P C Udayakumar, Chennai V. ITO, Ward 2(i/c), Chennai

ITA 653/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3490 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 14-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AR V SREENIVASANJCITD R
• Assessee Lawyers: R SRIDEVIC A
• Keywords: Business income; Principle of natural justice
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & S HRI S.JAYARAMAN , ACCOUNTANT MEMBER ./ I.T.A.NO.653/CHNY/2019 / ASSESSMENT YEAR :2012-13 SHRI P.C.UDAYAKUMAR , 16,LAKSHMI NAGAR, NEAR MODERN SCHOOL, THIRUNINRAVUR, THIRUVALLUR DISTRICT 602 024. VS. INCOME TAX OFFICER, WARD 2(I/C) TIRUVALLUR,96 MM AVENUE, KANCHEEPURAM 631 501. [PAN ABLPU 8889 K ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : SMT.R.SRIDEVI,C.A !' /RESPONDENT BY : SHRI AR .V.SREENIVASAN,JCIT,D.R & / DATE OF HEARING : 11 - 11 - 201 9 & / DATE OF PRONOUNCEMENT : 11 - 11 - 201 9 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-7, CHENNAI IN ITA NO.87/C.I.T(A)-7/2015-16 DATED 31.01.2018 FOR THE ASSESSMENT YEAR 2012-13. ITA NO.653/CHNY/2019 :- 2 -: 2. SMT R.SRIDEVI REPRESENTED ON BEHALF OF THE ASSESSEE, AND SHRI AR.V.SREENIVASAN REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY LD.A.R THAT THE APPEAL OF AS SESSEE IS DELAYED BY 318 DAYS FOR WHICH THE ASSESSEE HAS FILE D THE NECESSARY AFFIDAVIT FOR CONDONATION OF DELAY. THE GROUND RAIS ED IS THAT THE ASSESSEE HAD MET WITH TWO WHEELER ACCIDENT, AND CON SEQUENT TO ACCIDENT, HE HAD TO UNDERGO SUBSTANTIAL MEDICAL TRE ATMENT, WHICH HAD ALSO RESULTED IN THE BUSINESS OF ASSESSEE BEING AFF ECTED AND OTHER RELATED FAMILY PROBLEMS RISING. THIS HAS CONSEQUENT LY DELAYED IN FILING OF THE APPEAL. THE REASONS GIVEN BY THE ASSESSEE IS PLAUSIBLE AND HAS NOT BEEN FOUND TO BE FALSE. THEREFORE, THE DELAY IN FILING OF THE APPEAL IS CONDONED AND THE APPEAL IS DISPOSED OFF ON MERIT S. 4. IT WAS SUBMITTED BY LD.AR THAT THE ASSESSMENT H AS BEEN COMPLETED EXPARTE. IT WAS SUBMITTED THAT THE ASSESS ING OFFICER HAS TREATED THE ENTIRE RECEIPTS OF ASSESSEE AS INCOME FROM OTHER SOURCES AND HAS NOT ALLOWED THE ASSESSEES CLAIM OF EXPENSE S. IT WAS SUBMITTED THAT THE RETURN WAS FILED ON 04.08.2013 A ND THE FIRST NOTICE WAS ISSUED ON 05.09.2014. IT WAS SUBMITTED THAT SO ME DETAILS HAVE BEEN CALLED FOR, WHICH HAD NOT BEEN FILED BY THE AS SESSEE. IT WAS ITA NO.653/CHNY/2019 :- 3 -: SUBMITTED THAT THE ASSESSEE HAD ERRONEOUSLY FILED T HE RETURN IN ITR-2 INSTEAD OF ITR-4. IT WAS SUBMITTED THAT THE ASSESSE E MAY BE GRANTED ANOTHER OPPORTUNITY TO SUBSTANTIATE HIS RETURN BEFO RE THE ASSESSING OFFICER. 5. IN REPLY, THE LD.DR SUPPORTED THE ORDERS OF AUT HORITIES BELOW. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACT OF FILING RE TURN UNDER ITR-2 AS AGAINST ITR-4 IS ONLY A TECHNICAL DEFECT. IF THE AS SESSEE HAS EARNED BUSINESS INCOME, ASSESSEES INCOME IS LIABLE TO BE ASSESSED AS BUSINESS INCOME. A PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE ASSESSING OFFICER HAS ASSESSED THE INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES . EVEN IF THE INCOME IS TO BE ASSESSED UNDER THE HE AD INCOME FROM OTHER SOURCES , THE EXPENSES INCURRED BY THE ASSESSEE FOR THE PURPOSE OF EARNING SUCH INCOME IS AN ALLOWABLE DEDUCTION. THIS HAS NOT BEEN DISCUSSED BY THE ASSESSING OFFICER. A DMITTEDLY, THE ASSESSING OFFICER ALSO CANNOT BE FOUND FAULT WITH, AS THE ASSESSING OFFICER HAD GRANTED THE SUBSTANTIAL OPPORTUNITY TO THE ASSESSEE, AND THE DETAILS HAVE NOT BEEN PRODUCED BY THE ASSESSEE. THIS BEING SO, IN THE INTEREST OF NATURAL JUSTICE, THE ISSUES RAISED IN THE APPEAL OF ASSESSEE ARE RESTORED TO THE FILE OF ASSESSING OFFI CER FOR RE- ITA NO.653/CHNY/2019 :- 4 -: ADJUDICATION AFTER GRANTING ASSESSEE ADEQUATE OPPOR TUNITY TO SUBSTANTIATE THE NATURE OF EXPENSES. 7. IN THE RESULT, APPEAL OF ASSESSEE IS PARTLY ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 11 TH NOVEMBER, 2019, AT CHENNAI. SD/- SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER / CHENNAI * / DATED: 11 TH NOVEMBER, 2019. K S SUNDARAM !,- .- / COPY TO: 1 . / APPELLANT 4. / / CIT 2. !' / RESPONDENT 5. - !2 / DR 3. / () / CIT(A) 6. / GF