SEMBA GOUNDER SUBRAMANIAM SHANMUGAM,SALEM vs. THE INCOME TAX OFFICER WARD 1(3), SALEM

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 20-10-2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Act on 13-12-2019.

The registry has noted a delay of 31 days in the appeal, the condonation of which has been sought by Ld. AR. Considering the period of delay, the delay is condoned and we proceed with disposal of the appeal. 3. The only grievance of the assessee is confirmation of addition u/s 69A for Rs.14.72 Lacs. The assessment has been framed on best judgment basis. Upon perusal of para-5 of first appellate order, it is clear that the assessee failed to make any representation therein despite being provided with various opportunities. Accordingly, the appeal was dismissed for non-prosecution. 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. 4. 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 impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case. The same would come at a cost of Rs.2,000/- 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 CIT(A) who shall proceed for de novo adjudication after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.

The appeal stand allowed for statistical purposes. Order pronounced in open court on 17th April, 2024.