What did the Tribunal hold?

The Tribunal, while noting the assessee's negligence, granted another opportunity for hearing in the interest of natural justice. The impugned orders were set aside, and the matters were restored to the CIT(A) for fresh adjudication.

The assessee failed to attend the first appellate proceedings, leading to the confirmation of the assessment and consequential penalty on a best judgment basis. The assessee is now appealing these orders.

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the appellate authority, despite prior non-appearance. The consequential impact on the assessment and penalty.

Sri Balaji Dairy Firm, Vellore vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Heard together (2 matters)

ITA No.1299/Chny/2024

ITA No.1300/Chny/2024

Read from the judgment's own cause title. This page is filed under one of them.

Manoj Kumar Aggarwal (Accountant Member) 1. is quantum appeal whereas ITA No.1300/Chny/2024 is penalty appeal which arise out of separate orders of learned first appellate authority both dated 18-03-2024. Upon perusal of para-3 of impugned order in quantum appeal, it could be seen that the assessee has failed to attend first appellate proceedings. Accordingly, the assessment was confirmed. The consequential penalty was also confirmed vide separate order. It is also noted that the assessment was framed on best judgment basis. Aggrieved, the assessee is in further appeal before us. The Ld. AR has prayed for another opportunity of hearing which 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. Accordingly, the impugned orders are set aside and the issue of assessment as well as consequential penalty stand restored back to the file of Ld. CIT(A) for de novo adjudication after affording opportunity of hearing to the assessee. All the issues are kept open. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with disposal of appeals on merits on the basis of material on record.

Both the appeals stand allowed for statistical purposes. Order pronounced on 8th August, 2024 (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा34 / VICE PRESIDENT लेखा सद6 / ACCOUNTANT MEMBER चे8ई Chennai; िदनांक Dated :08-08-2024 DS आदेशकीJितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant

" थ"/Respondent 3. आयकरआयु@/CIT Chennai. 4. िवभागीय"ितिनिध/DR 5. गाडEफाईल/GF

SRI BALAJI DAIRY FIRM,VELLORE vs. ITO WARD 2, VELLORE

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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