K C SELVAM HUF, ERODE,ERODE vs. THE INCOME TAX OFFICER, WARD 2(1), ERODE, ERODE

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ITA 1842/CHNY/2025Status: DisposedITAT Chennai26 August 2025AY 2013-14Bench: SHRI MANU KUMAR GIRI (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, considering principles of natural justice, set aside the CIT(A)'s order and restored the appeal to the AO for a fresh hearing on merits. This was subject to a cost of Rs. 5,000/- to be deposited by the assessee with the Tamil Nadu State Legal Services Authority.

What were the facts?

The assessee, a Hindu Undivided family, had its case reopened for income escaping assessment. A notice under Section 148 was issued, and the Assessing Officer computed income at Rs. 1,07,09,387/- against Nil declared. The CIT(A) dismissed the appeal ex-parte due to non-response.

What were the issues?

Whether the assessee should be granted an opportunity for a fresh hearing before the AO after an ex-parte order from the CIT(A), and whether the appeal should be restored to the AO for a denovo assessment on merits.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: SHRI MANU KUMAR GIRI & SHRI AMITABH SHUKLA

Hearing: 26.08.2025Pronounced: 26.08.2025

आदेश / O R D E R

PER MANU KUMAR GIRI, JM:

1.

1. The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 19.07.2024 for Assessment Year 2013-14.

2.

The brief facts of the case are that the assessee is a Hindu Undivided family. The assessee’s case was reopened for income escaping assessment and a notice was issued u/s. 148 of the Act on 04.11.2019.

1.

The AO computed the total assessed income at Rs.1,07,09,387/- against Nil income declared. The ld. CIT(A) dismissed the appeal ex-parte as there was no response to the notices issued for hearing and filing submission.

3.

Aggrieved, assessee is in appeal before us.

4.

Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal.

5.

Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence.

Accordingly, the impugned order is set aside and the appeal is restored back to the file of the AO for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities.

6.

In the result, appeal filed by the assessee is allowed for statistical purpose.

Order pronounced in open court on the 26th day of August, 2025, in Chennai.

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