What did the Tribunal hold?

The Tribunal, considering the principle of natural justice, decided to grant the assessee another opportunity to present its case. The impugned order was set aside, and the matter was restored to the AO for a fresh assessment.

The assessee's appeal arose from an ex-parte order where the Assessing Officer (AO) made an addition of 8% on cash deposited. The CIT(A) confirmed this addition as the assessee failed to make a representation.

What were the issues?

Whether the assessee should be granted another opportunity for a de novo assessment due to an ex-parte order and failure to represent before lower authorities.

Mydeen Batcha Shek Alaudheen… vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI ABY T. VARKEY, JM & 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 �ी एबी टी. वक�, �ाियक सद" एवं माननीय �ी मनोज कुमार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रण वष* / Assessment Year: 2017-18) Mr. Mydeen Batcha Sheik Alaudheen ITO 1452, Abdulla Agencies Ward-2, बनाम/ Thanjavur Main Road, Pudukottai. Vs. Gandharvakottai-613 301. Thanjavur Dist. �थायीलेखासं./जीआइआरसं./PAN/GIR No. ELCPS-9589-D (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Shri K.Meenakshisundaram (ITP)-Ld. AR � थ�कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT) -Ld. DR सुनवाईकीतारीख/Date of Hearing : 22-05-2024 घोषणाकीतारीख /Date of Pronouncement : 03-06-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 09-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 30-12-2019.

The registry has noted a delay of 16 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee. Considering the contents of affidavit and period of delay, the delay is condoned and we proceed for disposal of the appeal on merits.

The impugned order is an ex-parte order. In the assessment order, Ld. AO estimated addition @8% on cash deposited by the assessee. The Ld. CIT(A) confirmed the same since the assessee failed to make any representation therein. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for another opportunity of hearing before lower authorities 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. Therefore, the impugned order is set aside and the matter is restored back to the file of Ld. AO for de novo assessment after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case and supply the requisite information failing which Ld. AO shall be at liberty to frame the assessment on the basis of material on record.

The appeal stand allowed for statistical purposes. Order pronounced on 3rd June, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) �ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :03-06-2024 DS आदेशकीJितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT Chennai/Madurai/Trichy/Salem. 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

MYDEEN BATCHA SHEK ALAUDHEEN,THANJAVUR vs. ITO,WARD-2, PUDUKOTTAI

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