MARKANDAN KRISHNARAJU RAJU,SALEM vs. ITO, WARD- 1(2), SALEM, SALEM

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ITA 154/CHNY/2024Status: DisposedITAT Chennai17 April 2024AY 2017-18Bench: 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 Tribunal, while acknowledging the assessee's negligence, granted another opportunity for the assessee to present its case, setting aside the impugned order. The matter was restored to the Assessing Officer for de novo assessment.

What were the facts?

The assessee's appeal for AY 2017-18 concerns the confirmation of an addition of Rs. 36.65 Lacs. The assessment was made on a best judgment basis as the assessee failed to provide necessary details, and this position was maintained in the first appellate proceedings.

What were the issues?

Whether the assessee should be granted another opportunity to substantiate its case despite previous negligence, and the implications of a best judgment assessment.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

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

आयकर अपीलीय अिधकरण ‘सी’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद3 एवं माननीय +ी मनु कुमार िग7र, "ाियक सद3 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा9रणवष9 / Assessment Year: 2017-18) Shri Markandan Krishnaraju Raju ITO बनाम/ Vs. 1A, Govindan Street, Ward-1(2) Arisipalayam, Salem-636 009. Salem. "थायीलेखासं./जीआइआरसं./PAN/GIR No. BRLPR-1762-F (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Appellant by : Shri T.S. Lakshmi Venkatraman (FCA)-Ld.AR " थ"कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 17-04-2024 घोषणा की तारीख /Date of Pronouncement : 17-04-2024 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 the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 29-11-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Act on 25-09-2019. The grievance of the assessee is confirmation of addition of Rs.36.65 Lacs.

2.

It emerges that the assessment has been made on best judgment basis since the assessee did not furnish the requisite details. 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. AR has pleaded for another opportunity of hearing which has been opposed by Ld. Sr. DR. 3. 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 matter is restored back to Ld. AO for de novo assessment with a direction 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 assessment on merits. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 17th April, 2024. (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद3 / JUDICIAL MEMBER लेखा सद3 / ACCOUNTANT MEMBER चे3ई Chennai; िदनांक Dated : 17-04-2024 DS आदेशकीTितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु</CIT 4. िवभागीय"ितिनिध/DR 5. गाडAफाईल/GF

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