S.Manivannan, Vellore V. DCIT Circle I, Vellore

ITA 2166/CHNY/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9325 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 19-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T VASUDEVAN
• Keywords: Opportunity of being heard; Set aside

Judgement Text

./ ITA NO.2166/CHNY/2018 /ASSESSMENT YEAR: 2014-15 SHRI S. MANIVANNAN, NO.6, 5 TH EAST CROSS ROAD, GANDHI NAGAR, VELLORE-632 006. V S. THE DY. COMMISSIONER- OF INCOME TAX, CIRCLE-I, VELLORE. [PAN: AAIPM 0054 C ] ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.T.VASUDEVAN, ADV. /RESPONDENT BY : MR.SURESH PERIASAMY, JCIT /DATE OF HEARING : 27.01.2021 /DATE OF PRONOUNCEMENT : 10.03.2021 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI, IN ITA NO.16/C IT(A)-13/2014-15 DATED 31.05.2018 FOR THE AY 2014-15. BESIDES CHAL LENGING THE CONFIRMATION OF LEVY OF PENALTY OF RS.6,51,980/- U/ S.271(1)(C) OF THE ACT IN THE GROUNDS OF APPEAL, THE LD.COUNSEL FOR THE ASSES SEE VEHEMENTLY AGITATED THE EX PARTE ORDER PASSED BY THE LD.CIT(A). 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HA S FILED RETURN OF INCOME FOR THE AY 2014-15 DECLARING TOTAL INCOME AT RS.7,1 9,59,380/-. THE CASE , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . . , . , , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ITA NO.2166/CHNY/2018 :: 2 :: WAS SELECTED FOR SCRUTINY UNDER CASS. THE ASSESSEE HAS OFFERED INTEREST INCOME UNDER THE HEAD 'OTHER SOURCES' FOR RS.77,75, 811/-AND HAS CLAIMED EXPENSES UNDER SECTION 57 OF THE ACT. DURING THE S CRUTINY PROCEEDINGS, THE AO HAS ASKED THE ASSESSEE TO FURNISH THE DETAILS TO WARDS INTEREST RECEIPT WITH EVIDENCES. THE ASSESSEE THERE AFTER FILED REVI SED STATEMENT OF INCOME ADMITTING AT RS.98,85,785/- INSTEAD OF RS.77,75,811 /- AS ADMITTED IN ORIGINAL COMPUTATION. THUS, THE DIFFERENCE OF RS.2 1,09,974/- WAS BROUGHT TO TAX. SUBSEQUENTLY, THE AO INITIATED PENALTY PRO CEEDINGS U/S.271(1)(C) OF THE ACT. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BE FORE THE TRIBUNAL. THE LD.COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE HAS FILED AN AD JOURNMENT PETITION, WHICH WAS NOT CONSIDERED BY THE LD.CIT(A) AND DECID ED THE PENALTY APPEAL SUO MOTU WITHOUT GIVING AN OPPORTUNITY TO THE ASSESSEE TO R EPRESENT HIS CASE BEFORE THE APPELLATE AUTHORITY AND PRAYED FOR SETTING ASIDE THE ORDER PASSED BY THE LD.CIT(A). ON THE OTHER HAND, THE LD .DR DUTIFULLY SUPPORTED THE ORDER OF THE AUTHORITIES BELOW. 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATE RIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES B ELOW. ITA NO.2166/CHNY/2018 :: 3 :: 5. ON PERUSAL OF THE APPELLATE ORDER, WE FIND THAT THE ASSESSEE HAS FILED ADJOURNMENT LETTER AND THE LD.CIT(A) HAS NOT GRANTE D ADJOURNMENT AND DECIDED THE PENALTY APPEAL BASED ON THE INFORMATION GIVEN IN THE STATEMENT OF FACTS AND GROUNDS OF APPEAL. THUS, IT IS A FACT THAT THE ASSESSEE WAS NOT GIVEN PROPER OPPORTUNITY TO REPRESENT THE CASE AGAI NST THE LEVY OF PENALTY DURING THE COURSE OF APPELLATE PROCEEDINGS, SINCE T HE LD.CIT(A) HAS REJECTED THE ADJOURNMENT PETITION OF THE ASSESSEE. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, WE SET ASIDE THE APPELLATE ORDER AND REMIT THE MATTER BACK TO THE LD.CIT(A) WITH A DIRECTION TO AFFORD TH E OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE PENALTY APPEAL IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 10 TH DAY OF MARCH, 2021, IN CHENNAI. SD/- SD/- ( . ) ( G. MANJUNATHA ) /ACCOUNTANT MEMBER ( . . ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER /CHENNAI, /DATED: 10 TH MARCH, 2021. TLN /COPY TO: 1. /APPELLANT 4. ' /CIT 2. /RESPONDENT 5. /DR 3. ' ( ) /CIT(A) 6. /GF