K S PLASTOCHEM INC,CHENNAI, TAMIL NADU vs. ACIT NON CORPORATE CIRCLE 7(1) CHENNAI, CHENNAI

ITA 2805/CHNY/2026Status: DisposedITAT Chennai06 August 2026AY 2022-20233 pages

AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of natural justice, decided to give the assessee another opportunity. The appeal was remitted back to the AO to consider the additional evidence and further details required.

What were the facts?

The assessee, a partnership firm, failed to respond to notices from the Assessing Officer (AO) regarding unsecured loans. The AO completed the assessment ex-parte, and the Commissioner (Appeals) upheld the addition, rejecting additional evidence submitted by the assessee.

What were the issues?

Whether the Commissioner (Appeals) was justified in rejecting the additional evidence without proper consideration, and whether the assessee should be granted a further opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI GEORGE GEORGE K & MS. PADMAVATHY.S

For Respondent: Ms. V.Supraja, Addl. CIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M:

This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 10.03.2026 for Assessment Year (AY) 2022-23.

The assessee is a partnership firm and filed the return of income u/s. 139(8A) of the Act on 03.06.2023 declaring total income of Rs. 6,45,330/-.

ITA No.2805/Chny/2026 KS Plastochem Inc. :- 2 -:

The case was selected for scrutiny and the statutory notices were duly served on the assessee. During the course of assessment proceedings, the A.O issued several notices seeking details and explanations regarding the unsecured loans amounting to Rs. 1,12,22,641/-. Since the assessee did not respond, the A.O completed the assessment u/s. 144 assessing the income at Rs. 1,18,67,971/-. Aggrieved, the assessee filed further appeal before the CIT(A). Before the CIT(A), the assessee submitted additional evidences under Rule 46A of the Rules. The CIT(A) however did not accept the additional evidences and proceeded to sustain the addition made by the A.O. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee's counsel did not provide proper support to the assessee. The Ld. AR further submitted that in the final show cause notice was issued, the assessee was provided a very short time for submission and hence the assessee could not submit the details. We notice that the CIT(A) rejected the petition filed under Rule 46A for submission of additional evidence stating there is not reason as why the said details could not be submitted before the AO. Considering the facts and circumstances peculiar to assessee's case, we are inclined to give one more opportunity to the assessee in the interest of natural justice and fair play to represent the case properly by producing the required details. Accordingly, we remit the appeal back to the AO with a direction to consider the additional evidences submitted by the assessee and to call for any further details as may be required to decide the issue in accordance with law. The assessee is directed to submit the necessary details

ITA No.2805/Chny/2026 KS Plastochem Inc. :- 3 -:

as may be called for and cooperate with assessment proceedings. It is ordered accordingly.

In result the appeal of the assessee is allowed for statistical purposes.

Order pronounced on 06th day of August, 2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (पदमावती यस) (Padmavathy.S) (George George K) उपा�� / Vice President लेखा सद�य लेखा सद�य सद�य /Accountant Member सद�य लेखा लेखा चे�नई/Chennai, �दनांक/Dated: 06th August, 2026. EDN, Sr. P.S EJTADA Digitally signed by EJTADA DURGA DURGA आदेश क� �ितिल�प अ�े�षत/Copy to: NARESH Date: 2026.08.10 1. अपीलाथ�/Appellant NARESH 11:52:33 +05'30' 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF

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