ARIHANT GOTHI, CHENNAI V. ACIT NON CORPORATE CIRCLE-4(1), CHENNAI

ITA 323/CHNY/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7478 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 29-07-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 11-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Reopening of assessment; Opportunity of being heard; Set aside
• Section: 147; 68; 148; 143(3); 250

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NOS. 322 & 323/CHNY/2020 / ASSESSMENT YEARS :2011-12 & 2016-17 SHRI ARIHANT GOTHI, NO. 44, KALATHI PILLAI STREET, SOWCARPET, CHENNAI 600 079. [PAN:AHGPG3532N] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 4(1), CHENNAI 600 006. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS. T.V. MUTHU ABIRAMI, ADVOCATE / RESPONDENT BY : SHRI G. JOHNSON, ADDL. CIT / DATE OF HEARING : 29.07.2021 /DATE OF PRONOUNCEMENT : 30.08.2021 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: BOTH THE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST DIFFERENT ORDERS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 5, CHENNAI, BOTH DATED 23.12.2019 RELEVANT TO THE ASSESSMENT YEARS 2011-12 AND 2016-17. BESIDES CHALLENGING THE CONFIRMATION OF VARIOUS ADDITIONS, THE ASSESSEE HAS MAINLY CHALLENGED THE EX-PARTE ORDER PASSED BY THE LD. CIT(A) BY RAISING SPECIFIC GROUND FOR BOTH THE ASSESSMENT YEARS. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-12 ON 25.07.2011 DECLARING TOTAL INCOME OF .5,78,130/- AS WELL AS AGRICULTURAL INCOME OF .71,500/-. SINCE THE ASSESSEE PURCHASED I.T.A. NOS. 322 & 323/CHNY/2020 2 IMMOVABLE PROPERTY FOR A CONSIDERATION OF .1,18,63,500/-, 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. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AGAINST STATUTORY NOTICES AND MATERIALS AVAILABLE ON RECORD, THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 147 OF THE ACT WAS COMPLETED BY ASSESSING TOTAL INCOME OF THE ASSESSEE AT .2,54,03,830/- AFTER MAKING VARIOUS ADDITIONS. 2.1 THE ASSESSMENT FOR THE ASSESSMENT YEAR 2016-17 WAS COMPLETED UNDER SECTION 143(3) OF THE ACT BY ASSESSING TOTAL INCOME OF THE ASSESSEE AT .96,65,657/- AGAINST RETURNED INCOME OF .65,39,837/- AFTER MAKING ADDITION UNDER SECTION 68 OF THE ACT. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) FOR BOTH THE ASSESSMENT YEARS. DESPITE ISSUANCE OF NOTICE UNDER SECTION 250 OF THE ACT FOR THE ASSESSMENT YEAR 2011-12, THERE WAS NO COMPLIANCE FROM THE ASSESSEE EITHER IN THE FORM OF PERSONAL ATTENDANCE OR IN THE FORM OF WRITTEN SUBMISSIONS BESIDES SEEKING ADJOURNMENT ON 04.12.2019 & 18.12.2019, WHICH WERE GRANTED TO THE ASSESSEE. SIMILARLY, FOR THE ASSESSMENT YEAR 2016-17 ALSO, THE ASSESSEE HAS NOT TURNED UP TO REPRESENT HIS CASE BEFORE THE LD. CIT(A). THEREFORE, AFTER CONSIDERING THE ASSESSMENT ORDER, THE LD. CIT(A) CONCLUDED THE APPELLATE ORDER BY CONFIRMING THE ADDITIONS MADE IN BOTH THE ASSESSMENT YEARS. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT BEFORE THE FIRST APPELLATE AUTHORITY, THE I.T.A. NOS. 322 & 323/CHNY/2020 3 ASSESSEE HAS RAISED A LEGAL ISSUE IN THE ASSESSMENT YEAR 2011-12 RELATING TO VALIDITY OF REOPENING OF ASSESSMENT UNDER SECTION 147 OF THE ACT AFTER EXPIRY OF FOUR YEARS. DESPITE REPRODUCING THE LEGAL GROUNDS OF APPEAL RAISED BY THE ASSESSEE, THE LD. CIT(A) HAS NOT CONSIDERED THE LEGAL GROUND IN RIGHT PERSPECTIVE AND DECIDED THE ISSUE BY SIMPLY CONFIRMING THE ASSESSMENT ORDER. THUS, THE LD. COUNSEL FOR THE ASSESSEE PRAYED FOR SUITABLE DIRECTIONS TO CONSIDER THE LEGAL ISSUE AS WELL AS OTHER GROUNDS ON MERITS FOR THE ASSESSMENT YEAR 2011-12 AND ALSO FOR THE ASSESSMENT YEAR 2016-17 SINCE THE LD. CIT(A) PASSED EXPARTE ORDER BY AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE TO PRESENT HIS CASE BEFORE THE LD. CIT(A). 5. ON THE OTHER HAND, THE LD. DR SUBMITTED THAT DESPITE SUFFICIENT OPPORTUNITIES AFFORDED, THERE WAS NO REPRESENTATION FROM ASSESSEES SIDE AND STRONGLY SUPPORTED THE ORDER OF THE LD. CIT(A) FOR BOTH THE ASSESSMENT YEARS. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. WITH REGARD TO THE LEGAL ISSUE RAISED BY THE ASSESSEE IN THE ASSESSMENT YEAR 2011-12 RELATING TO REOPENING OF ASSESSMENT AFTER EXPIRY OF FOUR YEARS, PRIMA FACIE, WE FIND THAT THE LD. CIT(A) IS REQUIRED TO DISCUSS AND CONCLUDE THE LEGAL ISSUE ON MERITS IN ACCORDANCE WITH LAW. MOREOVER, THE DETAILS OF VARIOUS OPPORTUNITIES GIVEN TO THE ASSESSEE TO REPRESENT HIS CASE WERE NOT BROUGHT ON RECORD EXCEPTING GRANTING TO ADJOURNMENTS AND SIMPLY CONFIRMED THE ADDITIONS. FOR THE ASSESSMENT YEAR 2016-17 ALSO THE LD. CIT(A) HAS PASSED THE EXPARTE ORDER WITHOUT GIVING THE DETAILS OF VARIOUS OPPORTUNITIES AFFORDED TO THE ASSESSEE AND CONFIRMED THE ADDITION. ACCORDINGLY, WE I.T.A. NOS. 322 & 323/CHNY/2020 4 SET ASIDE THE APPELLATE ORDERS AND REMIT THE MATTER BACK TO THE FILE OF THE LD. CIT(A) TO ADJUDICATE THE LEGAL ISSUE FOR THE ASSESSMENT YEAR 2011-12 AND OTHER GROUNDS RAISED BY THE ASSESSEE ON MERITS FOR BOTH THE ASSESSMENT YEARS AFTER AFFORDING SUFFICIENT OPPORTUNITIES BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COOPERATE WITH THE DEPARTMENT BY FURNISHING ALL DETAILS AND EXPLANATIONS AS MAY BE REQUIRED BY THE LD. CIT(A) IN CONCLUDING THE APPELLATE ORDER FOR BOTH THE ASSESSMENT YEARS IN RIGHT PERSPECTIVE, OTHERWISE, THE APPELLATE ORDERS ALREADY PASSED STAND SUSTAINED. 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 30 TH AUGUST, 2021 IN CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 30.08.2021 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.