DURAISWAMY SUBRAMANIAN,COIMBATORE V. INCOME TAX OFFICER, COIMBATORE

ITA 401/CHNY/2025

AI Insights

The case involves Shri Duraiswamy Subramanian, an individual engaged in retail trading of agro products, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi. The appeal was directed against an ex-parte order passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2017-18. The initial assessment was completed on a best judgment basis under section 144 of the Act due to the assessee's non-compliance. The assessee's representative argued that the assessee was not computer literate and failed to notice the hearing notices in the ITBA portal, leading to non-cooperation. The Department argued that adequate opportunities were provided, and there was no violation of the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298610 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOWTHAMI MANIVASAGAM
• Assessee Lawyers: N. SUBRAMANIAN; ITP RTD
• Keywords: Principle of natural justice
• Section: 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी अिमताभ शु᭍ला, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 401/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2017-18 Shri Duraiswamy Subramanian, 42/1, Nehru Street, Ram Nagar, Coimbatore – 641 009. PAN: ACAPS 7481B Vs. The Income Tax Officer, Non-Corporate Ward 2(1), Coimbatore – 641 018. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri N. Subramanian, ITP(Rtd.) ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gowthami Manivasagam,JCIT सुनवाई कᳱ तारीख/Date of Hearing : 22.04.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 22.04.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of CIT(A), National Faceless Appeal Centre, Delhi dated 03.12.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017- 18. - 2 - ITA No.401/CHNY/2025 2. At the very outset, we notice that the assessment has been completed on best judgment basis u/s.144 of the Act on 11.10.2019. Further the CIT(A)’s order is also ex-parte, since there was no compliance from the assessee to the three notices issued from the office of the First Appellate Authority. 3. The Ld.AR submitted that the assessee is an individual doing retail trading in agro products in small level. He further submitted that the assessee is not a computer literate and is not well versed with e-proceedings and faceless system adopted by the Department. Hence, the assessee failed to take note of hearing notices in the ITBA portal, resulting in non-cooperation of assessee during the assessment proceedings and appellate proceedings. It was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case. 4. The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. - 3 - ITA No.401/CHNY/2025 5. We have heard rival submissions and perused the materials on record. Since there was no response by the assessee to the notices issued, the CIT(A) passed ex-parte order. We strongly deprecate the nonchalant attitude of the assessee. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case. Since the proceedings before the AO is also best judgment assessment, we deem it appropriate to restore the matter to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22nd April, 2025 at Chennai. Sd/- Sd/- (अͧमताभ शुÈला) (AMITABH SHUKLA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 22nd April, 2025 RSR - 4 - ITA No.401/CHNY/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "