TAMILNADU MEDICAL SERVICES CORPORATION LIMITED,CHENNAI vs. DCIT, CORP. CIRCLE-3)1), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi, dated 22.03.2023 relevant to the assessment year 2018-19.

The appeal filed by the assessee is delayed by 9 days in filing the appeal, for which, the assessee has filed petition in the form of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection. Consequently, since the assessee was prevented by sufficient cause, the delay in filing of the appeal stands condoned and the appeal is admitted for adjudication.

Brief facts of the case are that the assessee is a Public Sector Undertaking wholly owned by the Government of Tamil Nadu and filed its return of income for the assessment year 2018-19 on 03.10.2018 admitting loss of ₹.1,08,13,641/-. The return filed by the assessee was selected for scrutiny through CASS and notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] dated 22.09.2019 was duly served on the assessee. Thereafter, notice under section 142(1) of the Act has been issued on the assessee on 21.12.2020, 22.12.2020, 21.01.2021, 09.03.2021, 10.03.2021 and show cause dated 01.04.2021. The assessee has not furnished any reply to any notices issued by the Assessing Officer. Hence, the Assessing Officer has completed the assessment order under section 143(3) r.w.s. 144B of the Act dated 23.04.2021 and made additions. On appeal, since the assessee has not adduced any evidence to substantiate his claim, despite various hearing notices issued on the assessee, the ld. CIT(A) confirmed the additions.

On being aggrieved, the assessee is in appeal before the Tribunal. When the appeal was taken up for hearing, the ld. Counsel for the assessee has submitted that due to outbreak of Covid-19 pandemic and thereby total lockdown imposed by the Central/State Government, the assessee was not able to file the details before the Assessing Officer. Even before the ld. CIT(A) also, the assessee was not able to file any details and thus, the ld. Counsel for the assessee has prayed that the assessee may be afforded one more opportunity of being heard to the assessee.

On the other hand, the ld. DR supported the orders of authorities below.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below and find that the addition made by the Assessing Officer was confirmed by the ld. CIT(A) on the ground that no documentary evidence/details were filed before the ld. CIT(A). In this case, the Assessing Officer has completed the assessment order under section 143(3) r.w.s. 144B of the Act dated 23.04.2021 and made additions. The assessee, being a Public Sector Undertaking wholly owned by the Government of Tamil Nadu and was procuring and distributing drugs and medicine to various Government Hospitals on behalf of the Government of Tamil Nadu and running of high-tech diagnostic facilities such as CT and MRI Scanning. During the course of Covid-19 pandemic, the assessee was assisting the State Government in timely supply of drugs and other necessary items and could not able to furnish the details and substantiate its case before the Assessing Officer. Moreover, we find that the assessment proceedings were carried out by issuing various notices during the period of Covid-19 pandemic. Under the above facts and circumstances and considering the prayer of the ld. Counsel and in order to meet the ends of natural justice, we are of the considered opinion that the assessee shall be afforded one more opportunity of being heard to substantiate its case before the Assessing Officer. Accordingly, we set aside the exparte appellate order and remit the matter back to the file of the Assessing Officer to afford one more opportunity of being heard to the assessee to substantiate its case with suitable explanation and evidences and thereafter decide the issue in accordance with law.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 10th November, 2023 at Chennai.