KANNAN,VIRUDHUNAGAR vs. ITO, WARD-1, , VIRUDHUNAGAR

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ITA 2569/CHNY/2024Status: DisposedITAT Chennai02 January 2025AY 2011-12Bench: HON’BLE SHRI S.S. VISWANETHRA RAVI (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, while noting the assessee's negligence and failure to substantiate the case before lower authorities, granted an opportunity to the assessee to present their case before the AO, keeping in mind the principle of natural justice. The impugned order was set aside and the assessment was restored for de novo assessment.

What were the facts?

The appeal by the assessee for AY 2011-12 arose from an order confirming an addition of Rs. 55.06 Lacs as unexplained cash credit. The assessee had failed to attend the first appellate proceedings, leading to the confirmation of the assessment.

What were the issues?

Whether the assessee should be granted another opportunity to substantiate their case before the AO after failing to appear before the appellate authorities, in the interest of natural justice.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI S.S. VISWANETHRA RAVI, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

(िनधा)रण वष) / Assessment Year: 2011-12) Shri Kannan ITO बनाम # 22/78, Edumbaneeravi Street, Ward-1 / Vs. Virudhunagar-626 001. Virudhunagar. �थायीलेखासं./जीआइआरसं./PAN/GIR No. BORPK-4251-H (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri P.M. Kathir (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri R. Raghupathy (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 18-12-2024 घोषणा की तारीख /Date of Pronouncement : 02-01-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10- 2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s.147 of the Act on 25-12-2018. The registry has noted delay of 283 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee. It has been stated that the assessee being illiterate persons was not versed with electronic communications. Considering the period of delay, we condone the delay.

2.

The sole grievance of the assessee is against confirmation of addition of Rs.55.06 Lacs as unexplained cash credit u/s.68 of the Act. Upon perusal of para-6.1 of impugned order, it could be seen that the assessee has failed to attend first appellate proceedings and accordingly, the assessment has been confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. AR has prayed for another opportunity of hearing which has been opposed by revenue.

3.

Though the assessee has remained negligent in substantiating its case during lower authorities, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case forthwith.

4.

The appeal stand allowed for statistical purposes. Order pronounced on 2nd January, 2025 Sd/- Sd/- (S. S. VISWANETHRA RAVI) (MANOJ KUMAR AGGARWAL) �ाियक सद! / JUDICIAL MEMBER लेखा सद! / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 02-01-2025 DS आदेशकीSितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT Madurai 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

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