SAMIAPPAAN SUNDARAM,ERODE vs. ITO, WARD -2(1), ERODE

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ITA 803/CHNY/2023Status: DisposedITAT Chennai28 August 2023AY 2010-112 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the assessment to the file of the AO for de novo assessment, providing another opportunity for the assessee to substantiate its case and file requisite documents, adhering to the principle of natural justice.

What were the facts?

The assessee failed to appear before the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)). The AO made an addition of Rs. 10.93 Lacs on account of peak credit of bank deposit on a best judgment basis.

What were the issues?

Whether the assessment made on a best judgment basis without the assessee's participation should be set aside to allow for proper representation and substantiation of the case.

Which sections of the Income-tax Act were involved?

Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 09-06-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s 147 of the Act on 31-12-2018. The only prayer of Ld. AR is to restore the assessment to the file of Ld. AO since the assessment is on best judgment basis and the assessee failed to appear during appellate proceedings.

2.

From assessment order, it could be seen that Ld. AO made addition of peak credit of Rs.10.93 Lacs on bank deposit since the assessee failed to make any representation. The ld. CIT(A) confirmed the same on the same ground. Keeping in mind the principle of natural justice, we deem it fit to provide another opportunity of hearing to the assessee. Accordingly, the assessment stand restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case and file the requisite documents forthwith.

3.

The appeal stand allowed for statistical purposes. Order pronounced on 28th August, 2023. Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद /JUDICIAL MEMBER लेखासद / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 28-08-2023 DS आदेशकीVितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. !"थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय!ितिनिध/DR 5. गाडBफाईल/GF

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