What did the Tribunal hold?

The Tribunal, considering the principle of natural justice, granted the assessee another opportunity to present its case. The orders of the lower authorities were set aside, and the matter was restored to the Assessing Officer for a fresh assessment.

The Assessing Officer made an addition of Rs. 40.77 Lacs for unexplained expenditure due to non-disclosure of import purchases. The CIT(A) confirmed this addition. The assessee appealed this decision.

What were the issues?

Whether the addition for unexplained expenditure was justified without providing the assessee a proper opportunity to substantiate its case.

Langro India Private Limited vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

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

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018- 19 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 26-04-2021. In the assessment order, Ld. AO made addition of unexplained expenditure for Rs.40.77 Lacs on the allegation that the assessee did not disclose import purchases. The Ld. CIT(A) confirmed the same since the assessee did not make any representation therein. Aggrieved, the assessee is in further appeal before us. 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. Accordingly, the orders of lower authorities are set aside and the matter is restored back to Ld. AO 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 merits.

The appeal stand allowed for statistical purposes. Order pronounced on 1st May, 2024 Sd/- Sd/- (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) �ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 01-05-2024 DS आदेशकीRितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

LANGRO INDIA PRIVATE LIMITED,CHENNAI vs. ITO, CORPORATE WARD 4(3), CHENNAI

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