SMT. SHIVAKUMAR CHITRA,CHENNAI vs. ITO, CORPORATE WARD-1(1), CHENNAI

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 20-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 22-03-2022. The assessment has been framed on best judgment basis and Ld. AO made addition of Rs.352.78 Lacs. The assessee preferred further appeal with a delay of 272 days. It was submitted that delay was on account of change of auditor. The earlier Chartered Accountant did not follow assessee about the hearing notices and the assessee was not aware of the proceedings. However, Ld. CIT(A) rejected the same on the ground that the assessee did not act diligently. Aggrieved, the assessee is in further appeal before us. The Ld. AR has pleaded for adjudication of appeal on merits 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 impugned order is set aside and the assessment is restored back to the file of 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 the assessment on merits. 3. 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 आदेशकीRितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु</CIT 4. िवभागीय"ितिनिध/DR 5. गाडAफाईल/GF