VAIDYANATHAN KALAIVANI,CHENNAI V. PCIT, CHENNAI

MA 98/CHNY/2024

AI Insights

The case involves a Miscellaneous Application filed by the assessee, Vaidyanathan Kalaivani, under section 254(2) of the Income Tax Act, 1961, challenging the Tribunal's earlier decision which dismissed his appeal. The primary contention was that the Assessing Officer (AO) had not adequately addressed certain queries and issues raised during the assessment year 2019-20, particularly concerning a capital receipt not credited to the profit and loss account. The Tribunal reviewed the submissions and the relevant documents, including notices and the assessment order, and concluded that the AO had conducted a complete scrutiny of the assessee's return and had not overlooked any critical issues. The Tribunal also noted that the assessee's request essentially sought to reargue the case, which is outside the scope of a Miscellaneous Application under section 254(2).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126927 (ITAT-CHENNAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2019-2020
• Other Referred Cases: Shri Ashok Kumar Jain (ITA No.1394/Chny/2024)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: A.S.SRIRAMAN
• Keywords: Salary income; Capital receipt; Dismissed; Explanation
• Section: 254(2); 56; 13

Judgement Text

" आयकर अपीलीय अिधकरण, ‘ए’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘A’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER M.A.No.98/Chny/2024 (In ITA No.1542/Chny/2024) (िनधा\u0005रण वष\u0005 / Assessment Year: 2019-20) Vaidyanathan Kalaivani, No.5/61, Plot No.43, II Cross Street, Sea Avenue, Neelankarai, Tiruvanmiyur, Chennai-600 041 Vs The PCIT-3, Chennai. PAN : AGVPK-1515-D (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr. A.S.Sriraman, Advocate \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवाईक\bतारीख/Date of hearing : 07.03.2025 घोषणाक\bतारीख /Date of Pronouncement : 25.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The present miscellaneous application is filed by the assessee u/s.254(2) of the Income Tax Act, 1961, in ITA No.1542/Chny/2024 against the Tribunal’s order dated 28.10.2024 dismissing appeal of the assessee. 2. The main argument of the learned counsel for the assessee is that the AO has raised specific query vide notice u/s.143(2) of the Act dated 31.03.2021 which is placed at page 76 & 77 of the paper book filed by the assessee. The learned counsel for the assessee further referred the page 13 of the paper book, which says amount not credited to the profit & loss account being capital receipt. The ld. Counsel further referred 216 of the paper book to contend that the assessee has uploaded the entire details and explanation on the query raised. He further submitted that the Tribunal has not 2 M.A No.98/Chny/2024 considered the order of the co-ordinate Bench in the case of Shri Ashok Kumar Jain (ITA No.1394/Chny/2024) therefore, there is mistake apparent from the record. 3. Per contra, Ld.DR prayed for dismissal of this Miscellaneous Application on the ground that assessee seeks to reargue the matter on same set of facts on record. 4. We have heard rival submissions and again gone through pages 76 & 77 of the paper book which shows that it is a notice issued by AO u/s.143(2) dated 31.03.2021 to participate and clarify the issues as raised initially. In fact, this notice says return of income has been selected for complete scrutiny. Captioned as:- “what is/are the issue(s) on which further clarification is required initially?” S.No. Issue i. Salary income ii. Refund claim iii. Other income Reported in Schedule A-OI not Credited to P & L Account. By this notice AO has only given an opportunity to the assessee to appear and answer the issues which were selected for complete scrutiny. From the record of appeal papers, we find that AO has never raised issue of compensation of Rs.3 crores in specific with relevant provisions of law viz., amended provisions of section 28, section 56 and section 2(24) of the Act which has effect from 01.04.2019 and are applicable to assessment year 2019-20. Further, at no point of time, the AO has taken into consideration Circular No.8/2018 (F.No.370142/07/2018-TPL) dated 26.12.2018 which enumerates Explanatory Notes to provisions of Finance Act, 2018. 3 M.A No.98/Chny/2024 Being a complete scrutiny case, the assessment order dated 13.08.2021 passed by the AO is too cryptic which does not speak application of mind by the AO, hence rightly revised by the ld.PCIT u/s.263 of the Act. On the face of it, no person instructed in law will accept the glib explanation justifying the present form of the assessment order. There is nothing pith and substance in the assessment order passed by the AO. Hence, by this Miscellaneous Application the assessee wants to reargue the matter which is not permissible under 254(2) of the Act. Since the assessee could not point out any specific mistake from record/order of this Tribunal dated 28.10.2024, we dismiss the Miscellaneous Application filed by the assessee. 5. In the result, Miscellaneous Application filed by the assessee is dismissed. Order pronounced in the open court on 25th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date:25.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Chennai / Coimbatore/Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0019 फाईल/GF. "