V.Anandhi, Thanjavur V. ACIT, Thanjavur

ITA 828/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64243 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-08-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 04-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K RAJAGOPAL
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH CHENNAI BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ------- ITA NO. 828/MDS/2011 ASSESSMENT YEAR : 2002-03 SMT. V. ANANDHI, C/O LAKSHMI SEEVAL FACTORY, MEDICAL COLLEGE ROAD, THANJAVUR. V. THE ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-I, THANJAVUR. (PAN :AAEPV0355P) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAROJ KUMAR PARIDA, ADVOCATE RESPONDENT BY : SHRI K. RAJAGOPAL, JCIT DATE OF HEARING : 30.08. 2012 DATE OF PRONOUNCEMENT : 14.09.2012 O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT Y EAR 2002-03 IS AGAINST THE ORDER PASSED BY THE CIT(APPE ALS), TIRUCHIRAPALLI DATED 28-03-2011. 2. THE ASSESSEE HAS RAISED 10 GROUNDS OF APPEAL REL ATING TO RE-OPENING OF THE ASSESSMENT UNDER SECTION 148 OF T HE INCOME ITA NO.828 /MDS/2011 2 TAX ACT, 1961 ('THE ACT' FOR SHORT). THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS RUNNING THE BUSINESS OF PURCHASE AN D SALE OF SEEVAL (ARECANUT) IN THE NAME AND STYLE OF M/S. LAK SHMI NUTS AND RUNNING M/S. LAKSHMI ENGG. WORKS. THE ASSESSEE HAD FILED RETURN OF INCOME FOR THE YEAR UNDER CONSIDERA TION ADMITTING TOTAL INCOME OF ` 55,20,966/- AND AGRICULTURAL INCOME OF ` 10,02,719/-. SUBSEQUENTLY THE ASSESSMENT WAS RE-OPENED U/S 147 OF THE ACT BY ISSUING A NOTICE U/ S 148 ON 26-03-2009 AND ASSESSMENT WAS COMPLETED BY DISALLOW ING THE INTEREST AND FINANCIAL CHARGES. 3. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER BEFORE THE CIT(APPEALS). THE LEARNED CIT(APPEALS) WITHOUT EXAMINING THE ISSUE SIMPLY OBSERVED THAT THE ASSESS ING OFFICER HAS RE-OPENED THE ASSESSMENT BASED ON THE FINDING T HAT INCOME HAD ESCAPED ASSESSMENT. 4. ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MAT TER BEFORE THE TRIBUNAL. THE ONLY ISSUE RAISED BEFORE THE TRIBUNAL IS THAT THE RE-OPENING OF THE ASSESSMENT U/S 147 BY ISSUING A NOTICE U/S 148 OF THE ACT IS BAD IN LAW AND THE LEA RNED CIT(APPEALS) FAILED TO CONSIDER THE ISSUE. THE LEA RNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LEARNED CIT(APP EALS) HAS ITA NO.828 /MDS/2011 3 NOT AT ALL CONSIDERED THE ISSUE AND NOT RECORDED AN Y REASONS TO UPHOLD THE RE-OPENING. 5. ON THE OTHER HAND, THE LEARNED DR SUPPORTED THE ORDER OF THE LEARNED CIT(APPEALS). HOWEVER, BOTH THE PAR TIES SUBMITTED THAT THIS APPEAL MAY BE REMITTED BACK TO THE LEARNED CIT(APPEALS) TO DECIDE THE ISSUE AFRESH. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE ONLY ISSUE RAISED BEFORE THE TRIBUNAL IS WITH REGARD TO THE RE- OPENING OF THE ASSESSMENT U/S.147 OF THE ACT. WE H AVE CAREFULLY GONE THROUGH THE ORDER PASSED BY THE LEAR NED CIT(APPEALS) AND FIND THAT THE LEARNED CIT(APPEALS) WITHOUT GIVING ANY REASON AND WITHOUT DISCUSSING ANYTHING A BOUT THE RE-OPENING HAS SIMPLY OBSERVED IN ONE LINE THAT THE RE-OPENING IS BASED ON THE FINDING THAT INCOME HAD ESCAPED ASS ESSMENT. WE FIND THAT THIS IS NOT A SUFFICIENT REASON TO CON FIRM THE ORDER OF THE ASSESSING OFFICER. THE LEARNED CIT(APPEALS) HAS PASSED A VERY CRYPTIC ORDER. IN OUR OPINION, LEARNED CIT( APPEALS) HAS TO PASS A DETAILED ORDER AFTER EXAMINING EACH AND E VERY ASPECT. WE THEREFORE SET ASIDE THE ORDER PASSED BY THE LEARNED CIT(APPEALS) AND REMIT THE MATTER BACK TO THE FILE OF THE ITA NO.828 /MDS/2011 4 LEARNED CIT(APPEALS) TO DECIDE THE ISSUE OF RE-OPEN ING DE NOVO AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSE E OF BEING HEARD. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON FRIDAY, THE 14 TH OF SEPTEMBER, 2012, AT CHENNAI. SD/- SD/- (N. S. SAINI) ( V.DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 14 TH SEPTEMBER, 2012. H. COPY TO: (1) ASSESSEE (2) ASSESSING OFFICER (3) CIT (APPEALS) (4) CIT (5) D.R. (6) GUARD FILE