 6. <( = /GF.