SUDHARSAN LOGISTICS PRIVATE LIMITED ,CHENNAI vs. ACIT, 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), New Delhi, dated 25.07.2022 relevant to the assessment year 2013-14.

The appeal filed by the assessee is delayed by three days in filing the appeal before the Tribunal. The assessee has filed a condonation petition in the form of an affidavit to condone the delay. Since the assessee was prevented by sufficient cause and the ld. DR has not made any serious objections, the delay in filing of the appeal stands condoned and admitted the appeal for adjudication.

Brief facts of the case are that the assessee filed its return of income on 31.10.2013 admitting total loss of ₹.2,55,83,275/-. After following due procedures, the Assessing Officer has completed the assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] dated 31.03.2016 by making disallowance under section 14A r.w. Rule 8D for ₹.11,75,118/-. On appeal, by order dated 26.09.2018, the ld. CIT(A) directed the Assessing Officer to verify the 26AS statements of the assessee and give credit of the prepaid taxes after verification and confirming the correctness of the prepaid taxes. The Assessing Officer, by following the above directions of the ld. CIT(A), by order dated 13.02.2019, observed and held as under: The ld. CIT(A) vide order mentioned above directed to verify the 26AS statement and give credit of the prepaid taxes after verification. In this regard the assessee was given an opportunity to appear with relevant documents in support of his claim on 06.02.2019. But it is seen from the office records that neither the assessee nor any authorized representative of the assessee arrived for hearing. Hence, giving effect to the CIT(A)’s order dated 26.09.2018 referred above the assessment order u/s 143(3) of the Income Tax Act 1961, dated 31.03.2016 is hereby passed as under: Particulars Amount (in INR) Assessed income as per the assessment order ₹.(-)2,44,08,157/- u/s 143(3) dated 31.03.2016 Less: Relief allowed by CIT(A) ₹.Nil Total income assessed as per this order ₹.(-)2,44,08,157/- The assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee as not maintainable.

On being aggrieved, the assessee is in appeal before the Tribunal. By filing reconciliation statement of books of accounts with Form 26AS, the ld. Counsel for the assessee has submitted that the assessee could not appear and furnish the details before the Assessing Officer to substantiate his case due to the circumstances beyond his control and the non-appearance is neither wilful nor wanton. Thus, the ld. Counsel for the assessee prayed for one more opportunity may be given to the assessee to substantiate his case before the Assessing Officer.

On the other hand, the ld. DR relied upon 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. On perusal of the order of the Assessing Officer giving effect to the order of the ld. CIT(A) dated 26.09.2018, by given one opportunity on 06.02.2019, the Assessing Officer hurriedly concluded the order dated 13.02.2019 by confirming the original assessment order passed under section 143(3) of the Act dated 31.03.2016 without any verification of pre-paid taxes and the ld. CIT(A) has not examined the actual facts. In view of the above, we are of the considered opinion that one more opportunity should be given to the assessee to substantiate his case before the Assessing Officer in the interest of natural justice. Accordingly, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to verify 26AS statement and give credit of the prepaid taxes after verification and decide the issue afresh in accordance with law. We also direct the assessee to appear before the Assessing Officer to explain his case with supporting evidences.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28th October, 2022 at Chennai.