PAUMAI PAZHAMUDIR CHOLAI, CHENNAI V. THE ITO,NO-CORPORATE WARD-14(3), CHENNAI

ITA 316/CHNY/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 6241 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 25-08-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 69; 144

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.316/Chny/2021 (िनधाBरण वषB / Assessment Year: 2017-18) M/s. Pasumai Pazhamudir Cholai No.102, Lakshmanaswamy Salai, KK Nagar, Chennai – 600 078. बनाम/ V s. ITO, Non Corporate Ward-14(3), Chennai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAP F P -8 6 2 6 -C (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri D. Anand (Advocate) – Ld. AR थ की ओरसे/Respondent by : Shri ARV Sreenivasan (Addl. CIT) –Ld. DR सुनवाई की तारीख/Date of Hearing : 04-08-2022 घोषणा की तारीख /Date of Pronouncement : 17-08-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-06- 2021 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.144 of the Act on 01-10-2019. From the perusal of orders, it could be seen that the assessee has not attended the assessment proceedings as well as appellate proceedings. ITA No.316 /Chny/2021 - 2 - 2. The Ld. AR, at the outset, pleaded for another opportunity of hearing which has been opposed by Ld. Sr. DR. Considering the case records, the appeal is disposed-off as under. 3. The assessee firm was assessed on best judgment basis u/s. 144 of the Act on 01-10-2019. It transpired that the assessee deposited cash of Rs.36.97 Lacs during demonetization. Though the assessee was required to file requisite details to substantiate the source of deposits, however, the assessee did not attend the assessment proceedings. Accordingly, Ld. AO estimated profit margin of 3% on bank credit of Rs.17.95 Crores. The cash deposits of Rs.36.97 Lacs were separately added u/s. 69 of the Act. Though the assessee preferred further appeal, however, it again failed to attend appellate proceedings and adduce evidences to support its case. Consequently, the appeal was dismissed. Aggrieved, the assessee is in further appeal before us. 4. Though we concur with the submissions of Ld. DR that the assessee has remained negligent in attending the proceedings before lower authorities, however, keeping in view the principle of natural justice, we restore the matter of assessment back to the file of Ld. AO to frame fresh assessment with a direction to the assessee to substantiate its stand failing which Ld. AO shall be at liberty to proceed with the assessment on the basis of material on record. 5. The appeal stand allowed for statistical purposes. Order pronounced on 17 th August, 2022. Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद9 / ACCOUNTANT MEMBER चे,ई / Chennai; िदनांक / Dated : 17-08-2022 EDN/- ITA No.316 /Chny/2021 - 3 - आदेश की Vितिलिप अ 6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु (अपील)/CIT(A) 4. आयकर आयु /CIT 5. िवभागीय ितिनिध/DR 6. गाड फाईल/GF