ASSISTANT COMMISSIONER OF INCOME TAX, CHENNAI V. INTEGRATED SOLUTIONS AND ENTERPRISES, CHENNAI

ITA 1948/CHNY/2024

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax against the order of the Learned Commissioner of Income Tax (Appeals), which had confirmed a disallowance of Rs.10,00,000 but deleted the addition of Rs.23,11,45,100. The original assessment was made under section 144 of the Income-tax Act, 1961, due to non-response from the assessee to notices. The Tribunal found that the CIT(A) had not provided a basis for the adhoc disallowances and had not adequately addressed the non-compliance of the assessee in providing necessary documentation to substantiate the expenditures claimed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107238 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Keywords: Set aside
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001f, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1948/Chny/2024 िनधा:रण वष: /Assessment Year: 2017-18 The Asst. Commissioner of Income Tax, Non Corporate Circle-19(1), Chennai. Vs. Integrated Solutions and Enterprises, 16, MMTC, Nanganallur, Chennai – 600 061. [PAN: AAEFI 6873P] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001f की ओर से/ Assessee by : None HIथ\u001f की ओर से /Revenue by : Shri R. Clement Ramesh Kumar, CIT सुनवाई की तारीख/Date of Hearing : 09.01.2025 घोषणा की तारीख /Date of Pronouncement : 29.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.06.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 r.w.s 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 23.12.2019. ITA No.1948/Chny/2024 :- 2 -: 2. The case ase was fixed for hearing on 09.10.2024, 05.11.2024, 19.11.2024, 04.12.2024 but none appeared from the side of appellant assessee. When the appeal was called for hearing again on 09.01.2025 , none appeared on behalf of the assessee, we therefore proceed to adjudicate the case accordingly, with the able assistance of Ld. D.R, Shri R. Clement Ramesh Kumar, CIT. 3. The assessee is a partnership firm and filed its return of income declaring total income of Rs.17,66,150/- on 31.10.2017. Subsequently the case was reopened u/s. 147 of the Act. The assessee has not responded notices issued by A.O therefore, the A.O has disallowed the entire expenditure of Rs.23,11,45,100/- in the order passed u/s. 144 of the Act. On appeal, the Ld. CIT(A) has issued four notices, but the assessee did not file any response and the Ld. CIT(A) passed ex-parte order confirming the disallowance to the extent of Rs.10,00,000/-. The revenue is in appeal against deleting the addition of Rs 23,11,45,100. 4. The Ld. Departmental Representative (DR) has argued that the assessee has not furnished any evidence in support of the expenditure and therefore, the A.O has disallowed the expenditure. The Ld DR ITA No.1948/Chny/2024 :- 3 -: argued that onus is on the assessee to substantiate expenditure with documentary evidences. The Ld. DR submitted that the Ld. CIT(A) has clearly noted that the assessee has not filed copies of bills neither during assessment proceedings, nor during appellate proceedings still he has deleted the addition of Rs 23,11,45,100/- and restricted it to Rs.10,00,000/- without giving any basis of such adhoc disallowances. 5. We have perused the materials available on record and find that the orders of Ld. CIT(A) is ex-parte. The Ld CIT(A) has clearly noted that the assessee has not filed copies of bills neither during assessment proceedings, nor during appellate proceedings still has deleted the addition of Rs 23,11,45,100. The Ld. CIT(A) has restricted the disallowances to Rs.10,00,000/-, but has not given any basis of such disallowances. We, therefore set aside the order of Ld CIT(A) and direct him to pass fresh order after providing proper opportunity to assessee. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the revenue is allowed for statistical purposes. ITA No.1948/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the revenue is allowed for statistical purposes. Order pronounced on 29th January, 2025. Sd/- Sd/- (एबी टी. वक\u001f) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 29th January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "