MUTHUSAMY ARUNADEVI, COIMBATORE V. ITO, WARD2(4), TIRUPPUR

MA 186/CHNY/2022

AI Insights

The case involves Smt. Muthusamy Arunadevi, who filed a miscellaneous application concerning the assessment year 2017-18. The primary issues were the validity of the assessment under section 144 without a notice under section 143(2), and the handling of cash withdrawals and deposits in the assessee's bank accounts. The Tribunal had previously noted that the assessee's counsel did not press the first two grounds regarding jurisdiction, leading to their dismissal. The Tribunal also addressed the validity of the return filed by the assessee, which was outside the due date and thus considered invalid. Regarding the cash transactions, the Tribunal had earlier estimated the availability of cash and sustained a balance addition, which the assessee sought to contest in the miscellaneous application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134792 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 02-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 02-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 07-12-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 144; 142(1); 143(2); 139(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER M.A No.186/CHNY/2022 (Arising out of ITA No.74/CHNY/2022) (िनधाŊरण वषŊ / Assessment Year: 2017-18) Smt. Muthusamy Arunadevi, 2/120-C, Seelakkampatti, Seelakkampatti Post, Pollachi, Coimbatore – 642 205. PAN: AUOPA 9902B Vs. The Income Tax Officer, Ward-2(4), Tirupur. (अपीलाथᱮ / Applicant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Applicant by : Shri A. Arjunraj, CA ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 03.02.2023 घोषणा कᳱ तारीख /Date of Pronouncement : 03.02.2023 आदेश / O R D E R PER MAHAVIR SINGH, VICE PRESIDENT : By way of this miscellaneous application, the assessee raised the first issue that the assessee never stated that she is not pressing the two grounds i.e., Ground Nos.1 & 2. We noted that the Tribunal in its order in ITA No.74/CHNY/2022 dated 12.10.2022 has noted the grounds and also noted that the ld.counsel for the assessee stated that he is not pressing these two grounds and hence, the same are dismissed as not pressed. The relevant reads as under:- - 2 - MA No.186/Chny/2022 2. The first issue raised vide ground Nos.1 & 2 is regarding jurisdiction which reads as under:- 1. CIT(A) erred in upholding the assessment u/s 144 passed without issuing any notice u/s 143(2) when the return of income was filed on 11.07.2019. 2. 142(1) notices issues are against the provisions of the Act and the consequent assessment is bad in law and CIT(A) is erred in upholding the same. 2.1 At the outset, the ld.AR for the assessee stated that he is not pressing these two grounds and hence, the same are dismissed as not- pressed. 2. When we consulted our log book and noted that the assessment was framed u/s.144 has the return filed by the assessee in response to notice u/.142(1) dated 13.03.2018 was not a valid return which is to be filed on or before 31.03.2018 u/s.139(4) of the Act. The assessee actually filed return of income on 11.07.2019 as per e-filing acknowledgment No.590122890110719. It means that once there is no valid return and the same was declared by AO as invalid return and non-est, there is no requirement of issue of notice u/s.143(2)of the Act as contended by ld.counsel. The relevant paras 5 & 6 of the assessment order read as under:- 5. The assessee failed to comply with all the terms, as prescribed in Rule 12 of the Income-tax Rules, 1962. Further opportunity was provided to the assessee in letter dated: 06.06.2019, for which there was no response. Following the rule of natural justice, this office has afforded one more opportunity by way of issue of notice u/s 142(1), - 3 - MA No.186/Chny/2022 dated: 13.08.2019, calling for various details and requesting to furnish certain information details on or before 19.08.2019. This notice was duly served through assessee's e-mail registered with the Income-tax department and through registered post. However, there was no response or compliance to any of the communications from this office. 6. After repeated reminders, the assessee submitted that the return of income has already been filed on 11.07.2019, which is neither within the due date as specified under section 139(1) of the I.T Act nor within the time allowed u/s 142(1) of the I.T Act. All the terms of the notice u/s 142(1) were left unheeded before the due date, even though the statutory notices mandates utmost compliance. The assessee has failed to comply with the provisions of all the terms of the notice issued under section 142(1) of the Act. Hence, the return filed for A.Y: 2017-18, is treated as non est and invalid return. 3. The AO has rightly issued notice u/s.142(1) of the Act and completed assessment which is as per law and there is no violation of principles of natural justice for non issuance of notice u/s.143(2) of the Act. Hence, this issue raised in this miscellaneous application is dismissed as there is no mistake apparent from record in the order of the Tribunal. 4. Coming to the issue of cash withdrawals which are more than cash deposits and ITAT has not considered the same, now the ld.counsel for the assessee in miscellaneous application filed detailed submissions including the details of cash deposit and withdrawals from bank accounts which has already been considered by the Tribunal and estimated availability of cash at - 4 - MA No.186/Chny/2022 Rs.5 lakhs and deleted the addition to that extent. The balance addition of Rs.2.70 lakhs is sustained. We noted that the issue has been considered and adjudicated upon and now, if we go into the issue that will tantamount to review for which, we have no power. Hence, this issue of assessee’s miscellaneous application is also dismissed. 5. In the result, the miscellaneous application filed by the assessee is dismissed. Order pronounced in the Open Court on 3 rd February, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 3 rd February, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ / Applicant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ (अपील)/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.