Apex Civil Engineering Vs. The Income Tax Officer, Non Corporate Circle-8(1), Chennai

Parties Involved

Facts Summary

The assessee, Apex Civil Engineering, a partnership firm engaged in contract work for the Government, filed its return of income for Assessment Year 2015-16 declaring a total income of Rs.1,72,33,900. The Assessing Officer (AO) reopened the assessment under section 148 of the Income Tax Act, 1961, based on the Tax Audit report, which indicated certain payments where no tax was deducted at source. Consequently, the AO made an addition under section 40(1)(ia) amounting to Rs.1,32,92,649. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), but there was a delay of 1248 days in filing this appeal. The assessee argued that they were unaware of the completion of the reassessment as the communication was sent to the email ID of the erstwhile tax consultant. The CIT(A) dismissed the appeal without condoning the delay. The assessee then appealed to the Tribunal against the order of the CIT(A).…

Legal Issues

• 1. Whether the order of the CIT(A) is without jurisdiction, contrary to law, facts, and circumstances of the case, and opposed to the principles of natural justice.
• 2. Whether the reassessment proceedings are bad in law and void ab initio as they were initiated merely on the basis of the Tax Audit Report already on record during the original assessment.
• 3. Whether the CIT(A) erred in not examining the merits of the disallowance under section 40(a)(ia), which was excessive and unjustified.

Judgment Outcome

Decided in favour of Assessee.

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