KODIYIL MOHAMMED RIJAZ,KANNUR V. ITO, WARD INT.TAX, KOZHIKODE

ITA 188/COCH/2025

AI Insights

The case involves Kodiyil Mohammad Rijaz Zuharas, an NRI and director of M/s.ABC Import and Export Limited, who appealed against the final assessment order passed by the Income Tax Officer, Ward (International), Kozhikode. The AO had added Rs.24,22,000 to the assessee's income, believing it to be commission received from the company, which was paid to six employees on behalf of the assessee. The assessee contested this addition, arguing that the inference drawn by the department was based on insufficient evidence. The Tribunal found that the DRP had not properly considered the assessee's objections and thus remanded the case back to the AO for a thorough re-examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 396424 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDARASAN S
• Assessee Lawyers: ARUN RAJ S
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Prakash Chand Yadav, Judicial Member ITA No.188/Coch/2025 : Asst.Year 2019-2020 Kodiyil Mohammad Rijaz Zuharas, Court Road Taliparamba Kannur – 670 141. PAN : CFMPM1342G. v. The Income Tax Officer Ward (International) Kozhikode. (Appellant) (Respondent) Appellant by : Sri.Arun Raj S, Advocate Respondent by : Sri.Sundarasan S, CIT-DR Date of Hearing : 22.05.2025. Date of Pronouncement : 26.05.2025 O R D E R Per Prakash Chand Yadav, JM : The present appeal of the assessee is arising from the final assessment order of the Assessing Officer dated 23.01.2025, passed u/s.147 r.w.s. 144C(13) of the Income-tax Act, 1961 and relates to the assessment year 2019-2020. 2. The brief facts of the case as culled out of the orders of the authorities below are that the assessee is an NRI, director in one M/s.ABC Import and Export Limited, filed his return of income declaring total income of Rs.17,66,710. The same was processed u/s.143(1) of the Act and thereafter the case of the assessee was selected for scrutiny. During the course of assessment proceedings, it has been observed that certain ITA No.188/Coch/2025. Kodiyil Mohammad Rijaz. 2 payments were made by the company on behalf of the assessee. The AO was of the view that the assessee has received this commission from the company and hence liable to be taxed on this amount which has been paid by the company to six employees on behalf of the assessee. Accordingly, the AO made an addition of Rs.24,22,000 to the returned income of the assessee. The additions made by the AO were affirmed by the Dispute Resolution Panel, and thereafter, the AO passed the final assessment order. 3. Aggrieved with the order of the AO, the assessee has come up in appeal before us and argued that the department is not correct in drawing inference that commission has been ultimately received by the assessee and that too on the basis of some rough jottings. 4. The learned CIT-DR relied upon the orders of the authorities below. 5. After considering the rival submissions, we are of the view that this case requires fresh consideration at the end of the AO inasmuch as the ld.DRP has not at all dealt with the objections filed by the assessee in a judicious manner. With these observations, we restore this matter back to the file of the AO for examining afresh in accordance with law, after affording a reasonable opportunity of being heard to the assessee, before passing any order. ITA No.188/Coch/2025. Kodiyil Mohammad Rijaz. 3 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 26th day of May, 2025. Sd/- (Inturi Rama Rao) Sd/- (Prakash Chand Yadav) ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin; Dated : 26th May, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "