M/S BALAJI ON BOARD COURIERS,CHENNAI vs. ITO NON CORPORATE WARD 3 (1), CHENNAI

This is an appeal filed by the Assessee against the order of the learned Commissioner of Income Tax (Appeals)-4, Chennai in ITA No.54/2016-17/A.Y.2013-14/CIT(A)-4, dated 20.09.2017 for the Assessment Year 2013-14.

It was a submission that the assessee is in the business of running a courier business. It was a submission that the assessee was unable to represent its case properly before the Assessing Officer. It was also a submission that even before the learned CIT(A), the assessee’s representation had latches and consequently the learned CIT(A) had dismissed the appeal of the assessee after granting number of opportunities to represent its case. It was a submission that the assessee’s Counsels were pre-occupied and had filed a writ petition on behalf of the assessee before the Hon’ble Jurisdictional High Court in respect of the issue of applicability of Section 40(a)(ia), in respect of the non-deduction of the TDS on the freight payment. It was a submission that the failure on the part of the assessee may be condoned and the assessee may be granted another opportunity to represent his claims before the Assessing Officer.

In reply, the learned Departmental Representative vehemently opposed the prayer of the assessee. It was a submission that before the Assessing Officer, eight opportunity had been given and before the learned CIT(A), six opportunities had been given and there was 3 -: absolutely no co-operation from the assessee. It was a submission that if the assessee is to be given another opportunity, punitive costs may be levied upon the assessee to a minimum of Rs.10,000/-.

We have considered the rival submissions and perused the materials available on record.

A perusal of the assessment order, as also the order of the learned CIT(A), clearly shows that the assessee has not used the substantial opportunities provided by both the Authorities below. In any case, considering the fact that the learned Authorized Representative on behalf of the assessee has given an explanation and also has admitted to the failure, and after taking into consideration the submissions of the learned Departmental Representative, in the interest of natural justice, we are of the view that the issues in this appeal are liable to be restored to the file of the Assessing Officer for re-adjudication after granting the assessee adequate opportunity to substantiate its claims before the Assessing Officer. This is ,however, subject to the condition that the assessee shall pay the cost of Rs.10,000/- to the Prime Minister Disaster Relief Fund within three months from the date of this order, and produce such receipt before the Assessing Officer. If the above said condition is not complied, then the order as passed by the learned CIT(A) shall stand confirmed.