V. MANIKANDAN, TUTICORIN V. ITO, WARD - 3, TUTICORIN

ITA 67/CHNY/2023

AI Insights

The case involves an appeal by Mr. V. Manikandan against the order of the Commissioner of Income Tax (Appeals), which confirmed the assessment made by the Income Tax Officer, Ward-3, Tuticorin for the assessment year 2017-18. The primary contention was the alleged violation of the principles of natural justice and the provisions of the Income Tax Act, 1961, specifically under section 154, due to the non-provision of a proper and effective opportunity of being heard. The Tribunal noted that despite the CIT(A) providing multiple opportunities to the assessee, the CIT(A) failed to pass a speaking order on merits, leading to the decision to remand the matter back for a detailed examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127457 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 17-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside
• Section: 154; 143(3); 153A

Judgement Text

आयकर अपील य अ धकरण, ‘सी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद&य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 6 7/ Ch n y/ 2 02 3 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 7- 1 8 ) Mr. V.Manikandan 29/3, Viswanathapuram Main Road, Kodambakkam, Chennai-600 024. V s The Income Tax Officer, Ward-3, Tuticorin. P AN: AW E PM 2 3 1 2 D (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Ms. B.Revathy, Advocate यथ क ओरसे/Respondent by : Mr. P.Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 29.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 29.03.2023 आदेश / O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1047507957(1) dated 18.11.2022. The assessment was completed by the Income Tax Officer, Ward-3, Tuticorin for relevant assessment year 2017-18 u/s. 153A r.w.s 143(3) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 21.12.2018. 2. At the outset, learned counsel for the assessee drew our attention to ground no.3 which reads as under:- 2 ITA No. 67/Chny/2023 “The CIT(A) erred in confirming the Order of the AO, u/s 154 of the act without providing proper and effective opportunity of being heard to the appellant, which is mandatory requirement for passing an order u/s 154(3), which therefore, violated the principles of natural justice and the provisions of the Act. 3. The learned counsel for the assessee stated that the CIT(A) has dismissed appeal solely on the ground of non- appearance and without adjudicating the issue on merits. The learned counsel for the assessee took us through order of the CIT(A) and she drew our attention to final findings of the CIT(A), which reads as under:- “Hence in view of the above and on the basis of detailed findings and reasons given by the A.O in his assessment order, I uphold the addition made by the Assessing Officer. The appeal on this ground is accordingly dismissed.” 4. She argued that the CIT(A) is simplicitor, confirmed the order without speaking even a word on merits of the assessee’s case, despite fact that entire facts were narrated in statement of facts filed before the CIT(A). But, when it was pointed out to 3 ITA No. 67/Chny/2023 learned counsel for the assessee that the CIT(A) has allowed five opportunities, which is noted in the order of the CIT(A), the assessee should have availed the opportunity, which he failed miserably. When these facts were confronted to Ld. Senior DR, he stated that there is default on the part of the assessee in not attending hearings, despite many notices were served on him. 5. After hearing both the sides on the issue of natural justice and non-speaking order or order passed for non-appearance, we noted that although, the CIT(A) has provided five opportunities, which were not availed by the assessee, but the CIT(A) is duty bound to pass speaking order on merits. Hence, we set aside order of the CIT(A) and remand the matter back to the file of the CIT(A) for passing a speaking order on the issue, after providing reasonable opportunity of hearing to the assessee. The assessee will also pay cost of Rs.5,000/- to the Tamil Nadu State Legal Services Authority at Hon'ble High Court of Madras. 6. In view of the above, and subject to the above condition that the assessee will pay cost of Rs.5,000/-, the matter is 4 ITA No. 67/Chny/2023 remitted back to the file of the CIT(A). Needless to say that the assessee will provide all the details at the first instance before the CIT(A), who will decide the issue afresh in accordance with law. The appeal of the assessee is allowed for statistical purposes on the above terms. 7. In term of above, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29 th March, 2023 Sd/- Sd/- ( जी. मंज ु नाथ ) ( महावीर संह ) ( G.Manjunatha ) ( Mahavir Singh ) लेखा सद%य / Accountant Member उपा य / Vice-President चे(नई/Chennai, )दनांक/Date: 29.03.2023 DS आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.