What did the Tribunal hold?

The tribunal, while noting the assessee's negligence, granted another opportunity for a de novo assessment on cost. The assessee must deposit Rs. 5,000/- to the Tamil Nadu State Legal Services Authority within 30 days and furnish proof to the AO.

The assessee's appeal for AY 2017-18 arose from an assessment framed under section 144 on a best judgment basis, with additions made to cash deposits, house property, and capital gains. The first appellate authority confirmed the assessment.

What were the issues?

Whether the assessee should be granted a further opportunity for a de novo assessment despite negligence, and under what conditions.

Alagu Solaimalai, Madurai 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) 2017- 18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 04-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Act on 17-12-2019. At the time of hearing, none appeared for assessee. However, it emerges that the assessment has been framed on best judgment basis making addition of cash deposit and certain other additions under the head House Property and Capital Gains. The position remained the same during first appellate proceedings and accordingly, the assessment was confirmed. Aggrieved, the assessee is in further appeal before us. The Ld. Sr. DR has pleaded for dismissal of the appeal.

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.5,000/- 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 merits.

The appeal stand allowed for statistical purposes. Order pronounced on 1st May, 2024 (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

ALAGU SOLAIMALAI,MADURAI vs. ITO CORPORATE WARD 3, MADURAI

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