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Facts
The assessee's appeal for Assessment Year 2012-13 arose from an order of the CIT(A) which confirmed the assessment as the assessee failed to appear during the first appeal. The assessee is now in further appeal before the Tribunal.
Held
The Tribunal noted that the assessee failed to substantiate its case during the first appeal. However, in the interest of natural justice, the Tribunal accepted the plea for another opportunity of hearing.
Key Issues
Whether the assessee should be given another opportunity of hearing before the CIT(A) for de novo adjudication, considering the failure to appear in the first appeal.
Sections Cited
40A (3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI S.S. VISWANETHRA RAVI, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा)रण वष) / Assessment Year: 2012-13) A.D. Jeyaveerapandia Nadar & Bros. ACIT बनाम 31, 3rd Main Road, Kotturpuram, Non-Corporate Circle-1, / Vs. Chennai-600 085. Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AAAFJ-3044-K (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri R. Vishnu Jayaram (Advocate)- Ld.AR � थ�कीओरसे/Respondent by : Shri R. Raghupathy (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) 2012-13 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 15-07- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 24-03-2015. The registry has noted 27 days delay in the appeal, which stands condoned. The grievance of the assessee is two-fold – (i) Disallowance of expenses u/s. 40A (3) for Rs.19.06 Lacs ; (ii) Disallowance of expenditure for Rs.65.55 Lacs.
It could be seen that the assessee failed to appear during first appeal and accordingly, the assessment was confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for another opportunity of hearing which has been opposed by revenue.
It is evident that the assessee has failed to substantiate its stand during first appeal. However, keeping in mind the principles of natural justice, we accept the prayer of Ld. AR. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case.
The appeal stand allowed for statistical purposes. Order pronounced on 31st December, 2024