Appeal details
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
14-03-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
DB
Assessment Year
2015-2016
Judgement Text
" \n \nIN THE INCOME TAX APPELLATE TRIBUNAL \nCOCHIN BENCH \n \nBEFORE SHRI INTURI RAMA RAO, AM \nAND SHRI SOUNDARARAJAN K., JM \n \nITA Nos. 1010 to 2012/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nPulliyil Zainaba \n17/8B, Cholakkal House, Down Hill \nMalappuram 676519 \n[PAN: AAJPZ2853R] \nvs. \nACIT, Central Crcle-1 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \nITA Nos. 1074 to 1077/Coch/2024 \n Assessment Years: 2014-15, 15-16, 17-18-18-19 \n \nAbdulla Kekepuram Mohinuddeen \nMujassi Palace, Kekepuram \nThalangara P.O., Kasaragod 671122 \n[PAN: ALEPK2423Q] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \nITA Nos. 1078 to 1080/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nPuliyankadavath Kunjippathu \nRayaroth House, Arikulam P.O. \nKoilandy, Kozhikode 673322 \n[PAN: BKEPK7214F] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \n \n\n2 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nITA Nos. 1081 & 1082/Coch/2024 \n Assessment Years: 2014-15 & 2015-16 \n \nChundanveettil Pazhava Ottayil \nMohammed Shanil \nPazhava Ottayil House, Valappil \nHouse, BP Angadi, Tirur 676102 \n[PAN: APYPM7315P] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1083 to 1085/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nKakkodi Shaji \nAshiyana, Kakkodi \nKozhikode 673611 \n[PAN: CBWPS3992J] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1086 to 1088/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nPadinhar Abbas Sikander Ali \nSikander Ali House, K.K. Puram \nThalangara P.O. Kasaragod 671122 \n [PAN: DHBPS0948N] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1092 & 1093/Coch/2024 \n Assessment Years: 2014-15 & 2015-16 \n \nMohammed Anwar Chemnad Lasyath \nNoor Mariyam, Paravandukkam P.O. \nDelijunction, Kalanad, Kasaragod \n[PAN: ADHPL7227] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \n \n\n3 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nITA Nos. 1094 to 1096/Coch/2024 \nAssessment Years: 2014-15, 2015-16 & 2018-19 \n \nPallipuzha Ahamed Abbas \nW/KSD Sham Manzil, Pallipuzha \nPallikkera, Kasaragod 671316 \n[PAN: AIKPA5958R] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1097 to 1100/Coch/2024 \n Assessment Years: 2013-14 & 2014-15 \n \nSamsuddeen Kuttankavil \nZenath Manzil, Kondotty P.O. \nMalappuram 673630 \n[PAN: APYPM7315P] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1111 & 1115/Coch/2024 \n Assessment Year: 2014-15 \n \nMuthum Parambath Sabna \nEdathil House, Karayad P.O. \nMeppayyur, Kozhikode 673524 \n[PAN: ADVPA3630Q] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1117 to 1121/Coch/2024 \n Assessment Years: 2013-14 to 2016-17 & 2018-19 \n \nShareena Poyyeri \nEdathil House, Karayad Post \nMeppayyur, Kozhikode 673524 \n[PAN: BPNPS5144G] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \n\n4 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \n \nITA Nos. 1135 to 1140/Coch/2024 \n Assessment Years: 2013-14 to 2018-19 \n \nKakkodi Beeran Koya \n17/1491-D, 3rd Floor, Malabar Gate \nPuthiyara P.O., Kozhikode 673004 \n[PAN: ALJPB9375M] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1141 to 1143/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nMujeeb Rahman Maruthiyatt \n17/1491-D, 3rd Floor, Malabar Gate \nPuthiyara P.O., Kozhikode 673004 \n[PAN:AJCPM7794A] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \nITA Nos. 1144 to 1146/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nMahamood Pallipuzha Ahamed \nPA House, Pallipuzha, Pallikkara \nKasaragod 671361 \n[PAN: AFZPM8830J] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1149 to 1154/Coch/2024 \n Assessment Years: 2013-14 to 2018-19 \n \nNellullaveetil Abdul Kareem \n5/2697-H-3, Malabar Hills Housing \nColony. KP Chandran Road \nKozhikode 673006 \n[PAN: AHFPK0128H] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n\n5 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nITA Nos. 01, 04, 05 & 07/Coch/2025 \n Assessment Years: 2013-14 to 2016-17 \n \nKunjiperi Haji Jameela \nAiswarya, Chulliyode Road P.O. \nCivil Station, Kozhikode 673020 \n[PAN: ACNPJ5272A] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 09 & 10/Coch/2025 \n Assessment Years: 2014-15 & 2015-16 \n \nThachan Poyil Nazeer Hussain \nAiswarya, Chulliyode Road P.O. \nCivil Station, Kozhikode 673020 \n [PAN: AEYPN7537B] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 29 to 32/Coch/2025 \n Assessment Years: 2013-14 to 2016-17 \n \nEdathil Abdul Jaleel \nEdathil House, Kuthiravattam P.O. \nThondayad, Kozhikode 673016 \n [PAN: AERPA8183P] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 156 & 157/Coch/2025 \n Assessment Years: 2013-14 & 2014-15 \n \nSiyad Edathil Abdulla \nEdathil House, Kuthiravattam P.O. \nThondayad, Kozhikode 673016 \n [PAN: ADVPA3630Q] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \n \n\n6 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nITA Nos. 1089 to 1091/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nPadinhar Abbas Noushad Ali \nSikander Ali Manzil, K.K. Puram PO \nThalangara, Kasargod 671122 \n [PAN: AJSPN3565G] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \nITA Nos. 1033 to 1035/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nSajith Chemmikkat \nAshiana, Kottooli P.O. Thondayad \nKozhikode 673016 \n [PAN: BNAPS8647H] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA Nos. 1036 & 1037/Coch/2024 \n Assessment Years: 2014-15 & 2015-16 \n \nKulakkandathil Basheer \nKolakkandathil House, Paleri P.O. \nKuttiadi, Kozhikode 673508 \n [PAN: ASVPB5319G] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \nITA No. 1038 /Coch/2024 \n Assessment Year: 2014-15 \n \nKurungot Ayisha \nKaipurath Meethal House, Karayad PO \nKoilandy, Kozhikode 673524 \n[PAN: ASLPA1796N] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n\n7 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nITA Nos. 1039 to 1041/Coch/2024 \n Assessment Years: 2013-14 to 2015-16 \n \nThekkayil Jabir \nTK Huse, Kavumthara, Kavil P.O. \nNaduvannur, Kozhikode 673614 \n [PAN: AMAPJ0337P] \nvs. \nACIT, Central Circle - 2 \nAayakar Bhavan, Mananchira \nKozhikode 673001 \n \n(Appellant) \n \n(Respondent) \n \n \nAppellant by: \nShri C.B.M. Warrier, CA \nRespondent by: \nShri Suresh Sivanandan, CIT-DR \nSmt. Leena Lal, Sr. D.R. \n \nDate of Hearing: \n 13.03.2025 \nDate of Pronouncement: \n 14.03.2025 \n \n \n \nO R D E R \nPer Bench \nThese appeals filed by different assessees are directed against \nseparate orders of the National Faceless Appeal Centre, Delhi \n[CIT(A)], dated 25.10.2024. \n2. \n Since identical issues are involved in all these appeals, they are \nheard together and disposed vide this common order. \n3. \nFor the sake of convenience and clarity the facts relevant to the \nappeal bearing ITA No1117/Coch/2024 for AY 2013-14 in the case of \nShareena Payyeri are stated herein. \n4. \nBrief facts of the case are that that appellant is an individual. \nThe return of income for AY 2013-14 was filed on 31.03.20154 \n\n8 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \ndeclaring income of Rs.2,17,980/-. Subsequently, during the course \nof search and seizure proceedings under the provisions of section \n132 of the Income Tax Act, 1961 (the Act) in the case of Malabar \nGroup of concerns, the AO of the said group recorded satisfaction \nthat the assessee received undisclosed income from the said Malabar \ngroup of companies in the form of return on investment based on the \nentries found in the second set of books of account maintained by \none Mr. Prajeesh in his hard disk and one Mr. Sameer in his pen \ndrive. Accordingly, based on this information contained in the \nseized material found in the case of Malabar group of companies, \nthe AO issued a notice u/s. 153C of the Act on 07.05.2021. The \nappellant also filed return of income in response to the notice issued \nu/s. 153C disclosing the same income as shown in the original return \nof income filed u/s. 139 of the Act. \n5. \nAgainst the said return of income, the assessment was \ncompleted by the ACIT, Central Circle-2, Kozhikode (hereinafter \ncalled \"the AO\") vide order dated 20.03.2022 passed u/s. 143(3) \nr.w.s. 147 of the Act at a total income of Rs. 5,35,980/-. While doing \nso, the AO brought to tax a sum of Rs. 3,18,000/- by holding that the \nappellant had not shown the income received from Malabar group of \nconcerns. \n6. \nBeing aggrieved, an appeal was filed before the CIT(A) \ncontending that there was no evidence to show that the appellant had \nreceived income of Rs. 3,18,000/- on investment made with Malabar \n\n9 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nGroup. It is further contended that the appellant has been offering \nthe income on receipt basis and no income can be taxed based on the \nentries found in the books of third party. It is further contended that \nin the absence of any conclusive evidence brought on record by the \nDepartment, no addition can be made based merely on the entries \nfound in the books of third party. The learned CIT(A), however, \ndismissed the appeal by confirming the action of the AO. \n7. \nBeing aggrieved, the appellant is in appeal before us in the \npresent appeal. \n8. \nIt is contended that the CIT(A), without adverting to the \ngrounds of appeal filed by the assessee and the statement of facts, \nhad merely dismissed the appeal and, therefore, the matter may be \nremanded to the file of the CIT(A). \n9. \nOn the other hand, the CIT-DR did not raise any serious \nobjection. \n10. \nWe have heard the rival contentions of both the parties and \nperused the material available on record. From the ground of appeal \nfiled before the CIT(A), it is clear that the appellant laid serious \nchallenge on the very validity of the assessment made u/s. 143(3) \nr.w.s. 153C of the Act by alleging that without recording satisfaction \nby the AO of the searched person, and as well as the AO of the \nappellant, a notice u/s. 153C of the Act was issued. From para 5 of \n\n10 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nthe order of the CIT(A) it is clear that the CIT(A) merely returns \nfinding by observing as under: - \n5. The grounds raised by the appellant have been carefully \nconsidered. One of the contentions of the appellant is that the \nassessment made u/s.153C r.w.s. 144 was done without \nrecording satisfaction and the assessment was not supported by \nany evidence. In this regard, it is observed that as per records, \nnotice u/s.153C was issued after recording due satisfaction by \nthe AO. Hence, this argument of the appellant is not \nacceptable. Further, the appellant has also contended that the \nassessment made by the AO was not supported by any \nevidence. As it can be seen from the assessment order, during \nthe course of the search on MGC of which the appellant is a \nshareholder, evidence regarding undisclosed dividend/interest \npayment were found and seized. The particulars of the evidence \nseized during the course of search is also mentioned in the \nbody of the assessment order. Therefore, this argument of the \nappellant is also not acceptable.” \n11. \nHowever, the CIT(A), without referring to the satisfaction \nnote recorded by the AOs of both the searched party as well as the \nappellant, merely recorded this finding. It must be made clear that \nthe assessment order also is totally silent with regard to recording of \nsatisfaction by the AO as well as the AO of the searched person. \nFurthermore, what evidence was gathered during the course of \nsearch and seizure proceedings in the case of Malabar group of \nconcerns indicate payment of interest on investment made by the \nappellant, was not made available to the appellant. From reading of \nthe assessment order, it is not clear whether the name of the \nappellant figured in the seized material. Thus, the CIT(A) also, \n\n11 \nITA No. 1010/Coch/2024 \n Pulliyil Zainaba \n \n \n \nwithout adverting to the seized material and discussing the evidence \ngathered by the AO, merely confirmed the addition. In these \ncircumstances, we are of the considered opinion that the matter \nrequires remand to the file of the CIT(A) for fresh adjudication in \naccordance with law after affording reasonable opportunity of \nhearing to the appellant reasonable opportunity of hearing to the \nappellant. We make it clear that all the contentions made by the \nassessee are kept open before the CIT(A). \n12. \nIn the result, all the appeals filed by the assessees are allowed \nfor statistical purposes. \nOrder pronounced in the open court on 14th March, 2025. \nSd/- \nSd/- \n(SOUNDARARAJAN K.) \nJUDICIAL MEMBER \n(INTURI RAMA RAO) \nACCOUNTANT MEMBER \n \nCochin, Dated: 14th March, 2025 \nn.p. \nCopy to: \n \n1. The Appellant \n2. The Respondent \n3. The Pr. CIT concerned \n4. The Sr. DR, ITAT, Cochin \n5. Guard File \n By Order \n \n \n Assistant Registrar \n ITAT, Cochin \n"
Mehul