RAJESH SINGHI,KOLKATA V. D.C.I.T., CC - 4(1), KOLKATA

ITA 2356/KOL/2024

AI Insights

This case involves an appeal by Rajesh Singhi against the orders of the AO and CIT(A) concerning the assessment year 2014-15. The AO had made several additions to the income of the assessee, alleging non-filing of the income tax return, which was contested by the assessee. The CIT(A) upheld the AO's decision, leading to the present appeal. The Tribunal found merit in the assessee's arguments, particularly regarding the need for a proper verification of the return filing, and thus restored the matter to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35882 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: OBSERVING THUS
• Keywords: Set aside; Salary income; Capital Gains; Search and seizure
• Section: 142(1); 143(2); 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “एसएमसी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey, Judicial Member &Shri Sanjay Awasthi, Accountant Member] I.T.A. No. 2356/Kol/2024 Assessment Year: 2014-15 Rajesh Singhi (PAN: ALSPS 4854 M) Vs. DCIT, Central Circle-4(1), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 17.02.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 10.03.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Manish Tiwari, A. R For the revenue / राजèव कȧ ओर से Shri Anindya Kumar Bandopadhyay, Addl. CIT Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-27, Kolkata (hereinafter referred to as the “Ld. CIT(A)”] dated 28.08.2024 for the AY 2014-15. 2. At the outset, there is a delay of 29 days in filing the appeal. The Ld. A.R filed condonation petition which is as under: 2 I.T.A. No.2356/Kol/2024 Assessment Year: 2014-15 Rajesh Singhi “In the instant case, the order u/s 250 of the I. T. Act, 1961 was passed on 28.08.2024 by the Ld. CIT(A)-27, Kolkata. So, the due date for filing the appeal before the Hon’ble Tribunal was 27.10.2024. But due to following reasons, the appellant individual was unable to file appeal within the stipulated time of two months from the appellate order. i) Due to the festive season, the Durga Puja (10/10/2024 to 13/10/2024), Lakshmi Puja (16/10/2024), Diwali (31/10/2024), Chat puja (07/11/2024) and Jagaddhatri Puja (08/11/2024 to 10/11/2024) etc. many of the staff members of the appellant individual were on leave and irregular and the office was running short of staff members and the general work position of the office was not up to the mark. Due to this reason, the last date of filing appeal was overlooked by the staff members. This is the main reason for delay submission of Appeal. ii) Only after the end of festive season, the non-submission of appeal was detected and the appeal filing process was started. It takes few days to take final decision of filing further appeal before the Hon’ble Tribunal So, in such a situation, humble request is considering the above reasons for delay submission of appeal kindly condone the delay of 29 days and allow the appellant individual to file against the baseless and whimsical confirmation by the Ld. CIT(A) of mindless disallowances made by the AO at the time of passing of assessment order u/s 144/153D of the Income Tax Act, 1961 dated 21.03.2016.” On perusal of the condonation petition, we condone the delay and admit the appeal for hearing. 3. Brief facts of the case of the assessee are that the search and seizure operation u/s 132 of the Act was conducted on the residential and business premises of the various companies belonging to the Prithvi Group including the assessee. During the course of search and survey operations, various papers and documents belonging to the assessee were seized. Notices u/s 143(2) was issued in respect of return filed on 31.03.2015. Income shown by the assessee was Rs. 8,83,600/-.Notice u/s 142(1) was issued but none appeared on behalf of the assessee even the last opportunity has been given. The AO has found that the assessee filed copy of IT return with acknowledgement no. of the return, however, on verification from the system, it appears that the acknowledgement number is false and therefore there is no return filed by the assessee for AY 2014-15. The AO had added three additions; i) income from salary at Rs. 16,010/-, ii) income from capital gains at Rs. 2,93,641/- and iii) income from other sources at Rs. 11,15,901/- . 3 I.T.A. No.2356/Kol/2024 Assessment Year: 2014-15 Rajesh Singhi 4. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the Ld. CIT(A) dismissed the appeal of the assessee by observing thus- The assessee has claimed that the AO has wrongly treated as no return was filed. However, the assessee had not co-operated during the assessment proceedings with the AO. The AO had completed the assessment as per the available data in the absence of assessee. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 5. The Ld. Counsel for the assessee before us has submitted that the assessee has to be given an opportunity to place his case before the AO as the return was filed by the assessee was a valid return. The Ld. Counsel further draw the attention of the tribunal that the order passed by the AO confirmed by the Ld. CIT(A) are only on the ground that the assessee did not co-operate in the proceedings before the AO. The Ld. Counsel produce IT return including the acknowledgement copy before us for Ay 2014-15 and submitted that the ITR is a valid ITR. 6. The Ld. D.R supports the impugned order. 7. We have gone through the order passed by the AO and find that AO passed order when he found that the acknowledgment number of return in the system appears to be false so there is no return filed by the assessee for the AY 2014-15. The Ld. CIT(A) has also dismissed the appeal of the assessee by giving a finding that the assessee did not co-operate during the assessment proceedings and the AO has completed the assessment as per the available data. The Ld. A.R has submitted that the assessee has filed valid return for AY 2014-15. It is pertinent to mention here that AR before us filed the copy of Income tax return along with acknowledgment. 8. Going over the order passed by the AO and confirmed by the Ld. CIT(A), we find substance in the arguemnts of the counsel of the assessee that a proper verification regarding filing of ITR is required by AO. Accordingly, the appeal of the assessee is restored in the file of the AO with this direction to pass a fresh order after proper verification and after hearing the assessee. The order passed by the AO confirmed by 4 I.T.A. No.2356/Kol/2024 Assessment Year: 2014-15 Rajesh Singhi the Ld. CIT(A) are hereby set aside. The appeal of the assessee is restored back to the file of AO for fresh adjudication. In the result, the appeal of assessee is allowed for statistical purposes. Order is pronounced in the open court on 10th March, 2025 Sd/- Sd/- (Sanjay Awasthi/संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 10th March, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Rajesh Singhi, 1A, 1H Rose, 61, B. L. Saha Road, Tollygaunge, Kolkata-700053. 2. Respondent – DCIT, CC-4(1), Kolkata 3. Ld. CIT(A)-27, Kolkata 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "