R.R.Associates, CHENNAI V. ITO, Salem

ITA 65/CHNY/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5871 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 13-01-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN JCIT D R
• Assessee Lawyers: A S SRIRAMAN

Judgement Text

, A/ SMC , IN THE INCOME TAX APPELLATE TRIBUNAL A/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER I.T.A.NO.65 /MDS./2016 ( ASSESSMENT YEAR : 2006-07 ) M/S.R.R.ASSOCIATES , 5/263,KAMARAJ NAGAR, VADACHENNIMALAI(P.O), ATTUR 636 121. VS. THE INCOME TAX OFFICER, WARD II(3), SALEM. PAN AAHER 3257 R ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MR.A.S.SRIRAMAN,ADVOCATE / RESPONDENT BY : MR.B.SAGADEVAN, JCIT, D.R ! ' / DATE OF HEARING : 09.11.2017 #$%& ! ' /DATE OF PRONOUNCEMENT : 09.11.2017 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A), SALEM D ATED 24.09.2014 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS THAT LD .CIT(A) ERRED IN CONFIRMING THE ASSESSMENT OF INCOME AT 5% OF GROSS CONTRACT ITA NO.65 /MDS/2016 2 RECEIPTS , THOUGH THE EXPARTE ASSESSMENT ORDER WAS PASSED U/S.144 OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE FILED ITS RETURN OF INCOME U/S.139(1) OF THE ACT ON 31.01.2014 DECLA RING THE INCOME OF ` 1,41,010/- FOR ASSESSMENT YEAR 2006-07. NOTICE U/S .143(2) WAS ISSUED ON 11.10.2007. NONE APPEARED FOR THE ASSESSE E. LATER, THE LD. ASSESSING OFFICER ISSUED NOTICE CALLING THE APP EARANCE OF THE ASSESSEE ON SEVERAL DATES, NONE APPEARED FOR THE AS SESSEE. THE LD. ASSESSING OFFICER HAVING NO OPTION SINCE THE ASSESS MENT WAS GETTING TIME BARRED, ESTIMATED THE INCOME OF ASSESSEE @ 5% OF THE GROSS RECEIPT IN THE ABSENCE OF ANY BOOKS OF ACCOUNTS, V OUCHERS, BILLS ETC. THE LD. ASSESSING OFFICER HAS NOT GIVEN THE DEDUCTI ON TOWARDS INTEREST ON CAPITAL AND SALARY TO PARTNERS AND WORK ED OUT THE TAXABLE INCOME AT ` 10,42,040/-. AGGRIEVED BY THE ORDER OF LD. ASSESSIN G OFFICER, THE ASSESSEE CARRIED THE APPEAL BEFORE THE LD.CIT(A). THE CASE WAS POSTED FOR HEARING BY THE LD.CIT(A) ON 20 .04.2012, 18.10.2012, 18.09.2013, 17.12.2013, 22.04.2014, 15. 07.2014 AND FINALLY ON 18.09.2014. NONE APPEARED ON BEHALF OF T HE ASSESSEE. THE LD.CIT(A) CONFIRMED THE ORDER OF LD. ASSESSING OFFI CER OBSERVING THAT ITA NO.65 /MDS/2016 3 THE APPEAL IS DISMISSED FOR NON-PROSECUTION. AGAINS T THE ORDER OF LD.CIT(A), NOW THE ASSESSEE IS IN APPEAL BEFORE U S. 5. AT THE OUTSET, IT IS NOTICED THAT ASSESSEES AP PEAL HAS BEEN FILED LATE BY 17 DAYS. CONDONATION PETITION HAS BEEN FIL ED STATING THAT THE APPEAL PAPERS HANDED OVER TO C.A FOR FILING THE APP EAL BEFORE THIS TRIBUNAL. SINCE THE LD.A.R, MR.ILLANGOVAN, C.A FEL L IN SICK IN THE MONTH OF OCTOBER,2014, THUS, THERE WAS A SHORT DELA Y OF 17 DAYS IN FILING THIS APPEAL. THIS FACT IS ALSO CONFIRMED BY MR.ILLANGOVAN AND MR.SIVAKUMAR, C.AS BY WAY OF HIS LETTER DATED 7.11. 2017, WHERE REASONS SHOWN ARE JUSTIFIED AND HENCE, DELAY IS CON DONED AND APPEAL ADMITTED FOR ADJUDICATION. 6. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL ON RECORD. COMING TO THE EXPARTE ORDER PASSED BY THE L OWER AUTHORITIES, IT WAS STATED BY THE LD.A.R THAT THE ASSESSEE HAD FAILED TO APPEAR BEFORE THE LOWER AUTHORITIES ON THE REASON OF MEDIC AL URGENCY OF ONE OF THE PARTNERS AND MADE AN UNDERTAKING BEFORE THE BENCH THAT IF ONE MORE OPPORTUNITY GIVEN TO ASSESSEE TO PRESENT THE C ASE BEFORE THE LD. ASSESSING OFFICER, THE ASSESSEE FIRM WOULD CO-OPERA TE WITH THE AO AND COMPLETE THE ASSESSMENT SINCE THE ASSESSMENT ORDER AS WELL ITA NO.65 /MDS/2016 4 AS ORDER OF THE CIT(APPEALS) IS PASSED EXPARTE ORD ER. IN MY OPINION, IN THE INTEREST OF JUSTICE, IT IS APPROPRIATE TO RE MIT THE ISSUE TO THE FILE OF LD. ASSESSING OFFICER TO COMPLETE THE ASSESSMENT AS PER THE BOOKS OF ACCOUNTS TO BE PRODUCED BY THE ASSESSEE. I ALSO DIRECT THE ASSESSEE TO PRODUCE RELEVANT BOOKS OF ACCOUNTS BEFO RE THE LD. ASSESSING OFFICER AND TO CO-OPERATE WITH THE AO SO AS TO COMPLETE THE ASSESSMENT . WITH THIS OBSERVATION, I REMIT TH IS ISSUE TO THE FILE OF LD. ASSESSING OFFICER FOR FRESH CONSIDERATION. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTL Y ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 09 TH NOVEMBER, 2017. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 09 TH NOVEMBER, 2017 . K S SUNDARAM. ' ( )!*+ ,+%! / COPY TO: 1 . / APPELLANT 3. ' ' -! () / CIT(A) 5. +0 1 )!)23 / DR 2. / RESPONDENT 4. ' ' -! / CIT 6. 1 45 6 / GF