Mani Transport Company vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Mani Transport Company, did not file any income tax returns for the assessment year 2016-17. The Assessing Officer found that the assessee had received Rs.4.95 crores on which Tax was Deducted at Source (TDS) under section 194C. As no return of income was filed by the assessee, the Assessing Officer issued notices under sections 133(6) and 148 of the Income Tax Act. The assessee did not respond to these notices. Consequently, the Assessing Officer completed the assessment under section 144 of the Act by treating 8% of the total receipt as income, resulting in an addition of Rs.39.61 lakh. The Assessing Officer also levied penalties under sections 271F, 271(1)(b), and 271(1)(c) of the Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) on 10.01.2024, challenging the addition in the quantum assessment and the penalty levied. The appeal was dismissed for delay in filing. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the delay in filing the appeal before the Commissioner of Income Tax (Appeals) should be condoned?
• 2. Whether the Assessing Officer erred in reopening the assessment under section 147 by issuing notice under section 148?
• 3. Whether the Assessing Officer erred in making an addition of Rs.39,61,560/- under section 69A of the Income Tax Act?
• 4. Whether the penalty levied under sections 271(1)(c) and 271(1)(b) of the Income Tax Act should be sustained?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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