Mohammad Firoz v. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, a trader of Electronic Goods, had deposited a sum of Rs.13,59,500/- in its bank account. The Assessing Officer issued a notice under section 142(1) of the Income Tax Act, 1961 requiring the assessee to file the return of income, which the assessee failed to do. The Assessing Officer then issued a notice under section 133(6) to the bank to furnish the bank account statement. After receiving the bank statement, the Assessing Officer issued a show cause notice to the assessee for passing best judgment assessment under section 144 of the Act. The assessee filed a Certificate of Registration and Allotment of TIN Certificate along with bank account statement and Tax Audit Report. The Assessing Officer observed that the assessee had a total credit/turnover of Rs.1,99,98,435/- from his business in the year under consideration and added net profit of 8% on the total turnover of Rs.1,99,98,435/- i.e. Rs.15,99,874/- to the total income of the assessee. The Assessing Officer also initiated penalty proceedings under section 271B of the Act and passed the order under section 144 of the Act. The assessee preferred appeal before the First Appellate Authority, which was dismissed by the Addl/JCIT(A)-2, Guwahati. The assessee then approached the Tribunal challenging the order of the Addl/JCIT(A)-2, Guwahati.…

Legal Issues

• 1. The Ld. Addl. Commissioner of Income Tax Appeals-2 Guwahati has erred in confirming the action of the Ld. A.O. while not confirming the addition of Rs.1599874.
• 2. The Ld. Addl. Commissioner of Income Tax Appeals-2 Guwahati has erred while not considering the audit report of the appellant.
• 3. The Ld. Addl. Commissioner of Income Tax Appeals-2 Guwahati has erred while not giving adequate opportunity.
• 4. The Ld. Addl. Commissioner of Income Tax Appeals-2 Guwahati has erred while initiating various penalties.

Judgment Outcome

Decided in favour of Assessee.

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