S.Krishnasamy, Erode V. CIT(A),NFAC, Delhi

ITA 423/CHNY/2021

AI Insights

The case involves appeals by Shri S. Krishnasamy against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the AO's actions in reopening the assessments for the years 2014-15 and 2015-16. The primary contention was the lack of a certified copy of the reasons recorded for reopening the assessments. Additionally, there were issues regarding the unexplained introduction of capital amounts of Rs.58,00,000 for 2014-15 and Rs.16,00,000 for 2015-16. The Tribunal noted that these issues had not been adequately addressed by the CIT(A) or the AO and decided to remand the matter back to the AO for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132693 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 31-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 25-10-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 40A(3); 143(3); 133A

Judgement Text

अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.: 422 & 423/CHNY/2021 िनधाᭅरण वषᭅ /Assessment Years: 2014-15 & 2015-16 Shri S. Krishnasamy, 887, K.N.K. Road, Sambalkadu, Erode – 638 003. PAN: AKDPK 1820H v. The Income Tax Officer, Ward 2(1), Erode (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 01.08.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 01.08.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: These appeals filed by the assessee are directed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide order Nos.ITBA/NFAC/S/250/2021-22/1035104748(1) & 1035104599(1) 2 I.T.A. Nos.422 & 423/Chny/2022 of even date 26.08.2021. The assessments were framed by the Income Tax Officer, Ward 2(1), Erode for the assessment years 2014-15 & 2015-16 u/s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide orders of even date 30.12.2019. 2. The first common issue in these two appeals of assessee is as regards to the order of CIT(A) confirming the action of the AO in reopening the assessments without supply of certified copy of reasons recorded. 3. We have heard ld. Senior DR and gone through the order of CIT(A). We noted that the assessee is supplied the reason and we confirm that issue but we noted that the CIT(A) in both the years, have not adjudicated the issue of reopening, how the amount of Rs.58,00,000/- escaped assessment on account of capital introduction in assessment year 2014-15 and another amount of Rs.16,00,000/- in assessment year 2015-16. We noted that the CIT(A) has not adjudicated this issue and even the objections were not considered by the AO while adjudicating the issue of reopening. Hence this was put to ld. Senior DR. 3 I.T.A. Nos.422 & 423/Chny/2022 4. The ld.Senior DR referred to the report of the AO dated 07.04.2023 wherein it is mentioned as follows:- Please refer to the email dated 30.06.2023 wherein certain details in respect or in Krishnasamy PAN: AKDPK1820H for A.Y. 2014-15 have been called for. In response, it is submitted that a sworn statement during the course of survey u/s 133A of Income Tax Act, 1961 has been recorded from shri S. Krishnasamy on 06.02.2018. In that statement, Shri S Krishnasamy had agreed to offer certain amounts in the hands of the firm M/s V.K Textile processers u/s 40A(3) and also agreed to offer certain amounts in the hands of Shri S Krishnasamy and his wife Smt. Lakshmi on account of capital contribution for the A.Ys. 2014-15 & 2015-16. However, Shri S Krishnasamy had filed a letter in this office on 31.03.2018 and retracted the statement given by him. However, during the course of assessment proceedings, additions were made on the disclosure made by him in the statement recorded during the course of survey and the assessments were completed. Copy of the assessment order(s) passed in the following cases are attached. 1) M/s V.K. Textile Processers A.Y. 2016-17 PAN :AALFV0640C A.Y. 2017-18 Shri S Krishnasamy A.Y. 2014-15 PAN: AKDPK1820H A.Y. 2015-16 Smt. Lakshmi A.Y. 2014-15 PAN: AAVPL8075B A.Y. 2015-16 In the case of M/s V.K. Textile Processors, Appellate order from the Hon'ble ITAT for the A.Y.2016-17 & 2017-18 has been received. The Hon'ble ITAT has set aside the issues in the appeal to the file of the Assessing Officer for further verification and to consider the issue de nova in accordance with the law. Copy of the Hon'ble ITAT order for the A.Y. 2016-17 & 2017-18 are attached. In the case of Smt. Lakshmi the assessee has preferred appeal before the CIT (A) and the same is pending. 4 I.T.A. Nos.422 & 423/Chny/2022 The ld.Senior DR stated that the assessee also requested vide letter dated 26.07.2023, either the matter be adjourned or the matter can be restored back to the file of the AO for allowing one more opportunity to decide the issue of reopening as well as on merits. In view of the above factual position, after considering the submissions of ld. Senior DR and going through the fact that neither CIT(A) nor AO has considered the issue of reopening, hence we remand this issue back to the file of the AO in both the years and direct the AO to first consider the issue of reopening raised by assessee. 5. As regards to merits of the assessee in assessment year 2014- 15, the issue of unexplained introduction of capital of Rs.58,00,000/- and in assessment year 2015-16 unexplained introduction of Rs.16,00,000/-, we noted that this issue in the case of M/s.V.K Textile Processers have already been remanded back to the file of the AO, as informed by ld.Senior DR during the course of hearing and that order was shown during the course of hearing before the Bench. The ld.Senior DR requested that this matter also be restored back to the file of the AO for deciding the introduction of capital in both the years. In term of the above, we restore this 5 I.T.A. Nos.422 & 423/Chny/2022 issue back to the file of the AO, who will allow the assessee to file evidences so that he can explain the introduction of capital on merits. In term of the above, these two appeals are set aside to the file of the AO and allowed for statistical purposes. 6. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 1 st August, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 1 st August, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.