SIVAPERUMAL RAVISHANKAR,TRICHY vs. ACIT NON CORPORATE CIRCLE-2(1), CHENNAI

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ITA 3426/CHNY/2019Status: DisposedITAT Chennai16 March 2022AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal felt that the assessee should be given another opportunity to defend the additions before the revenue authorities. Therefore, the matter was set aside to the CIT(A) for further adjudication.

What were the facts?

The assessee's appeal was filed with a delay, which was condoned. The Assessing Officer made additions related to agricultural income, P&L expenditure, and unverified sundry creditors. The CIT(A) upheld these additions ex-parte.

What were the issues?

Whether the assessee was provided with adequate opportunity to present their case before the lower authorities, particularly regarding the unverified sundry creditors.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI G. MANJUNATHA & SHRI. ANIKESH BANERJEE

Hearing: 10.03.2022Pronounced: 16.03.2022

आदेश /O R D E R

PER ANIKESH BANERJEE, JUDICIAL MEMBER:

1.

The instant appeal was filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-2 / Chennai [in brevity Ld. CIT(A)] bearing order no dated 30.09.2019.

:-2-: ITA. No: 3426/Chny/2019 2. There is a 5 days delay in filing the appeal. The delay of 5 days is condoned in the interests of justice.

3.

In brief, the assessment was made by the Ld. Assistant Commissioner of Income Tax, Non Corporate Circle -2, Chennai [in brevity ‘the AO’] u/s. 143(3) of the Income Tax Act, 1961 (in brevity “the Act”). The assessee filed its return under loss amount of Rs. 16,91,958/-. The additions were made amount of Rs. 7,04,955/- related to claim of agricultural income, amount of Rs. 95,22,585/- related to 50% of expenditure claimed on profit and loss and amount of Rs. 345,70,420/- related to unverified sundry creditors.

4.

After receiving the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) passed the order in exparte and upheld the additions of the Ld. AO. The Ld. CIT(A) allowed 3 dates on the date of 20.09.2019, 29.05.2019 and 22.05.2019, but none appeared before the appeal for hearing the matter.

5.

After receiving the order of the Ld. CIT(A), the assessee filed an appeal before this Tribunal.

6.

During the hearing, the additions in both the stages are not taken care by the authorities. Specifically, the sundry creditors amount

:-3-: ITA. No: 3426/Chny/2019 of Rs. 345,70,420/- is unverified in both the stages, before the assessing authority and appeal authority during the hearing.

7.

The Ld. DR relied on the order of the ld CIT(A). He has no objection for setting aside the matter to the Ld CIT(A).

8.

Considering the above facts, we feel that the assessee should get one more chance to defend the matter related to the additions before the revenue authority. So, the matter is setting aside before the ld. CIT(A) for further adjudication and to allow appropriate opportunity to assessee for this matter.

9.

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

Order pronounced in the court on 16th March, 2022 at Chennai.

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