KAVYA TRAVEL PRIVATE LIMITED, CHENNAI V. ITO CORPORATE WARD 4 (4), CHENNAI

ITA 3007/CHNY/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 9132 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 23-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; TDS; Set aside
• Section: 40(a)(ia)

Judgement Text

आयकर अपील सं./ITA No.3007/Chny/2019 िनधा रण वष /Assessment Year: 2015-16 M/s.Kavya Travel Pvt. Ltd., 9, Ezhil Nagar, Church Street, Poonamallee, Chennai-600 056. v. The Income Tax Officer, Corporate Ward-4(4), Chennai. [PAN: AAECK 5254 D] (अपीलाथ /Appellant) ( थ /Respondent) अपीलाथ की ओर से/ Appellant by : Mr.M.Karunakaran, Adv. थ की ओर से /Respondent by : Mr.G.Johnson, Addl.CIT सुनवाई की तारीख/Date of Hearing : 08.11.2021 घोषणा की तारीख /Date of Pronouncement : 08.11.2021 आदेश / O R D E R PER M.L.MEENA, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-8, Chennai, in ITA No.66/17-18, dated 20.08.2019 for the AY 2015-16. 2. At the time of hearing, Ld. counsel for the assessee has brought to our notice that CIT(A) has dismissed the appeals exparte without affording proper and reasonable opportunity of being heard to the assessee. Therefore, in the interest of justice, the matter may be restored back to the CIT(A) with a direction to adjudicate the appeals on merit after affording proper opportunity of being heard to the assessee. आयकर अपीलीय अिधकरण, ’सी’ !ायपीठ, चे$ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI ी वी. दुगा राव, ाियक सद एवं डॉ एम.एल. मीना, , लेखा सद* के सम BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND Dr. M.L.MEENA, ACCOUNTANT MEMBER ITA No.3007/Chny/2019 :: 2 :: 3. The Ld. DR has fairly agreed to the objection of the assessee that sufficient opportunity of being heard be provided to assessee by the learned CIT appeal before deciding the appeal against him. 4. Having heard both the sides and perusing the material available on record, we find that admittedly the Ld.CIT(A) dismissed the assessee’s appeal by an ex parte order in summary manner as follows: 6. The Assessing Officer has taken note of payments made by the assessee to various financial institutions without making TDS. The assessee has objected to the same claiming that the interest amounts were part of the EMI paid by the company during the year. However, the assessee company has not been able to provide any proof regarding the same. The omission to make TDS while crediting and/or paying interest amount cannot be condoned. The assessee company could have availed of the facility to file Form 26A from the recipient companies. This has also not been done. In view of the same, it appears that the assessee company is not serious in explaining its lapses and why the same should be condoned. The consideration of interest for disallowance u/s 40(a)(ia) with respect to Rs.55,99,809/- is upheld. 7. The assessee company does not seem to have any explanation with respect to the payment made to other travels without making TDS. Even in the grounds of appeal, the assessee company has not filed any serious objections to considering the payment of Rs.1,14,17,599/- for disallowance u/s.40(a)(ia). In view of the same, the disallowance with respect to Rs.1,14,17,599/- is also upheld. 8. The assessee company claims that vehicle maintenance expenditure of Rs.66,66,657/- was incurred for day to day running of transport vehicles and hence the TDS provisions are not attracted. However, the assessee company has failed to submit any breakup or any specific explanation in this regard. Considering the same, the disallowance with respect to this amount of Rs.66,66,657/- is also upheld. Together, the entire disallowance u/s.40(a)(ia) to the extent of Rs.71,05,220/- is sustained. The grounds are dismissed. 5. From the above, we find that the CIT(A) has rejected the appeals without providing proper opportunity to the assessee. Moreover, he has decided the issue based on information on record that is Assessment Order ignoring the adjournment applications filed by the assessee and thus, the assessee has not been heard before taking adverse view against him. In the light of these facts, we are of the view that CIT(A) has not afforded ITA No.3007/Chny/2019 :: 3 :: proper opportunity of being heard to the assessee. We, therefore, set aside the order of the CIT(A) and restore the matter back to his file with the direction to adjudicate the appeal afresh on merit after affording adequate opportunity of being heard to the assessee and considering the documentary evidence to be produced in the course of proceedings. No doubt, the assessee shall cooperate in the fresh proceeding before the CIT(A). 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 08 th day of November, 2021, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) !ाियक सद*/JUDICIAL MEMBER Sd/- (एम.एल.मीना) ( M.L.MEENA) लेखा सद*/ACCOUNTANT MEMBER चे$ई/Chennai, िदनांक/Dated: 08 th November, 2021. TLN आदेश की ितिलिप अ+ेिषत/Copy to: 1. अपीलाथ /Appellant 4. आयकर आयु,/CIT 2. थ /Respondent 5. िवभागीय ितिनिध/DR 3. आयकर आयु, (अपील)/CIT(A) 6. गाड फाईल/GF