AMMASAI KARUPPANAN SHANMUGAM,ERODE vs. JCIT,RANGE-1, ERODE

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ITA 1170/CHNY/2023Status: DisposedITAT Chennai20 December 2023AY 2017-182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal granted the assessee another opportunity of hearing before the lower authorities, considering the principle of natural justice. This opportunity is conditional upon the assessee depositing Rs. 5,000/- and substantiating their case.

What were the facts?

The assessee is in appeal against a penalty of Rs. 27.00 Lacs confirmed under Section 271E for AY 2017-18. The penalty was levied for repayment of a loan in cash, contravening Section 269T.

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the lower authorities, and if so, under what conditions.

Which sections of the Income-tax Act were involved?

Section 271E,Section 269T

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANOMOHAN DAS

आयकरअपील सं./ (िनधा?रण वष? / Assessment Year: 2017-18) Shri Ammasai Karuppanan Shanmugam JCIT बनाम/ 107, Thangaperumal Street, Range-1 Kallukadaimedu,105-6B, Erode-638 001. Erode. Vs. �थायीलेखासं./जीआइआरसं./PAN/GIR No. APGPS-5464-P (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri S.Sridhar (Advocate) Erode -Ld. AR � थ�कीओरसे/Respondent by : Shri N.S.Phanidharan (JCIT)-Ld. DR सुनवाईकीतारीख/Date of Hearing : 20-12-2023 घोषणाकीतारीख /Date of Pronouncement : 20-12-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271E for Rs.27.00 Lacs for Assessment Year (AY) 2017-18 by first appellate authority vide impugned order dated 19-08-2023, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 19-08-2023 in the matter of impugned penalty levied by Ld. Assessing Officer [AO] u/s. 271E of the Act vide order dated 09-03-2022 for repayment of loan amounting to Rs.27.00 Lacs in cash during financial year 2016-17, which is stated to be in contravention of provisions of section 269T.

2.

The Ld. AR, appearing for assessee, sought another opportunity of hearing before lower authorities since the assessee failed to make any representation before lower authorities. The Ld. AR also undertook to substantiate its case in case another opportunity was given. The Ld. Sr. DR opposed the same. Keeping in mind the principle of natural justice, the bench deems it fit to grant another opportunity of hearing to the assessee. However, this would come at a cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of the order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned Assessing Officer who shall proceed to frame penalty order de novo after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case.

3.

The appeal stand allowed for statistical purpose. Order pronounced in open court on 20th December, 2023.

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