Appeal details
Counselvise Citation
[2024] 130 COUNSELVISE.COM (IT) 2025 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
03-09-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
C
Next Hearing Date
17-07-2024
Assessment Year
2018-2019
Appeal Filed On
11-04-2024
Judgement Text
आयकर अपीलीय अिधकरण, ’सी’ यायपीठ, चे ई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘C’ BENCH: CHENNAI
ी एबी टी. वक
, ाियक सद
एवं
एवंएवं
एवं
ी जगदीश, लेखा सद के सम
BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND
SHRI JAGADISH, ACCOUNTANT MEMBER
आयकर अपील सं./ITA No.1013/Chny/2024
िनधारणवष/Assessment Year: 2018-19
M/s.Chhotagovindpur & Bagbera-
Drinking Water –
Supply Project Ltd.,
New No.136, G.R.Tower 4
th
Floor,
Nelson Manickam Road, Aminjikarai,
Chennai-600 029.
v.
The ITO,
Corporate Ward-1(3),
Chennai.
[PAN: AAGCC 0433 L]
(अपीलाथ/Appellant)
(यथ/Respondent)
अपीलाथ क ओर से/ Appellant by
:
Shri R. Viswanathan, FCA
यथ क ओर से /Respondent by
:
Shri R. Clement Ramesh
Kumar, CIT
सुनवाईकतारीख/Date of Hearing
:
19.07.2024
घोषणाकतारीख /Date of Pronouncement
:
04.09.2024
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee against the order of the
Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in
short "the Ld.CIT(A)”), Delhi, dated 14.02.2024 for the Assessment Year
(hereinafter in short "AY”) 2018-19.
2. The main grievance of the assessee is against the action of the
Ld.CIT(A) dismissing the appeal on the ground that the assessee didn’t
ITA No.1013/Chny/2024 (AY 2018-19)
M/s.Chhotagovindpur &
Bagbera Drinking Water Supply Project Ltd.
:: 2 ::
file application for admission of additional evidences during the course of
appellate proceedings before the Ld.CIT(A), without explaining ‘as to why’
the additional evidences should be admitted under Rule 46A the Income
Tax Rules, 1962 and therefore, the Ld.CIT(A) didn’t admit the additional
evidences filed by the assessee along with written submissions and
thereafter, the Ld.CIT(A) has merely reiterated the AO’s order and
dismissed the appeal of the assessee. The Ld.AR assailing the impugned
action of the Ld.CIT(A) contented that the action of the Ld.CIT(A) is bad
in law for violation of natural justice; and also brought to our notice the
reason for AO passing ex-parte order because assessee didn’t file the
relevant evidences during the course of assessment proceedings.
According to Ld AR the reason for assessee not able to file relevant
evidence during assessment proceedings was because assessment
happened in the midst of pandemic Covid-19 and the AO passed the
Assessment Order u/s.144 of the Income Tax Act, 1961 (hereinafter in
short "the Act”) (best judgment assessment) vide order dated 08.09.2021
by computing total income at Rs.22,43,12,797/- in place of returned
income of Rs.1,49,55,022/-; And even though, the assessee brought to
the notice of the Ld.CIT(A) that due to pandemic, assessee was unable to
collect the relevant evidences and therefore has filed the same before
him, but the Ld.CIT(A) has brushed aside the reason for non-filing of
ITA No.1013/Chny/2024 (AY 2018-19)
M/s.Chhotagovindpur &
Bagbera Drinking Water Supply Project Ltd.
:: 3 ::
relevant evidences before the AO and arbitrarily dismissed the appeal on
hyper-technical grounds that assessee failed to file application for
admission of additional evidences. Moreover, we note that the AO has
passed best judgment assessment u/s.144 of the Act and has made the
addition/disallowance as under:
i) Difference in turnover as per the 26AS statement of the assessee
and turnover disclosed by the assessee in ITR of Rs.20,46,23,562/-
which the assessee could not reconcile.
ii) An addition/disallowance of Rs.47,34,213/- u/s. 43B of the Act.
iii) An amount of Rs.2,31,510/-u/s.36(1) (va) of the Act.
iv) Deduction u/s 801A of the Act of Rs. 1,49,55,022/-
3. It is noted that assessee before the Ld.CIT(A) had raised Ground
No.2, wherein, it was pointed out that AO didn’t provide proper
opportunity during assessment proceedings and pleaded that the AO
ought to have proper opportunity/given time as Income Tax portal was
not functioning between May to August, 2021; and that the AO hurriedly
passed the Assessment Order, even though, there was sufficient time for
framing of the Assessment Order. The Ld.AR also brought to our notice
that since the assessee found it difficulty to upload the required details,
(as IT portal wasn’t working from May to August, 2021), assessee filed a
query with the Grievance Cell on 13.06.2021 explaining the difficulty in
filing the details; and in response to the same, the CPC on 24.09.2021
responded by stating that the problems have been resolved. However, by
ITA No.1013/Chny/2024 (AY 2018-19)
M/s.Chhotagovindpur &
Bagbera Drinking Water Supply Project Ltd.
:: 4 ::
the time, the AO has passed Assessment Order on 08.09.2021 without
looking into the relevant material. And even though, as noted, the
assessee raised Ground No.2 (supra) before the Ld.CIT(A) pointing out
that the AO failed to provide proper opportunity during the assessment
proceedings, the Ld.CIT(A) brushed it aside on the reason that adequate
opportunity had been granted to the assessee. We don’t countenance
this action of the Ld.CIT(A). We find that AO failed to give proper
opportunity to the assessee during assessment proceedings since there
were technical glitches in the IT portal between May to August, 2021.
Therefore, relying the decision of the Hon’ble Supreme Court in the case
of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC) wherein, it
was held as under:
1. It is unnecessary to go into great detail in these matters for there is a statement in
the order of the Tribunal, the fact-finding authority, that reads thus :
"We will straightaway agree with the assessee's submission that the Income-
tax Officer had not given to the assessee proper opportunity of being heard."
2. That the assessee could have placed evidence before the first appellate authority or
before the Tribunal is really of no consequence for it is the assessment order that
counts. That order must be made after the assessee has been given a reasonable
opportunity of selling out his case. We, therefore, do not agree with the Tribunal and
the High Court that it was not necessary to set aside the order of assessment and
remand the matter to the assessing authority for fresh assessment after giving to the
assessee a proper opportunity of being heard.
3. Two questions were placed before the High Court, of which the second question is
not pressed.
The first question reads thus:
"1. Whether, on the facts and in the circumstances of the case, the Tribunal
was justified in not setting aside the assessment order in spite of a finding
ITA No.1013/Chny/2024 (AY 2018-19)
M/s.Chhotagovindpur &
Bagbera Drinking Water Supply Project Ltd.
:: 5 ::
arrived at by it that the Income-tax Officer had not given a proper opportunity
of hearing to the assessee?"
4. In our opinion, there can only be one answer to this question which is inherent in
the question itself: in the negative and in favour of the asses-see.
5. The appeals are allowed. The order under challenge is set aside. The assessment
order, that of the Commissioner (Appeals) and of the Tribunal are also set aside. The
matter shall now be remanded to the assessing authority for fresh consideration, as
aforestated. No order as to costs.
4. Respectfully following the decision of the Hon’ble Supreme Court in
the case of TIN Box Co. (supra), and in the light of the fact that the
assessee didn’t get proper opportunity before the AO, we set aside the
impugned order of the Ld.CIT(A) and restore the assessment back to the
file of the AO with a direction to frame de novo assessment. The
assessee is at liberty to file all the relevant documents before the AO and
the AO to frame fresh assessment in accordance to law after hearing the
assessee.
5. In the result, appeal filed by the assessee is allowed for statistical
purposes.
Order pronounced on the 04
th
day of September, 2024, in Chennai.
Sd/-
(जगदीश)
(JAGADISH)
लेखा सदय/ACCOUNTANT MEMBER
Sd/-
(एबी टी. वक
)
(ABY T. VARKEY)
याियक सदय/JUDICIAL MEMBER
चे ई/Chennai,
!दनांक/Dated: 04
th
September, 2024.
TLN, Sr.PS
ITA No.1013/Chny/2024 (AY 2018-19)
M/s.Chhotagovindpur &
Bagbera Drinking Water Supply Project Ltd.
:: 6 ::
आदेश क ितिलिप अ$ेिषत/Copy to:
1. अपीलाथ/Appellant
2. थ/Respondent
3. आयकरआयु/CIT, Chennai / Madurai / Salem / Coimbatore.
4. िवभागीयितिनिध/DR
5. गाड फाईल/GF
Mehul