K.M. SPECIALITY HOSPITAL,CHENNAI vs. THE DCIT, NCC-19(1),, CHENNAI
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI MANOJ KUMAR AGGARWAL
आदेश / O R D E R
PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee (M/s.K.M. Specialty
Hospital) against the order of the Learned Commissioner of Income Tax
(Appeals)/NFAC, (hereinafter in short ‘the Ld.CIT(A)’), Delhi, dated
16.02.2024 for the Assessment Year (hereinafter in short ‘AY’) 2017-18.
The main grievance of the assessee is against action of the
Ld.CIT(A) who passed ex parte order without going into the merits of the
case. According to Ld AR, the impugned action was in violation of sub-
ITA No1070 /Chny/2024 (AY 2017-18) M/s.K.M. Specialty Hospital :: 2 ::
section (6) of section 250 of the Income Tax Act, 1961 (hereinafter in
short "the Act”). According to the assessee, he has not received notice of
hearing due to some glitches in the internet/computer. Therefore, he
prays for one more opportunity.
Per contra, the Ld.DR pointed out to Para No.5.1 of the CIT(A)’s
order and submitted that assessee failed to submit any evidence in
respect of Referral charges. Therefore, the Ld.CIT(A) had no other
alternative, but to confirm the action of the AO; and so, he doesn’t want
us to give one more innings to the assessee.
Having heard both the parties and after perusal of records, we note
that the Ld.CIT(A) had directed the assessee to produce evidence
regarding its claim of expense of referral charges to the tune of Rs
61,20,905/-. And despite such directions, assessee didn’t bother to file
any evidence to support its claim of expenditure in respect of referral
charges. In the absence of any evidence in respect of referral charges,
the Ld.CIT(A) has confirmed the action of the AO. However, according to
the assessee, it has not received any such directions from the Ld.CIT(A),
may be due to technical glitches. Be that as it may, we are of the
considered view that assessee should have been given proper opportunity
of hearing. Therefore, for the ends of justice and fair play, we set aside
the impugned order of the Ld.CIT(A) and restore the appeal back to the
ITA No1070 /Chny/2024 (AY 2017-18) M/s.K.M. Specialty Hospital :: 3 :: file of the Ld.CIT(A) with a direction to decide the appeal on merits after hearing the assessee. The assessee is also directed to be diligent and file relevant documents/written submissions including evidences related to referral charges before the Ld.CIT(A) and the Ld.CIT(A) to decide the issue as per sub-section (6) of sec.250 of the Act.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 27th day of June, 2024, in Chennai.
Sd/- Sd/- (मनोज कुमार अ�वाल) (एबी टी. वक�) (MANOJ KUMAR AGGARWAL) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 27th June, 2024. TLN, Sr.PS आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF
