YASHPAL SHARMA,CHENNAI V. ACIT CENTRAL CIRCLE 1(1), CHENNAI

ITA 689/CHNY/2023

AI Insights

The case involves three appeals filed by the assessee, Yashpal Sharma, against the orders of the Learned Commissioner of Income Tax (Appeals)-18, Chennai, for the Assessment Years 2018-19, 2019-20, and 2020-21. The appeals arose from a search and seizure operation conducted under section 132 of the Income Tax Act, 1961, and subsequent proceedings under section 153C of the Act. The Assessing Officer made substantial additions to the assessee's income for each of the assessment years, which were confirmed by the CIT(A). The assessee contested the adequacy of the opportunity provided for the assessment, leading to the Tribunal's decision to remit the matter back for re-adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107071 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILAY BARAN SOM
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Principle of natural justice
• Section: 143(2); 132; 153C

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी यस यस िव\u001cने\u001e रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.689, 690 & 691/Chny/2023 िनधा (रण वष( /Assessment Years: 2018-19, 2019-20 & 2020-21 Yashpal Sharma, Old No.129, A-4, Cathedral Garden Road, Near Gemini Flylover, Nungambakkam, Chennai – 600 034. Vs. The Asst. Commissioner of Income Tax, Central Circle-1(1), Chennai. [PAN: AALPY 9085A] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थ+ की ओर से/ Appellant by : Shri D. Anand, Advocate -.थ+ की ओर से /Respondent by : Shri Nilay Baran Som, CIT सुनवा ई की ता रीख/Date of Hearing : 03.12.2024 घोषणा की ता रीख /Date of Pronouncement : 26.02.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid three appeals filed by the assessee for Assessment Year (AYs) 2018-19, 2019-20 & 2020-21 arises out of the common orders of Learned Commissioner of Income Tax (Appeals)-18, Chennai [hereinafter “CIT(A)”] dated 30.03.2023. 2. The facts in all the appeals of the assessee are identical and issues are common hence, we proceed to pass a common order. For ITA Nos.689, 690 & 691/Chny/2023 :- 2 -: brevity, we shall take up the appeal in ITA No.689/Chny/2023 for A.Y 2018-19 as lead case. 3. The brief facts of the case are that the assessee is a Director in M/.s Radha Industries Pvt. Ltd., engaged in the business of trading of iron and steel products. The assessee is also a partner in a firm M/s. Radha Automobiles, which is a dealer of Hero Motors. A search and seizure operation u/s. 132 of the Act was conducted on 25.07.2019 in the cases of M/s. Sakthi Ferro Alloys India Pvt. Ltd., M/s. Sakthi Steel Industries Ltd., and assessee’s residential and business premises were also covered. The A.O of M/s. Sakthi Ferro Alloys India Pvt. Ltd. and M/s. Sakthi Ferro Alloys India Pvt. Ltd. and Sri Kanniah Naidu Anandh has forwarded satisfaction note u/s. 153C of the Act relating to the assessee based on which the A.O has initiated proceedings u/s. 153C of the Act. The AO in the assessment orders passed u/s 153C has made addition of Rs.2,54,92,935/- for A.Y 2018-19, Rs. 5,48,27,675/- for A.Y 2019-20, Rs. 106,95,22,730/- for A.Y 2020-21. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal the Ld. CIT(A) confirmed the additions made by the A.O. 4. The Ld. Authorized Representative (A.R) of the assessee, at outset prayed for setting aside the order of the Assessing Officer for ITA Nos.689, 690 & 691/Chny/2023 :- 3 -: re-adjudication, as the entire assessment proceedings was conducted in violation of principles of natural justice, and the assessee was not given adequate time and opportunity before the assessment order was passed. The Ld. AR submitted that proceeding of assessment was initiated by issuing a notice u/s. 153C of the Act to file the return of income on 09.09.2021, followed by a notice u/s. 143(2) of the Act on 13.09.2021. Subsequently, a show cause notice was issued on 23.09.2021, requiring assessee to respond by 24.09.2021, giving only one day to respond. The assessment order was passed on 30.09.2021. The Ld. AR has submitted that the entire assessment proceedings, from the issuance of notice to the completion of the assessment, has taken only 21 days, and huge addition has been made. The Ld. A.R, therefore, requested that the matter be remanded back to the Assessing Officer for proper adjudication. 5. The Ld. Departmental Representative (DR) could not controvert the submissions of Ld. AR that sufficient opportunity was not provided to the assessee. 6. We have heard the rival submissions, and perused the materials available on record. Upon reviewing of the orders of authorities below, we find that proceedings u/s. 153C of the Act were initiated by ITA Nos.689, 690 & 691/Chny/2023 :- 4 -: issuance of notice on 09.09.2021, and the assessment was completed on 30.09.2021 u/s. 153C r.w.s 144 of the Act. The A.O has given only one day time to respond the show cause notice before finalizing the search assessment. The assessee has raised this ground before Ld CIT(A), but the same has not been adjudicated. We find that sufficient opportunity was not provided to the assessee. Therefore, we set aside the orders passed by the lower authorities and remit the matter back to the file of the A.O for denovo adjudication, after providing the assessee a reasonable opportunity to present his case. We further direct the assessee to appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA Nos.690 & 691/Chny/2023 for AYs 2019-20 & 2020-21: 7. We find that the identical issues are involved in assessee’s appeals for A.Ys 2019-20 & 2020-21 also and accordingly, our adjudication above in A.Y 2018-19 applies mutatis mutandis to these cases as well. Therefore, for the similar reasons, we remit these matters to the file of A.O for denovo adjudication. ITA Nos.689, 690 & 691/Chny/2023 :- 5 -: 8. In the result, all the three appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 26th February, 2025. Sd/- Sd/- (यस यस िव\u001cने\u001e रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) ले ले ले लेखा खा खा खा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 26th February, 2025. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "