BEST WINNERS INSURANCE SERVICES PRIVATE LIMITED,SALEM V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE1(1), , SALEM

ITA 1334/CHNY/2025

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The case involves M/s. Best Winners Insurance Services Pvt. Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT (A)-1, Vadodara, for the Assessment Year 2011-12. The appeal was initially delayed by 38 days, which the Tribunal condoned after reviewing the affidavit provided by the assessee. The primary issue arose from an ex-parte assessment under sections 144 and 147 of the Income Tax Act, where the assessee's income was assessed at Rs.12,15,917, including additions for unaccounted money and business income. The Tribunal noted the absence of adequate evidence and explanation from the assessee in the initial assessment and decided to grant another opportunity for the assessee to substantiate its case, emphasizing the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711420 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2011-2012
• Other Referred Cases: ITA No.148/Chny/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S.LAKSHMI
• Keywords: Set aside; Business income; Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1334/Chny/2025 िनधाᭅरण वषᭅ/Assessment Year: 2011-12 M/s. Best Winners Insurance – Services Pvt. Ltd., C1 First Floor, Thirumala Elite Apartment, Angammal Colony, Main Road, Salem-636 009. v. The DCIT, Circle – 1(1), Salem. [PAN: AAECB 3474 C] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Appellant by : Mr.T. S. Lakshmi Venkataraman, FCA ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Mr. Gauthami Manivasagam, JCIT सुनवाईकᳱतारीख/Date of Hearing : 15.07.2025 घोषणाकᳱतारीख /Date of Pronouncement : 21.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT (A)-1, Vadodara (hereinafter in short ‘the Ld.CIT(A)’), dated 09.01.2025 for the Assessment Year (hereinafter in short ‘AY’) 2011-12. Printed from counselvise.com ITA No.1334/Chny/2025 (AY 2011-12) M/s. Best Winners Insurance Services Pvt. Ltd :: 2 :: 2. At the outset, it is noted that the appeal has been filed after delay of ‘38’ days and the assessee has filed an affidavit explaining the delay. Having gone through the contents of the affidavit, we are satisfied that there is sufficient cause for the delay. Therefore, we condone the delay of ‘38’ days and proceed to adjudicate the grounds of appeal raised by the assessee. 3. The brief facts of the case are that the assessee has filed return of income (RoI) on 30.09.2012 vide acknowledgement no. 506777861300912 declaring total income of Rs.2,00,690/-. As per the information available with the department that the assessee has cash transaction exceeding Rs.10 Lakhs or more in a month, the case has been re-opened by issuance of notice u/s.148 of the Act dated 22.03.2018, which was served upon the assessee on 31.08.2018. Notices u/s.142(1) of the Act dated 16.05.2019 and SCN dated 23.11.2019 were issued upon the assessee. Ex-parte Assessment u/s.144 r.w.s. 147 of the Act completed in the case of the assessee on 07.12.2019 at an income of Rs.12,15,917/- by making addition of Rs.9,18,001/- as unaccounted money u/s.69A of the Act and Rs.97,226/- as unaccounted business income. Demand of Rs.6,15,950/- raised in the case of the assessee. 4. The assessee relied upon the decision of this Bench in the assessee’s own case for AY 2012-13 in ITA No.148/Chny/2024, wherein the Tribunal held as under: Printed from counselvise.com ITA No.1334/Chny/2025 (AY 2011-12) M/s. Best Winners Insurance Services Pvt. Ltd :: 3 :: 2. The registry has noted a delay of 44 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of Managing Director of the assessee. Considering the period of delay, the delay is condoned and we proceed with disposal of the appeal. 3. It could be seen that the assessment has been framed on best judgment basis. Upon perusal of para-4 of first appellate order, it could be seen that the assessee failed to make any representation therein. Accordingly, the assessment was confirmed against which 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. 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 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 assessment on merits. 5. The appeal stand allowed for statistical purposes. 5. We note that the assessment has been passed ex-parte u/s 144 lacking evidence and explanation from the assessee. However, the AO has not given his comments with regard to the Rule 46A and cash book however, he left this to ld.CIT(A) being co-terminus authority. Hence, we are of the considered view that this issue of addition u/s 69A requires relook by the AO. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.AO for de novo adjudication subject to cost of Rs.5000/- 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 will be furnished by the Assessee before Ld.AO whose Printed from counselvise.com ITA No.1334/Chny/2025 (AY 2011-12) M/s. Best Winners Insurance Services Pvt. Ltd :: 4 :: shall proceed for denovo assessment after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.AO shall be at liberty to proceed with the assessment proceedings as per law. 6. In result, the appeal filed by the assessee stand allowed for statistical purposes. Order pronounced on the 21st day of July, 2025, in Chennai. Sd/- (जगदीश) (JAGADISH) लेखा सद᭭य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) ᭠याियक सद᭭य/JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated: 21st July, 2025. TLN, Sr.PS 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF Printed from counselvise.com "