ARUNACHALA NADAR PAULRAJAN SELVARAJAN, SIVAKASI V. DCIT, CROPORATE CIRCLE, MADURAI

ITA 725/CHNY/2023

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The case involves Arunachala Nadar Paulrajan Selvarajan, who is a partner in various firms and also runs a wholesale distribution business. A search under section 132 of the Income Tax Act, 1961 was conducted in 2008, leading to proceedings under section 153C. The assessee filed a return admitting a total income, which was later scrutinized, resulting in an increased assessment. The CIT(A) partly allowed the appeal, but the assessee contested the addition made under section 69 regarding land purchase credit. The Tribunal found that the CIT(A) had not considered crucial documents provided by the assessee, leading to the decision to remit the matter back for fresh evaluation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134979 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 24-07-2023
• Assessment Year: 2004-2005
• Appeal Filed On: 08-06-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V. RAJASEKARAN
• Keywords: Opportunity of being heard; Reasonable cause; Condonation of delay
• Section: 69; 132; 143(3); 143(2); 153C

Judgement Text

आयकर अपीलीय अिधकरण, ‘बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.725/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2004-05 Arunachala Nadar Paulrajan Selvarajan, New No. 59, Chairman A. Shanmugam Road, Sivakasi 626 123, Tamil Nadu. [PAN:AJGPS0996L] Vs. The Deputy Commissioner of Income Tax, Corporate Circle, Madurai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri V. Rajasekaran, CA ŮȑथŎ की ओर से/Respondent by : Shri S. Senthil Kumaran, CIT सुनवाई की तारीख/ Date of hearing : 25.07.2023 घोषणा की तारीख /Date of Pronouncement : 28.07.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals)-19, Chennai, dated 03.02.2022 relevant to the assessment year 2004-05. 2. The appeal of the assessee is filed with a delay of 431 days in filing the appeal before the Tribunal. The assessee has filed a petition for condonation of delay in support of an affidavit mentioning the reasons for delay in filing the appeal. By referring to the above affidavit, the ld. Counsel for the assessee has submitted that there is reasonable cause I.T.A. No. 725/Chny/23 2 for the delay and the delay in filing the appeal is neither wilful nor wanton and prayed for condonation of delay and to admit the appeal for adjudication. Against the above submissions, the ld. DR has not raised any serious objection. Considering the facts and circumstances, we hereby condone the delay in filing the appeal and admit the appeal for adjudication subject to the condition that the assessee should pay ₹.5,000/- to the State Legal Aid Authority, Hon’ble Madras High Court and produce necessary proof of payment of cost before the ITAT. 3. Brief facts of the case are that the assessee, in his individual capacity, is a partner in various partnership firms in the group concerns of M/s. Sri Kaliswari Fireworks, Sivakasi and is regularly assessed to tax. Besides, as a sole proprietor, he is also engaged in the business of whole sale distribution of HLL, Lakme, Soft drinks under the name style of “M/s. Aruna Agencies”. A search under section 132 of the Income Tax Act, 1961 [“Act” in short] was conducted in the business and residential premises of M/s. Sri Kaliswari Fire Works group concerns and its partners on 21.10.2008. The Assessing Officer has initiated proceedings under section 153C of the Act and notice under section 153C r.w.s. 153A(a) of the Act was issued on 12.11.2009 for the assessment year 2004-05. In response to the notice, the assessee filed return of income for the I.T.A. No. 725/Chny/23 3 assessment year 2004-05 on 05.03.2010 admitting total income of ₹.16,06,248/-. Subsequently, the case was taken up for scrutiny by issuing notice under section 143(2) of the Act dated 18.08.2010. After considering the details furnished against statutory notices, the Assessing Officer has completed the assessment under section 143(3) r.w.s. 153C of the Act dated 31.10.2010 determining total income of the assessee at ₹.20,89,888/- after making various additions. On appeal, the ld. CIT(A) partly allowed the appeal of the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal against confirmation of addition made under section 69 of the Act amounting to ₹.3,33,744/- towards land purchase credit. 5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. The ld. CIT(A) confirmed the addition made under section 69 of the Act towards land purchase credit for the reason that the assessee has not filed relevant computation along with return of income disclosing the sale, capital gain (even though no capital gain arises) and the investment in the Rural Electrification Corporation Ltd. Before us, in the form of paper book, the assessee has filed copy of transfer of deed for sale of property dated 11.06.2003 as well as copy of I.T.A. No. 725/Chny/23 4 bond for investment in Rural Electrification Corporation Ltd. for ₹.3,40,000/- dated 01.11.2003 and prayed for deleting the addition. Since the above documents were not furnished before the ld. CIT(A), the ld. CIT(A) could not consider the same while adjudicating the appeal. Under the above facts and circumstances, we set aside the order of the ld. CIT(A) on this issue and remit the matter back to the file of the ld. CIT(A) to decide the issue afresh in accordance with law by considering the evidences for deposit made with Rural Electrification Corporation Ltd. in accordance with law by affording an opportunity of being heard to the assessee. The assessee is also directed to furnish the evidences before the ld. CIT(A) as was furnished before the Tribunal. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28 th July, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 28.07.2023 Vm/- I.T.A. No. 725/Chny/23 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.