G SEKAR,CHENNAI V. ITO, NCW 3(5), CHENNAI

ITA 1417/CHNY/2024

AI Insights

The case involves an appeal by M/s. G.Sekar, HUF against the order of the CIT(A) for the assessment year 2017-18, which challenged the determination of taxable income and the validity of the assessment order. The assessee contested the increase in taxable income from the returned income of Rs.2,17,080 to Rs.8,17,080, and raised issues regarding the non-compliance with procedural provisions and the improper conversion of the case from limited to complete scrutiny. The Tribunal found deficiencies in the CIT(A)'s order, noting a lack of a reasoned decision and failure to address the legal challenges presented by the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 46390 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 07-08-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 13-05-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: J. VIGNESH
• Keywords: Set aside; Opportunity of being heard; Validity of assessment
• Section: 143(3); 143(2); 250

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री एबी टी. वर्की, न्याययर्क सदस्य एवं श्री अमिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1417/Chny/2024 निर्धारण वर्ा /Assessment Years: 2017-18 M/s. G.Sekar, HUF, No.1, Palat Madhavan Road, Mahalingapuram, Chennai-34 [PAN: AADHG6924J] Income Tax Officer, Non-Corp, Ward-3(5), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Shri J.Vignesh, CA प्रत्यर्थी की ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 07.08.2024 घोषणा की तारीख /Date of Pronouncement : 23.10.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/APL/S/250/2023-24/1062759877(1) dated 16.03.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), for the assessment years 2017-18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 16.03.2024 passed by First Appellate Authority, Bengaluru. ITA No.1417/Chny/2024 :- 2 -: 2.0 The grounds of appeal no.1 to 8 are regarding challenge to determination of taxable income at Rs.8,17,080/- as against returned income of Rs.2,17,080/-. The assesse has taken legal grounds of invalidity of assessment order per se on account of non-compliance of provision 129 r.w.s 143(2) as well as challenged merits of the addition. The assesse has also challenged validity of the assessment order on the premise that even though the case was one of limited scrutiny category, the Ld. AO converted it to , complete scrutiny without taking prior mandatory approval of his supervisory authority. The Ld. Counsel for the assesse drew our attention to the order of the Ld. CIT(A) wherein the order of the Ld. AO has been confirmed on the premise of non- submission of details and availment of opportunities. The Ld. DR relied upon the order of authorities below. 3.0 We have heard rival submissions in the light of material available on records. The order of the Ld. CIT(A) has been found to be suffering from deficiencies of being a non-speaking order. In para-5 of the order Ld. CIT(A) has stated as under:- ITA No.1417/Chny/2024 :- 3 -: “…. Even though Form-35 mentions that he appeallant relied upon all the books of accounts, ledger, copies, statements, letters, agreements and supporting papers produced before the assessing officer and all the replies filed before her in response to queries raised during assessment proceedings, nothing was produced during appellate proceedings. This is limited scrutiny assessment completed u/s 143(3) of the act to examine the claim of huge agricultural income. The appellant did not make any written submissions either. In the absence of the same, it is to be held that the appellant is not interested in providing the grounds agitated for the onus rests on the appellant. For these reasons despite fair opportunities of being heard provided were provided not utilized and the appellant sought only adjournments citing one reason or the other, the stand of the AO in taxing the income claimed exempt does not call for interference….” 4.0 It has been noted that the observations of Ld. CIT(A) are not inconformity with the facts on records. There is nothing in the appellate order to indicate as to when and how many opportunities were provided ITA No.1417/Chny/2024 :- 4 -: to the assesse. The Ld. CIT(A) has observed that it is a limited scrutiny case to examine claim of huge agricultural income without appreciating that the assesse had challenged conversion of limited to complete scrutiny issue in its grounds of appeal extracted by the appellate authority on page-4 of his order. The Ld. CIT(A) also failed to consider the challenge to the legality of the assessment order qua section 129 r.w.s 143(2) even though he has extracted the grounds of appeal on page-4 of his order. The observation that the assesse did not make any written submissions also appeared to be incorrect as the Ld. CIT(A) has himself extracted statement of facts on page-2 – 3 of his order which could have been considered to give some finding qua merits of the addition. Thus, the Ld. CIT(A) has passed an order without any application of mind. Be that as it may be we are of the view that ends of justice would be met if the matter is restored back to the file of the Ld. First Appellate Authority of de novo adjudication of the appeal. Accordingly, the order of Ld. CIT(A) is set aside with the directions to readjudicate the appeal afresh after giving all opportunity of being heard to the assesse. The assesse is directed to make necessary compliance to the notices and provide the Ld. CIT(A) with all required details. Accordingly, all the grounds of appeal 1 to 8 raised by the assesse are allowed for statistical purposes. ITA No.1417/Chny/2024 :- 5 -: 5.0 In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 23rd , October-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्याययक सदस्य / Judicial Member Sd/- (अमिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनांक/Dated: 23rd , October-2024. KB/- आदेश की प्रयतललपप अग्रेपषत/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. पवभागीय प्रयतयनधि/DR 5. गार्ड फाईल/GF "