VGN PROJECTS ESTATES PVT. LTD.,CHENNAI vs. DCIT, CORPORATE CIRCLE-3(1), CHENNAI

The assessee is a company and filed a return of income for A.Y 2019- 2020 on 31.10.2019 decaling income u/s. 115JB of the Act for Rs.4,74,35,458/-. For AY 2020-21, the assessee field a return of income on & 2922/Chny/2025 VGN Projects Estates Pvt. Ltd. :- 2 -:

1. 15.02.2021 declaring total income of Rs. 56,49,980/-. The returns of the both the AYs were processed u/s. 143(1) of the Act after making certain adjustments over and above income returned. Against the intimation, the assessee filed rectification petition and the CPC passed an order u/s. 154 of the Act without making any adjustment made earlier order u/s. 143 of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). The CIT(A) dismissed the appeal stating that the disallowances/additions based on the tax audit report are not correct on the ground that the assessee has not substantiated the said claim. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the CPC has made the adjustments merely based on the tax audit report without giving the opportunity to the assessee to submit the details with regard to the observations of the auditor. The Ld. AR further submitted that even the rectification petition u/s. 154 of the Act was also dismissed without giving any opportunity of being heard. The Ld. AR also submitted that the assessee prayed for opportunity before the CIT(A) for video conferencing in order to explain the difference as mentioned in the tax audit report which was not given by the CIT(A) while dismissing the appeal. The ld AR submitted that the facts in both the AYs are identical and prayed for one more opportunity to represent the case properly before both the AYs. Considering the facts and circumstances, we are inclined to give one more opportunity to the assessee to represent both the appeals properly before the lower authorities. We therefore remit the appeals for AY 2019-20 & 2020-21 back to the CIT(A) with a direction to call for necessary details to decide the & 2922/Chny/2025 VGN Projects Estates Pvt. Ltd. :- 3 -:

impugned issues on merits in accordance with law. The assessee is directed to file relevant details in support of the claim made and cooperate with appellate proceedings without seeking unnecessary adjournment. It is ordered accordingly.

In the result, the appeal of the assessee for AY 2019-20 & 2020-21 are allowed for statistical purposes.