VISWANATHAN KRISHNAKUMAR,ALUVA V. INCOME TAX OFFICER, ALUVA

ITA 606/COCH/2025

AI Insights

The case involves an appeal by Viswanathan Krishnakumar against the order of the National Faceless Appeal Centre (NFAC), Delhi, which was passed under section 250 of the Income-tax Act, 1961 for the assessment year 2015-16. The appeal was initially against the order of the National Faceless Assessment Centre (NFAC), which had made several additions to the assessee's income, including disallowances and short-term capital gains. The assessee, having not filed a return for A.Y. 2016-17, was assessed after a notice under section 148 was issued. The Tribunal admitted additional evidence due to technical issues in previous submissions and remitted the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789465 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 27-08-2025
• Other Referred Cases: National Thermal Power Co. Ltd. [1998] 97 Taxman 358 / 229 ITR 383
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL. SNR
• Assessee Lawyers: ANIL KUMAR P J
• Keywords: Opportunity of being heard; Additional evidence; Depreciation; Capital Gains; Competent authority
• Section: 147; 148; 80C

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, KOCHI BEFORESHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A No.606/Coch/2025 (Assessment Year: 2015-16) Viswanathan Krishnakumar X/190,Krishnalaya Library Road, Aluva, Kochi-683 101 PAN : ALVPK9461H vs Income-tax Officer K A P Complex, Railway Station Road, Aluva, Kochi APPLICANT RESPONDENT Assessee by : Shri Anil Kumar P J, Adv Respondent by : Smt. Leena Lal. Snr AR Date of hearing : 29/10/2025 Date of pronouncement : 24/11/2025 O R D E R Per: Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter called ‘Ld.CIT(A)] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) for assessment year 2015-16, date of order 26/06/2025. The impugned order emanated from the order of the National Faceless Assessment Centre (in short, ‘Ld. AO’) passed under section 147 r.w.s. 144B of the Act, date of order 27/03/2022. Printed from counselvise.com 2 ITA 606/Coch/2025 VishwanathanKrishnakumar 2. The brief facts of the case are that the Ld.AO had information that the assessee had purchased immovable property of Rs.16,88,000/- and received commission of Rs.91,02,400/- during the A.Y. 2015-16. However, the assessee had not filed any return of income for A.Y. 2016-17. Accordingly, notice u/s 148 was issued on 30/03/2021 after taking necessary approval from the competent authority. In response to the said notice, the assessee has filed his return of income on 18/11/2021 declaring total income of Rs.35,61,420/-. The assessment order was passed u/s 147 r.w.s. 144B of the Act, dated 27/03/2022 assessing the total income at Rs.64,88,400/- wherein the Ld.AO made the following additions:- 1. Disallowance of deduction u/s 24(b) Rs. 1,70,000/- 2. Disallowance of deduction u/s 80C Rs. 1,11,276/- 3. Disallowance of business promotion expenses Rs.2,25,123/- 4. Disallowance of 33% of vehicle expenses and Depreciation on vehicle Rs. 7,32,411/- 5. Short Term Capital gains Rs.16,88,000/- The aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld.CIT(A) partly allowed the appeal filed by the assessee. Being aggrieved, the assessee has filed the appeal before the Tribunal. 3. The Ld.AR in argument stated that related to this appeal, the assessee is ready to file the additional evidence before the Bench. The relevant part of the petition for admission of additional evidence u/r 26 of the Income-tax (Appellate Tribunal) Rules, 1963, which is extracted below:- “PETITION FOR ADMISSION OF ADDITIONAL EVIDENCE (Under Rule 26 of the Income Tax (Appellate Tribunal) Rules, 1963) Printed from counselvise.com 3 ITA 606/Coch/2025 VishwanathanKrishnakumar The Appellant most respectfully submits as under: The present appeal is filed against the order dated 26.06.2025 bearing DIN ITBA/NFAC/S/250/2025-26/1077832481(1) passed by the [CIT(A)] for the Assessment Year 2015-16. During the course of appellate proceedings before the lower authorities, the appellant could not furnish the following documentary evidences due to reasons beyond its control: A. True Copy of the Commission Agreement. B: Expenses ledger copies along with Expense Vouchers C: Documents related to claim u/s.54F The sand documents are now annexed herewith and marked as Annexure-1 to 7. These documents are relevant and essential for adjudication of the issues involved in the present appeal. The non-production of the above evidences before the lower authority was neither willful nor deliberate but due to technical portal issues. It is submitted that in the interest of justice, the Hon'ble Tribunal may kindly admit these additional evidences in exercise of powers under Rule 26 of the Income Tax (Appellate Tribunal) Rules, 1963. Reliance is placed on the principle that substantive justice should prevail overtechnicalities, and relevant material necessary for proper adjudication ought not to be excluded merely on procedural grounds. In the light of the facts and circumstances stated above, it is most humbly prayed that this Honorable Tribunal may be pleased to admit and take on record the additional evidences annexed herewith and pass such other order(s) as this Honorable Tribunal may deem fit in the interest of justice and equity.” 4. The Ld.DR has argued and not made any strong objection against the admission of additional evidence. 5. We have considered the rival submissions and carefully perused the material available on record. The additions in dispute pertain to various heads, namely: deduction under section 24(b); disallowance under section 80C; disallowance of business promotion expenses; disallowance of 33% of vehicle Printed from counselvise.com 4 ITA 606/Coch/2025 VishwanathanKrishnakumar expenses along with depreciation on the vehicle; and addition on account of short-term capital gains. We have also examined the additional evidence furnished by the assessee, while respectfully relying on the judgment of the Hon’ble Supreme Court in National Thermal Power Co. Ltd. [1998] 97 Taxman 358 / 229 ITR 383. We find that the said documents are crucial and go to the root of the matter, warranting proper verification. However, at this appellate stage, it is not feasible for us to undertake a complete verification of all the documents submitted as additional evidence. Accordingly, the matter is remitted to the file of the Ld. AO. The assessee is directed to place the additional evidence before the Assessing Officer, who shall examine the same and decide all issues afresh in accordance with law. Needless to state, the assessee shall be afforded a reasonable opportunity of being heard before the assessment is completed afresh. 6. In the result, the appeal of the assessee bearing ITA No.606/Coch/2025 is allowed for statistical purpose. Order pronounced in the open court on 24 /11/2025. Sd/- (INTURI RAMA RAO) Sd/- (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Kochi ,Ǒदनांक/Dated: 24/11/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथȸ/The Appellant , 2. ĤǓतवादȣ/ The Respondent. 3. आयकरआयुÈत CIT 4. ͪवभागीयĤǓतǓनͬध, आय.अपी.अͬध., मुंबई/DR, ITAT, Kochi 5. गाड[फाइल/Guard file. (Asstt. Registrar), ITAT, KOCHI Printed from counselvise.com "