M/S EMGEE ENGINEERING AND CONSTRUCTION PVT.LTD.,CHENNAI vs. ACIT,CORPORATE CIRCLE2(1), CHENNAI

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ITA 894/CHNY/2020Status: DisposedITAT Chennai21 March 2022AY 2013-143 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's negligence, set aside the impugned orders to provide another opportunity for hearing. The matters were restored to the Assessing Officer for de novo assessment.

What were the facts?

The assessee failed to appear for hearings before the ITAT and the lower appellate authorities. The appeals concerned disallowances under Section 40(a)(ia) and rejection of books of accounts for multiple assessment years.

What were the issues?

Whether the assessee should be given another opportunity to present its case despite repeated non-appearance before appellate authorities.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Appellant: Shri G. Johnson (ACIT) –Ld. DR
For Respondent: Shri G. Johnson (ACIT) –Ld. DR

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2013- 14, 2014-15 & 2015-16 arises out of separate orders of first appellate authorities. None appeared for assessee. The Ld. Sr. DR pleaded for dismissal of the appeals on the ground that none appeared for assessee 895 & 896/Chny/2020 - 2 - even during first appellate proceedings and the impugned orders are ex- party orders.

2.

Upon perusal of assessment orders for AYs 2013-14 & 2014-15, it could be seen that the assessee was saddled with disallowance u/s 40(a)(ia) which formed subject matter of appeal before learned first appellate authority. In AY 2015-16, the books were rejected and the income was assessed @8%. Though the assessee filed further appeals, however, none appeared for assessee despite being provided with various opportunities of hearing as noted in the impugned orders. Accordingly, the assessment was upheld. Aggrieved, the assessee is in further appeal before us.

3.

Though we concur with the submissions of Ld. Sr. DR that the assessee has remained negligent in attending the appellate proceedings, however, keeping in mind the principle of natural justice, we deem it fit to provide another opportunity of hearing to the assessee. Accordingly, the impugned orders, for all the years, are set-aside and the issue of assessments is restored back to the file of learned Assessing Officer for denovo assessment in view of the fact that the issues involve reconciliation & production of books etc. The assessee is directed to attend assessment proceedings sand substantiate its case failing which Ld. AO shall be at liberty to proceed for assessment on the basis of material on record. .

4.

All the appeals stands allowed for statistical purposes. Order pronounced on 21st March, 2022. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 /VICE PRESIDENT लेखा सद< / ACCOUNTANT MEMBER ITA Nos.894, 895 & 896/Chny/2020 - 3 - चे*ई / Chennai; िदनांक / Dated : 21-03-2022 EDN/- आदेश की Xितिलिप अ9ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� (अपील)/CIT(A) 4. आयकर आयु�/CIT 5. िवभागीय �ितिनिध/DR 6. गाड� फाईल/GF

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