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Facts
The assessee filed an appeal for AY 2011-12, challenging an order that disallowed purchases of Rs. 93.76 Lacs and added loans of Rs. 39.52 Lacs due to lack of evidence. The assessee failed to present their case effectively in the first appeal.
Held
The Tribunal, while acknowledging the assessee's negligence, decided to grant another opportunity based on the principle of natural justice. The additional evidence was admitted, the impugned order was set aside, and the assessment was restored to the AO for a de novo assessment.
Key Issues
Whether to admit additional evidence and grant a fresh opportunity for assessment, despite the assessee's prior negligence.
Sections Cited
143(3), 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM
(िनधा)रण वष) / Assessment Year: 2011-12) Shri Appusamy Giriraj ITO बनाम #56/111/YA Ganeshapuram Middle Ward-1 Street, South Puliyur Post, Karur. / Vs. Karur-639 114. �थायीलेखासं./जीआइआरसं./PAN/GIR No. ALCPG-4312-J (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri N. Arjun Raj (Advocate) - Ld.AR � थ�कीओरसे/Respondent by : Ms. R. Kavitha (Addl.CIT) - Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 18-12-2024 घोषणा की तारीख /Date of Pronouncement : 31-12-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-07-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Act on 31-12-2018. In the assessment order, Ld. AO disallowed purchases for Rs.93.76 Lacs. The Ld. AO also added loans of Rs.39.52 Lacs for want of evidences from the assessee. During first appeal, the assessee failed to make any representation and accordingly, the assessment was confirmed. During hearing, Ld. AR has pleaded for admission of additional evidences and stated that the assessee is in a position to substantiate is case before lower authorities. The same has been opposed by Ld. Sr. DR.
Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Therefore, we admit the additional evidences and set aside the impugned order and restore the assessment back to the file of Ld. AO for de novo assessment with a direction to the assessee to substantiate its case and supply the requisite information forthwith.