MUTHUSAMY THANGARASU,NAMAKKAL vs. ITO,WARD-1, NAMAKKAL

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ITA 1163/CHNY/2023Status: DisposedITAT Chennai08 February 2024AY 2009-10Bench: HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the principle of natural justice, set aside the impugned order and directed the Assessing Officer to make a de novo assessment. The assessee was directed to substantiate its case.

What were the facts?

The assessee failed to file a return of income and make any representation during assessment proceedings. The Assessing Officer made additions on a best judgment basis, including peak credit for bank accounts and estimated income under Section 44AD.

What were the issues?

Whether the assessment order passed on best judgment basis without proper representation from the assessee warrants a de novo assessment for ensuring natural justice.

Which sections of the Income-tax Act were involved?

Section 144,Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: Shri P. Sajit Kumar (JCIT)- Ld. Sr. DR

सुनवाईकीतारीख/Date of final Hearing : 08-02-2024 घोषणाकीतारीख /Date of Pronouncement : 08-02-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee arises out of an order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 15-09-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 29-12-2017.

2.

Upon perusal of assessment order, it could be seen that Ld. AO made peak credit addition for bank accounts and also estimated income u/s 44AD on cheque payments. The assessee failed to make any representation during assessment proceedings. No return of income was filed by the assessee. The position remained, more or less, the same during appellate proceedings and accordingly, substantial additions were confirmed against which the assessee is in further appeal before us.

3.

The Ld. AR, at the outset, pleaded for another opportunity of hearing which has been opposed by Ld. Sr. DR. Keeping in mind the principle of natural justice, the bench deems it fit to set aside the impugned order and direct Ld. AO make de novo assessment. The assessee is directed to substantiate its case.

4.

The appeal stand allowed for statistical purposes. Order pronounced in open court on 8th February, 2024.

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