RELIANCE GENERATORS PRIVATE LIMITED,CHENNAI V. INCOME TAX OFFICER, NFAC

ITA 2906/CHNY/2024

AI Insights

The case involves Reliance Generators Private Limited, which failed to file a return of income for the Assessment Year 2015-16 despite having a sale consideration from the sale of immovable property amounting to Rs. 92,00,000. The Assessing Officer (AO) issued a notice under section 148 of the Income Tax Act, 1961, and subsequently assessed a Long Term Capital Gain of Rs. 83,73,740. The assessee's appeal to the CIT(A) was dismissed due to non-appearance, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal decided to remand the case back to the CIT(A) for a fresh examination, providing the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472412 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Keywords: Set aside; Corroborative evidences; Reopening of assessment
• Section: 147; 148; 144

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ (SMC) BENCH, CHENNAI माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं माननीय ŵी जगदीश, लेखा सद˟ क े समƗ। BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI JAGADISH, ACCOUNTANT MEMBER आयकरअपील सं./ ITA No.2906/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2015-2016) Reliance Generators Private Limited, No.27, Railway Colony, 4th Street, Aminjukarai, Chennai 600 029. [PAN: AAACR 1736K] Vs. The Deputy Commissioner of Income Tax, LTU Circle 1, Chennai (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : None Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. Pushpa Hemachand, JCIT सुनवाई कȧ तारȣख/Date of Hearing : 22.01.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 28.01.2025 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1069699926 (1) dated 16.10.2024. The assessment was framed by the Assessing Officer, National Faceless Assessment Centre, Delhi for the assessment year 2015-16 u/s.147 r.w.s. 144 with section 144B of the Income Tax Act, 1961 (hereinafter ‘the Act’), vide order dated 15.03.2023. 2 ITA No. 2906/Chny/2024 2. Brief facts of the case are that the assessee company has failed to file a return of income for the Assessment year 2015-16 though there has been sale consideration on sale of immovable property amounting to Rs. 92,00,000/-. After considering the said fact, the AO issued notice u/s 148 of the Act. During the assessment proceedings the AO issued various notices. During the assessment proceedings, the appellant has stated that the reopening of assessment does not arise as the appellant has paid tax on the said immovable property transaction and the said tax payment is duly reflected in 26AS. In view of complete non-compliance from the appellant, the AO obtained the copy of sale deed by issuing notice u/s 133(6) of the Act to Shri C Balasubramaniam of Chennai, one of the co-purchaser of the said property. The AO, on the basis of facts narrated in the sale deed, calculated the Long Term Capital Gain at Rs. 83,73,740/- by taking the indexed cost of acquisition at Rs.8,26,260/-. Accordingly, the AO completed the assessment proceedings u/s 144 r.w.s 147 by the making addition of Rs. 83,73,740/- as Long Term Capital Gain of the I.T. Act. Aggrieved by the addition, the appellant filed an appeal before the ld. CIT(A). However, before the ld.CIT(A), assessee did not appear despite notices issued, hence the ld.CIT(A) proceeded on merits and dismissed the appeal and upheld the order of AO. Hence, assessee is further in appeal before us. 3. Before us also, none appeared on behalf of the assessee. The Ld. JCIT-DR pleaded for dismissal of the appeal on the ground that the assessee has not filed supporting evidences with regard to the transactions before the ld. CIT(A) also. 3 ITA No. 2906/Chny/2024 4. We have gone through the orders of lower authorities and submission addressed by the ld. Departmental Representative. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(A) to file all relevant evidences/documents to prosecute his case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.CIT(A) for denovo adjudication of appeal. The Ld.CIT(A) who shall proceed for denovo adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appellate proceedings as per law. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 28th day of January, 2025 at Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद˟ / ACCOUNTANT MEMBER (मनु क ुमार िगįर) (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 28-01-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "