SOLAR ENERGY EQUIPMENTS TECHNOLOGIES PRIVATE LIMITED,CHENNAI vs. CORP. WARD 6(3) CHENNAI, CHENNAI

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ITA 289/CHNY/2024Status: DisposedITAT Chennai21 May 2024AY 2016-2017Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT, while acknowledging the assessee's non-appearance before the CIT(A), set aside the order and restored the appeal to the CIT(A) for adjudication on merits, to uphold the principle of natural justice.

What were the facts?

The assessee company's appeal against additions made by the AO was confirmed by the CIT(A) as the assessee failed to appear. The assessee then filed an appeal before the ITAT.

What were the issues?

Whether the CIT(A) order confirming additions due to non-appearance is sustainable, and if the assessee should be granted another opportunity to present its case.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

Hearing: 15.05.2024Pronounced: 21.05.2024

आयकर अपीलीय अिधकरण ‘ए’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय �ी मनोज कुमार अ�वाल ,लेखा सद� एवं माननीय �ी मनु कुमार िग�र, �ाियक सद� के सम�। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा�रणवष� / Assessment Year: 2016-17) Solar Energy Equipments Technologies Vs. The Income Tax Officer, Private Limited, Corporate Ward 6(3) 3B (Western Road) Chennai. Old No. 4, New No.7, LVR Center, Seshadri Road, Alwarpet, Chennai 600 018. [PAN:AASCS 5557P] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : None ��यथ� क� ओर से /Respondent by : Shri. Nilay Baran Som, IRS, CIT. सुनवाई क� तार�ख/Date of Hearing : 15.05.2024 घोषणा क� तार�ख /Date of Pronouncement : 21.05.2024 आदेश / O R D E R MANU KUMAR GIRI (Judicial Member)

This appeal filed by the assessee is directed against the order No.ITBA/NFAC/S/250/2023-24/1059151105 (1) of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] dated 28.12.2023 for Assessment Year 2016-17. The assessment was completed by the Income Tax Officer, Corporate Ward 6(3), Chennai vide order dated 21.12.2018.

2.

The assessee is a private limited company. The appellant filed return declaring income of Rs.2,63,187/-. In assessment order u/s 143(3) of the Act dated 21.12.2018, the assessing officer (In short ‘AO’) has made following additions/disallowances: (i) Opening stock of Rs.9,46,18,103/-; (ii) 10% of purchases Rs.20,61,904/-; (iii)Addition on account of unexplained cash credit of Rs.1,45,34,663/-;

3.

Further, the appellant filed the appeal against the order under section 143(3) of the Act dated 21.12.2018 before the Ld. CIT(A) wherein the assessee did not appear before the first appeal authority. Accordingly, the assessment was confirmed on merits against which assessee is in further appeal before us.

4.

Before us, none appeared for the assessee. The Ld. Sr. DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the ld. first appellate authority.

5.

Though we appreciate the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for adjudication on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.

6.

In the result, appeal filed by the assessee in for assessment year 2016-2017 is allowed for statistical purpose.

Order pronounced on 21st day of May, 2024 at Chennai.

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