V.T.C. SELVARAJAN, CHENNAI V. ITO, NCW - 2 (1), CHENNAI

ITA 5/CHNY/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4957 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-09-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 02-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J.RADHAKRISHNAN
• Keywords: Unexplained cash credit; Principle of natural justice; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! . , ! ' BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.5/CHNY/2020 ( / ASSESSMENT YEAR: 2016-17) MR. V.T.C. SELVARAJAN, 15/3, SIVAJI STREET, T.NAGAR,CHENNAI-600 017. VS THE INCOME TAX OFFICER, NON-CORPORATE WARD-2(1), CHENNAI-600 034. PAN: AASPS 5826L ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. J.RADHAKRISHNAN, ADVOCATE /RESPONDENT BY : MR. G.JOHNSON, ADDL.CIT /DATE OF HEARING : 27.09.2021 /DATE OF PRONOUNCEMENT : 27.09.2021 / O R D E R PER G.MANJUNATHA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER OF THE LEARNED CIT(A)-2, CHENNAI DATED 25.10. 2019 AND PERTAINS TO ASSESSMENT YEAR 2010-11. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR ASSESSMEN T YEAR 2016- 17 ON 01.03.2018 DECLARING TOTAL INCOME OF RS.3,46, 950/-. THE CASE WAS TAKEN UP FOR SCRUTINY AND ASSESSMENT HAS BEEN COMPLETED U/S.143(3) OF THE INCOME TAX ACT, 1961, O N 18.12.2018 AND DETERMINED TOTAL INCOME OF RS.4,60 ,61,112/- BY MAKING VARIOUS ADDITIONS, INCLUDING ADDITIONS TO WARDS UNEXPLAINED CASH CREDIT U/S.68 OF THE INCOME TAX AC T, 1961, FOR 2 ITA NO. 5/CHNY/2020 RS.2,82,36,200/-, DISALLOWANCE OF EXPENDITURE OF RS .10,28,938/- AND ADDITIONS TOWARDS CAPITAL GAIN OF RS.1,64,49,02 4/-. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), BU T NEITHER APPEARED NOR FILED ANY DETAILS DESPITE NUMBER OF OPPORTUNITIES OF HEARING WAS PROVIDED. THEREFORE, THE CIT(A) DISM ISSED APPEAL FILED BY THE ASSESSEE EX-PARTE AND CONFIRMED ADDITIONS MADE BY THE ASSESSING OFFICER. AGGRIEVED BY THE C IT(A) ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LEARNED A.R FOR THE ASSESSEE SUBMITTED TH AT THE LEARNED CIT(A) HAS ERRED IN DISMISSING APPEAL FILE D BY THE ASSESSEE WITHOUT PROVIDING REASONABLE OPPORTUNITY O F HEARING IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE, WHICH I S EVIDENT FROM FACT THAT ALTHOUGH, HE CLAIMS FOUR DATES OF HEARING WAS PROVIDED, BUT EXCEPT ON 02.07.2019 REMAINING THREE NOTICES ISSUED BY THE CIT(A) WAS NOT SERVED ON THE ASSESSEE AND THEREFORE, THE ASSESSEE COULD NOT APPEAR BEFORE THE LEARNED CIT(A). THEREFORE, ONE MORE OPPORTUNITY OF HEARING MAY BE GIVEN TO GO BACK TO LEARNED CIT(A) AND FILE NECESSA RY EVIDENCES TO JUSTIFY HIS CASE. 3 ITA NO. 5/CHNY/2020 4. THE LEARNED DR, ON THE OTHER HAND, STRONGLY SUP PORTING ORDER OF THE LEARNED CIT(A) SUBMITTED THAT THE ASSE SSEE NEITHER APPEARED NOR FILED ANY DETAILS AND THUS, THERE IS NO REASON TO GIVE ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSE E. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED MATERIAL AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIES BELOW. NO DOUBT, APPELLATE AUTHORITY HAS NO OPTION, BUT TO DISPOSE OFF APPEAL FILED BY THE ASSESSEE, IN CASE A PPELLANT DOES NOT APPEAR BEFORE THE APPELLATE AUTHORITY, DESPITE VARIOUS OPPORTUNITY OF HEARING WAS PROVIDED, BUT SUCH APPE AL SHOULD BE DISPOSED OFF ON MERITS ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. BUT, BEFORE DISPOSAL OF APPEAL, REASONABLE OPPORTUNITY OF HEARING MUST BE GIVEN TO EXPLAIN HIS CASE. IN T HIS CASE, THE ASSESSEE CONTENDED THAT ALTHOUGH FOUR DATES WERE GI VEN, BUT EXCEPT ON ONE OCCASION, THREE CALL NOTICES ISSUED BY LEARNED CIT(A) WERE NOT SERVED ON THE ASSESSEE AND SAID CL AIM WAS UNCONTROVERTED. THEREFORE, CONSIDERING FACTS AND CI RCUMSTANCES OF THIS CASE, WE ARE OF THE CONSIDERED VIEW THAT I SSUE NEEDS TO GO BACK TO THE FILE OF LEARNED CIT(A) TO GIVE ONE M ORE OPPORTUNITY OF HEARING TO THE ASSESSEE TO FILE NECE SSARY 4 ITA NO. 5/CHNY/2020 EVIDENCES AND EXPLAIN HIS CASE. HENCE, WE SET ASIDE APPEAL TO THE FILE OF LEARNED CIT(A) AND DIRECT HIM TO RECONS IDER THE ISSUE, AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING T O THE ASSESSEE. NEEDLESS TO SAY THE ASSESSEE SHALL APPE AR BEFORE THE LEARNED CIT(A) AND FURNISH NECESSARY DETAILS W ITHOUT SEEKING ANY ADJOURNMENT UNLESS OTHERWISE WARRANTED. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER, 2021 SD/- SD/- ( . ) ( . ) (DUVVURU RL REDDY) (G.MANJUNATHA) # % / JUDICIAL MEMBER % / ACCOUNTANT MEMBER # /CHENNAI, ( /DATED 27 TH SEPTEMBER, 2021 DS *+ ,+ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. - () /CIT(A) 4. - /CIT 5. + 1 /DR 6. /GF .