What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's negligence, granted another opportunity for hearing based on principles of natural justice. This opportunity is conditional upon the assessee depositing Rs. 2,000/- to the Tamil Nadu State Legal Services Authority within 30 days.

The assessee failed to make effective representations before lower authorities, leading to an assessment on a best judgment basis. The sole grievance was the confirmation of an addition of Rs. 10.29 Lacs.

What were the issues?

Whether the assessee should be granted a further opportunity to present their case despite prior negligence, and the implications of such an opportunity on the assessment proceedings.

Nanjappan Ramarathinam, Salem 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

आयकर अपीलीय अिधकरण “ए” �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय �ी महावीर िसंह, उपा ! एवं माननीय �ी मनोज कुमार अ%वाल ,लेखा सद( के सम!। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा)रण वष) / Assessment Year: 2017-18) Shri Nanjappan Ramarathinam ITO बनाम/ 119/A2,Theerthagiri Nagar Ward-1(1) Palacode-636 808. Dharmapuri. Vs. Dharmapuri Dist. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AIYPR-9019-G (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri T.S.Subramaniam (FCA)- Ld.AR � थ�कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 24-06-2024 घोषणाकीतारीख /Date of Pronouncement : 03-07-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

Aforesaid appeal by assessee arises out of an order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 06-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 29-12-2019. The sole grievance of the assessee is confirmation of addition of Rs.10.29 Lacs. The assessee has failed to make any effective representation before any of the lower authorities. The Ld. AR has pleaded 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. The same would come at a cost of Rs.2,000/- 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 de novo assessment after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. AO shall be at liberty to proceed with framing of assessment on the basis of material on record. 3. The appeal stand allowed for statistical purposes. Order pronounced on 3rd July, 2024 Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा45 / VICE PRESIDENT लेखा सद7 / ACCOUNTANT MEMBER चे9ई Chennai; िदनांक Dated :03-07-2024 DS आदेशकीIितिलिपअ%ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयुA/CIT Salem. 4. िवभागीय�ितिनिध/DR 5. गाडFफाईल/GF

NANJAPPAN RAMARATHINAM,SALEM vs. ITO, WARD 1(1), DHARMAPURI

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