R. SIVADOSS, NEEDAMANGALAM V. ITO, WARD-2, THIRUVARUR

ITA 2233/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 0368 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 02-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR CIT
• Assessee Lawyers: N DEVANATHAN
• Keywords: Non-deduction of tax

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . , . , BEFORE SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2233/CHNY/2019 /ASSESSMENT YEAR: 2010-11 & STAY PETITION NO.247/CHNY/2019 ( IN ITA NO.2233/CHNY/2019 ) /ASSESSMENT YEAR: 2010-11 SHRI R.SIVADOSS, S/O. REGUPATHY, NO.9, SOUTH STREET, ROYAPURAM VILLAGE & POST, NEEDAMANGALAM-612 803. VS. THE INCOME TAX OFFICER, WARD-2, THIRUVARUR. [PAN: AAWPS 5778 F] ( # /APPELLANT) ( $%# /RESPONDENT) # & / APPELLANT BY : MR.N.DEVANATHAN, ADV. $%# & /RESPONDENT BY : MR.R.CLEMENT RAMESH- KUMAR, ADDL.CIT & /DATE OF HEARING : 23.08.2019 & /DT. OF PRONOUNCEMENT : 06.09.2019 / O R D E R PER SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, TRICHY, IN ITA NO.382/2013- 14/CIT-A/TRY DATED 06.05.2019 FOR THE AY 2010-11 AN D AGAINST THE QUANTUM ADDITION THE ASSESSEE PREFERRED A STAY PETI TION IN SP ITA NO.2233/CHNY/2019 & SP NO.247/CHNY/2019 :- 2 -: NO.247/CHNY/2019 AND WE HAVE TAKEN UP BOTH THE ASSE SSEES APPEAL AS WELL AS STAY PETITION FOR ADJUDICATION. 2. THIS APPEAL FILED BY THE ASSESSEE IS DELAYED BY 16 DAYS, FOR WHICH, THE ASSESSEE HAS FILED AFFIDAVIT FOR CONDONATION OF THE DELAY, TO WHICH, THE REVENUE HAS NOT RAISED ANY SERIOUS OBJECTION. CONS EQUENTLY, THE DELAY OF 16 DAYS IN FILING OF THE APPEAL STAND CONDONED AND THE APPEAL IS DISPOSED OFF ON MERITS. 3. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS NOT GIVEN ANY OPPORTUNITY TO SUBSTANTIATE THE CASE OF T HE ASSESSEE. BRIEF FACTS OF THE ASSESSEES CASE ARE THAT THE ASSESSEE IS A E NGINEERING CONTRACTOR AND FILED HIS RETURN OF INCOME FOR THE AY 2010-11 A DMITTING TOTAL INCOME OF RS.9,67,230/-. THE AO COMPLETED THE ASSESSMENT DETE RMINING THE TAXABLE INCOME OF RS.24,75,932/- BY MAKING THE DISALLOWANCE U/S.40(A)(IA) FOR NON-DEDUCTION OF TAX AT SOURCE ON PAYMENT OF MACHIN ERY HIRE CHARGES OF RS.11,95,750/- AND 1/3 RD OF REPAIR & MAINTENANCE CHARGES DISALLOWED AS VOUCHERS ARE SELF-MADE RS.3,12,950/-. 4. ON AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEF ORE THE LD.CIT(A). THE LD.CIT(A) HAS GIVEN FOUR OPPORTUNIT IES TO SUBSTANTIATE THE CASE OF THE ASSESSEE BUT THE ASSESSEE FAILED TO APP EAR BEFORE THE ITA NO.2233/CHNY/2019 & SP NO.247/CHNY/2019 :- 3 -: LD.CIT(A). THEREFORE, THE LD.CIT(A) PASSED AN EX-P ARTE ORDER BY CONFIRMING THE ORDERS PASSED BY THE AO. 5. ON BEING AGGRIEVED, THE ASSESSEE PREFERRED AN APPE AL BEFORE THE TRIBUNAL AND PLEADED FOR ONE MORE OPPORTUNITY TO SU BSTANTIATE HIS CLAIM BEFORE THE LD.CIT(A). IT WAS A SUBMISSION OF THE A SSESSEE THAT DUE TO UNAVOIDABLE CIRCUMSTANCES, THE ASSESSEE/HIS REPRESE NTATIVE FAILED TO APPEAR BEFORE THE LD.CIT(A). HE FURTHER SUBMITTED THAT HE HAS FAIR CHANCE TO SUCCEED HIS APPEAL. THEREFORE, HE PLEADED FOR O NE MORE OPPORTUNITY TO SUBSTANTIATE HIS CLAIM BEFORE THE LD.CIT(A). 6. PER CONTRA, THE LD.DR SUBMITTED THAT THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITIES BUT THE ASSESSEE FAILED TO APPEAR BEFORE THE LD.CIT(A) TO SUBSTANTIATE HIS CLAIM. THEREFORE, TH E ORDERS PASSED BY THE LD.CIT(A) TO BE CONFIRMED. 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERI ALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES B ELOW. 8. ADMITTEDLY, THE LD.CIT(A) HAS GIVEN SUFFICIENT OPP ORTUNITIES TO THE ASSESSEE BUT HE FAILED TO APPEAR BEFORE THE LD.CIT( A). DUE TO THE NON- APPEARANCE OF THE ASSESSEES REPRESENTATIVE, THE LD .CIT(A) PASSED AN EX- PARTE ORDER, WHEREIN, IT HAS BEEN HELD AS UNDER: ITA NO.2233/CHNY/2019 & SP NO.247/CHNY/2019 :- 4 -: 4. THE ASSESSEE HAS NEITHER ATTENDED, NOR SOUGHT A DJOURNMENT AND THERE HAS BEEN NO COMMUNICATION FROM APPELLANT'S SIDE. KEEPIN G IN VIEW CBDT'S DIRECTION SO AS TO HAVE FASTER DISPOSAL OF CASES INVOLVING TAX A MOUNT BELOW RS.10 LAKHS WITH A VIEW TO REDUCTION IN LITIGATION AND HENCE RELIEF TO TAX PAYER AS WELL TO PROVIDE SMOOTHER LAND BETTER TAX ADMINISTRATION, THE APPEAL IS HEREBY DISMISSED. 9. AFTER CONSIDERING THE ORDERS PASSED BY THE LD.CIT( A), WE ARE OF THE VIEW THAT THE LD.CIT(A) HAS NOT DECIDED THE ISSUE O N MERITS. THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT IT IS A FIT C ASE TO GRANT ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CLA IM. HENCE, WE REMIT THIS ISSUE BACK TO THE FILE OF THE LD.CIT(A) AND TH E LD.CIT(A) IS DIRECTED TO DISPOSE OFF THIS APPEAL AFRESH AFTER GIVING OPPORTU NITY OF BEING HEARD TO THE ASSESSEE. CONSEQUENTLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 10. SINCE WE HAVE ADJUDICATED THE MAIN APPEAL OF THE ASSESSEE, THE STAY PETITION FILED BY THE ASSESSEE BECOMES INFRUCT UOUS AND ACCORDINGLY DISMISSED. 11. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AND THE STAY PETITION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 06 TH DAY OF SEPTEMBER, 2019, IN CHENNAI. SD/- SD/- ( . ) (S. JAYARAMAN) /ACCOUNTANT MEMBER ( - . . . / ) (DUVVURU R.L. REDDY) /JUDICIAL MEMBER ITA NO.2233/CHNY/2019 & SP NO.247/CHNY/2019 :- 5 -: /CHENNAI, 1 /DATED: 06 TH SEPTEMBER, 2019. TLN & $23 43 /COPY TO: 1. # /APPELLANT 4. 5 /CIT 2. $%# /RESPONDENT 5. 3 $ /DR 3. 5 ( ) /CIT(A) 6. /GF