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| The Tax Publishers2020 TaxPub(DT) 1409 (Chen-Trib) INCOME TAX ACT, 1961
Section 147
Where AO made addition on the ground that assessee could not produce books of accounts and other documents/records during assessment proceedings and in the remand report called for by CIT(A), AO accepted contention of assessee that it was due to flood/rains in Chennai that assessee could not produce its record to be fair and reasonable to both parties and to render justice,matter was restored to AO for verification afresh especially in view of the fact that copies of balance sheet and ITR, etc. were filed before CIT(A).
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Reassessment - Under sec. 147 - No verification of records furnished by assessee -
Assessee, a Senior Citizen claimed himself to be a freedom fighter and running an IOC Agency during the year, filed return of income originally with AO for assessment year 2011-12, but no return of income was originally filed for assessment year 2012-13.The case of assessee was reopened by Revenue by invoking section 147/148 for both assessment years 2011-12 and 2012-13. As assessee could not produce books of accounts and other documents/records during assessment proceedings, AO made additions on certain issues. Assessee's case was that owing to floods/rains in Chennai in December 2015 records/documents were damaged in rains/floods. Held: The factum of damage to records in floods/rains in Chennai was later proved to be correct as accepted by AO in remand report. Also, assessee during appellate proceedings filed reconstructed records including cash books, bank book etc. but CIT(A) dismissed appeal(s) filed by the assessee for both the assessment years. Later, assessee filed three rectifications petitions under section 154 Before CIT(A) ,the first two were dismissed as same were filed manually while third rectification petition under section 154 was e-filed which was later adjudicated on merits. CIT(A) called for remand report from AO wherein AO accepted contention of assessee that it was due to flood/rains in Chennai that assessee could not produce its record. The following documents were admittedly produced i.e. 1. Copy of letter, dated 17-5-2018 submitted to Income Tax Officer NCW 11(4). (PDF copy and editable word file) 2. Copy ITR ack assessment year 2011-12 3. Copy of Balance sheet for the financial year 2010-11 4. Copy of profit & loss account for the financial year 2010-11 5. Copy of IOB bank book and Cash book for the financial year 2010-11 Similar records were also produced for assessment year 2011-12 by assessee before CIT(A). No specific deficiencies were pointed out in the cash/bank books while generalized adverse comments were made. To be fair and reasonable to both parties and to render justice,matter was restored to AO for verification afresh.
REFERRED :
FAVOUR : In assessee's favour (by way of remand)
A.Y. :
IN THE ITAT, CHENNAI BENCH
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