Loading judgment…
Facts
The assessee appealed against a best judgment assessment for AY 2015-16 framed under Sections 147, 144, and 144B. The assessee had not appeared before any lower authorities, and the first appeal to CIT(A) was dismissed due to a 130-day delay in filing. The present appeal to the Tribunal also had a minor delay, which was condoned.
Held
Recognizing the assessee's negligence but upholding the principle of natural justice, the Tribunal decided to grant another opportunity. It set aside the impugned order and restored the assessment to the AO for fresh consideration, with the condition that the assessee pays Rs.2,000/- to the 'Tamil Nadu State Legal Services Authority'.
Key Issues
Whether to grant the assessee another opportunity for hearing before the Assessing Officer despite prior negligence, by setting aside the assessment and remanding it for de novo consideration under the principle of natural justice.
Sections Cited
147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा*रण वष* / Assessment Year: 2015-16) Shri Veeramani ITO बनाम/ 1/326, Housing Board, Ward-2 Vs. Millerpuram, Tuticorin-628 008. Tuticorin. �थायीलेखासं./जीआइआरसं./PAN/TAN No. AJOPV-9442-J (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri Girish Kumar (Advocate) - Ld. AR ��थ�कीओरसे/Respondent by : Smt. D. Babitha (JCIT) -Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-01-2025 घोषणाकीतारीख /Date of Pronouncement : 03-02-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-08- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 147 r.w.s. 144 r.w.s. 144B of the Act on 04-01-2024. The registry has noted delay of 5 days in the appeal which stands condoned. The assessee has failed to appear before any of the lower authorities. It could also be seen that the first appeal was filed with delay 130 days. Finding no reasonable cause, the appeal was not admitted by first appellate authority. Aggrieved, the assessee is in further appeal before us. The Ld. AR has prayed for another opportunity of hearing before lower authorities which has been opposed by revenue.
Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Therefore, we set aside the impugned order and restore the assessment back to the file of Ld. AO for fresh consideration. The same shall come at a cost of Rs.2,000/- 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 shall be furnished by the assessee to Ld. AO who shall proceed for de novo assessment. The assessee is directed to substantiate its case forthwith.
The appeal stand allowed for statistical purposes. Order pronounced on 3rd February, 2025