KARUPPAUDAIYAR SELLAMUTHU, SALEM V. ITO,NFAC, DELHI

ITA 164/CHNY/2023

AI Insights

The case involves two appeals by the assessee, Karuppaudaiyar Sellamuthu, against the orders of the Learned Commissioner of Income Tax (Appeals), National Faceless ITA Nos.163 & 164/Chny/2023, which were ex-parte. These appeals were related to the assessment year 2017-18, concerning an assessment order under section 144 of the Income Tax Act and a penalty order under section 271AAC. The tribunal noted the absence of the assessee in previous proceedings but decided to provide another opportunity for hearing, emphasizing the principles of natural justice. The tribunal's decision to set aside the lower authorities' orders was influenced by the need to ensure fair hearing rights, despite the assessee's previous negligence in attending proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134769 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 06-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ Ɋायपीठ, चेɄई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI ŵी मनोज कु मार अŤवाल, लेखा सद˟ एवं ŵी मनोमोहन दास, Ɋाियक सद˟ के समƗ BEFORE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND SHRI MANOMOHAN DAS, JUDICIAL MEMBER आयकर अपील सं./ITA No.163/Chny/2023 िनधाŊरण वषŊ /Assessment Year: 2017-18 Karuppaudaiyar Sellamuthu, 5/94, Amman Nagar, Ammampalayam Attur, Salem - 636 141. [PAN: FGGPS-9568-N] Vs. The Income Tax Officer, Ward-1(9), Salem. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) आयकर अपील सं./ITA No.164/Chny/2023 िनधाŊरण वषŊ /Assessment Year: 2017-18 Karuppaudaiyar Sellamuthu, 5/94, Amman Nagar, Ammampalayam Attur, Salem - 636 141. [PAN: FGGPS-9568-N] Vs. The Income Tax Officer, National Faceless Assessment Centre, Delhi. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Appellant by : Shri T.S.LakshmiVenkataraman,FCA ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Shri ARV Sreenivasan, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 22.06.2023 घोषणा कᳱ तारीख /Date of Pronouncement : 23.06.2023 आदेश / O R D E R PER MANOMOHAN DAS, J.M: Aforesaid two appeals by assessee arises out of separate orders of Learned Commissioner of Income Tax (Appeals), National Faceless ITA Nos.163 & 164/Chny/2023 :- 2 -: Appeal Centre (NFAC) Delhi [CIT(A)] dated 02-12-2022 in the matter of assessment framed by Ld. Assessing Officer [AO] under section 144 of the Act on 02-12-2019 and penalty levied u/s 271AAC vide order dated 06-08-2021. 2. The Ld. AR, at the outset, submitted that quantum assessment orders as well as penalty orders passed by lower authorities are ex- parte orders. Accordingly, Ld. AR sought remand of impugned matters to Ld. AO so that the assessee could substantiate his claim before the Ld. AO. The Ld. Sr. DR submitted that the assessee remained negligent in attending any of the proceedings. 3. The Bench observed that the assessee did not appear before the lower authorities despite being given sufficient opportunities. However, the Bench accept the submission of Ld. AR by observing that after all the orders of the lower authorities are ex-parte orders and keeping in mind the principle of natural justice, the assessee be provided with another opportunity of hearing. Therefore, the impugned orders are set-aside. However, this concession would come upon payment of cost of Rs. 10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order. The ITA Nos.163 & 164/Chny/2023 :- 3 -: receipt / proof shall be furnished by the assessee in due course to Ld. AO who shall proceed to reframe the assessment and consequential penalty de novo after affording opportunity of hearing to the assessee. Ordered accordingly. 4. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on 23 rd June, 2023. Sd/- Sd/- (मनोज कुमार अᮕवाल) (Manoj Kumar Aggarwal) लेखा सद᭭य /Accountant Member (मनोमोहन दास) (Manomohan Das) Ɋाियक सद˟/Judicial Member चे᳖ई/Chennai, ᳰदनांक/Dated: 23-06-2023. EDN/- आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकर आयुƅ/CIT 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF