Sri Renganatha Co operative Stores Ltd, Trichy V. ITO, Circle 1 , Trichy

ITA 1008/CHNY/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 1363 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2024
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 25-06-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 11-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

आयकर अपीलȣय अͬधकरण, बी, Ûयायपीठ,चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय Įी मन ु क ु मार ͬगǐर, ÛयाǓयक सदèय एवं Įी एस.आर. रघ ु नाथा, लेखा सदèय के सम¢ BEFORE HON’BLE SHRI MANU KUMAR GIRI, JM AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1008/CHNY/2024 िनधाᭅरण वषᭅ/Assessment Year: 2018-19 Sri Renganatha Co-Operative Stores Ltd, 124, South Chitra Street, Srirangam, Trichy 620 006. PAN: AAAAS 0345R Vs. The Income Tax Officer, Circle 1, Trichy. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri. S. Girish Kumar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. D. Hema Bhupal, IRS, JCIT. सुनवाई कᳱ तारीख/Date of Hearing : 26.06.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 28.06.2024 आदेश /O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal filed by the assessee is directed against the order No.ITBA/NFAC/S/250/2023-24/1061051333 (1) of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] dated 16.02.2024 for Assessment Year 2018-19. The assessment was framed by the Additional/Joint/Deputy/Assistant Commissioner of Income Tax/ Income-tax - 2 - ITA No.1008/Chny/2024 Officer, National e-Assessment Centre, Delhi u/s.143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter the ‘Act’) for the assessment year 2018-19 vide order dated 11.03.2021. 02. Brief facts of the case are that Assessee is an Association of Persons (AOP) had filed return of income for AY 2018-19 on 31.03.2019 declaring Nil income. The return was processed u/s.143(1) of the Act on 17.10.2019 at Nil income. The assessee case was selected for scrutiny through CASS and notice dated 06.02.2021 was issued to the assessee society and the assessee society has submitted reply on 09.03.2021 filing earlier years assessment orders, computation of income and balance sheet alongwith salary details, trade charges, establishment expenses etc., Since there was no written reply or explanation regarding observations in draft assessment orders, notices dated 13.2.2021 and 24.02.2021 were issued to the assessee. Since there was no reply, the Assessing Officer made disallowance of bonus paid of Rs.1,38,551/- and made an addition of Rs.4,58,241/- towards unexplained expenditure. Being aggrieved assessee challenged the said order before the ld.CIT(A). The ld.CIT(A) confirmed the action of the ld. AO on the reason that assessee has not submitted any explanation for the queries sent vide notices dated 08.10.2021, 09.12.2021 and 21.09.2022. Aggrieved, assessee preferred an appeal before the Tribunal. 3. At the outset, Ld. Counsel for the appellant submitted that the ld. AO as well as Ld.CIT(A) had not properly followed the principles of natural justice. Ld. Counsel for the appellant contended that notices were sent during COVID - 3 - ITA No.1008/Chny/2024 period and hence assessee could not submit required documents. He further prayed that if an adequate opportunity of hearing is given before ld. Assessing Officer, assessee will submit the required documents. Ld. Senior Departmental Representative urged that the order of AO and that of CIT(A) be confirmed. 4. We have gone through the orders of lower authorities and submissions addressed by the parties before us. We find that the ld. AO as well as ld.CIT(A) has not given effective opportunity of hearing to appellant to explain its case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of the ld. Assessing Officer to look afresh after affording adequate opportunity of hearing the assessee. 5. In the result, the appeal filed by the assessees is allowed for statistical purposes. Order pronounced in the open court on 28th day of June, 2024 at Chennai. Sd/- Sd/- एस.आर. रघ ु नाथा (S.R. RAGHUNATHA) लेखा सदèय/ ACCOUNTANT MEMBER (मन ु क ु मार ͬगǐर) (MANU KUMAR GIRI) ÛयाǓयक सदèय / JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated, the 28th June, 2024 KV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT, Chennai 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.