C S M ENTERPRISES,CHENNAI V. INCOME TAX OFFICER, NCW19(4), CHENNAI

ITA 766/CHNY/2025

AI Insights

The case involves C S M Enterprises appealing against the order of the Commissioner of Income Tax (Appeals), which confirmed a penalty under section 271(1)(c) of the Income Tax Act, 1961, for the Assessment Year 2014-15. The penalty was initially levied by the Assessing Officer (AO) following an assessment under sections 147 and 144B, which added a sum of Rs.31,75,613 to the assessee's income. The assessee contended that they had inadvertently not noticed the notices for hearings, leading to their absence in the earlier proceedings. The Departmental Representative supported the CIT(A)'s decision, advocating for the dismissal of the appeal. However, the Tribunal found sufficient cause in the assessee's non-appearance and directed a re-hearing on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772703 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: R. GANESAN
• Keywords: Set aside; Principle of natural justice
• Section: 271(1)(c)

Judgement Text

"आयकर अपीलीय अधिकरण ’ ‘बी’’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI माननीय श्री मनु क ुमार गिरि, न्यागयक सदस्य एवं माननीय श्री एस.आर.रघुनाथा ,लेखा सदस्य क े समक्ष । BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.766/Chny/2025 ननिाारण वर्ा/Assessment Year: 2014-15 C S M Enterprises No.3033/B, V Cross St, Ramnagar South, Madipakkam, Chennai-600 091, v. Income Tax Officer, Non Corporate Ward 19(4), Chennai-34. [PAN: AAEFC8641D] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Mr. R. Ganesan, CA प्रत्यर्थी की ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवाईकीतारीख/Date of Hearing : 02.07.2025 घोर्णाकीतारीख /Date of Pronouncement : 28.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 17.01.2025 for Assessment Year 2014-15 conforming penalty u/s 271(1)(c) of the Act. 2. Brief facts of the case are as under: Printed from counselvise.com ITA No.766/Chny/2025 (AY 2014-15) C S M Enterprises :: 2 :: The AO passed assessment u/s.147 r.w.s. 144B of the Income tax Act, 1961 on 24.03.2022 making addition of Rs.31,75,613/- of the Act. Thereafter, AO levied penalty of Rs.9,81,263/- u/s. 271(1)(c) of the Act. The ld.CIT(A) confirmed the same. Now, assessee is in appeal before us. 3. Before us, the ld. Counsel for assessee submitted that the assessee has inadvertently not noticed the notices for hearings. He prayed for an opportunity before the ld.CIT(A) to prosecute the case diligently. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 4. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the reasons given, we are of the view that the reasons given for the non-appearance before the ld.CIT(A) is seems sufficient cause. Hence, we direct the ld.CIT(A) to hear the appeal on merits. Needless to say, that the ld.CIT(A) will follow the principle of natural justice and grant opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the Ld. CIT(A) for hearing on merits. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. Printed from counselvise.com ITA No.766/Chny/2025 (AY 2014-15) C S M Enterprises :: 3 :: 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open Court on the 28th day of August, 2025, in Chennai. Sd/- (श्री एस.आर.रघुनाथा) (S. R. RAGHUNATHA) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (मनु क ुमाि गिरि) (MANU KUMAR GIRI) न्यानयक सदस्य/JUDICIAL MEMBER चेन्नई/Chennai, ददनांक/Dated: 28th , August, 2025. KB, Sr.PS 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT, Chennai / Madurai / Salem / Coimbatore. 4. विभागीयप्रविविवि/DR 5. गार्डफाईल/GF Printed from counselvise.com "