BANU MODERN RICE MILL,CHENNAI vs. ITO, NCW-13(2), CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of an ex-parte order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-06-2024 in the matter of assessment framed by the Ld.AO u/s 143(3) of the Act on 31-12-2016. In the assessment order, Ld. AO made certain addition of Rs.18.99 Crores invoking the provisions of Sec. 40A(3). The same reached to Tribunal wherein, vide order dated 24-08- 2022, the issue was restored back to the file of Ld. CIT(A) for fresh adjudication. However, the assessee failed to appear even during set aside proceedings and accordingly, the assessment was confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. AR submitted that the assessee is dealing in rice which is agricultural produce and therefore, the aforesaid provisions may not apply to the assessee. The Ld. Sr. DR opposed any interference in the impugned order on the ground that the assessee has remained negligent.

Though the assessee has remained negligent in substantiating its case even as per the directions of Tribunal, however, keeping in mind the principle of natural justice as well as the arguments of Ld AR, we accept the prayer of Ld. AR and restore the assessment back to the file of Ld. AO. The same would come at a cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned AO who shall proceed for framing of assessment afresh. The assessee is directed to substantiate its case forthwith.

The appeal stand allowed for statistical purposes. Order pronounced on 9th October, 2024