SIVAMAI WINES, PUDUCHERRY V. ITO WARD 1, NAGAPATTINAM

ITA 694/CHNY/2023

AI Insights

The case involves an appeal by M/s. Sivamani Wines against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which was initially decided ex-parte. The primary contention was the violation of the principles of natural justice, as the CIT(A) had not provided a speaking order despite the assessee's absence in previous hearings. The Tribunal highlighted the statutory obligation of the CIT(A) to decide on merits and provide a reasoned judgment, regardless of the circumstances of the appeal's presentation.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132690 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-08-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 28-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARUNACHALESH
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3)

Judgement Text

अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ,चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं ᮰ी मनोज कुमार अᮕवाल, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 694/CHNY/2023 िनधाᭅरण वषᭅ /Assessment Year: 2015-16 M/s. Sivamani Wines, 12 12, Nallathur Road, Nedungadu, Pondicherry – 609 603. PAN: ABQFS 9894M v. The Income Tax Officer, Ward-1, Nagapattinam. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Arunachalesh, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. M.S. Deeptha, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 31.08.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 31.08.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) vide Order No.ITBA/NFAC/S/250/2022- 23/1051675497(1) dated 30.03.2023. The assessment was framed by the Income Tax Officer, Ward 1, Nagapattinam for the 2 I.T.A. No.694/Chny/2023 assessment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 29.12.2017. 2. At the outset, the ld.counsel for the assessee stated that the order of CIT(A) is ex-parte and it is in violation of principles of natural justice. The ld.counsel for the assessee took us through the order of CIT(A) and stated that the CIT(A) has decided the appeal ex-parte without adjudicating the issue by a non-speaking order. When this was brought to the notice of ld. Senior DR, she stated that various opportunities were given to the assessee to furnish written submissions but assessee has not availed the opportunity. The ld.Senior DR further stated that ample opportunities are given then the CIT(A) has no option to decide the appeal ex-parte. On further query, whether the matter is decided on merits by ld.CIT(A), the ld.CIT-DR could not answer and stated that the order is non- speaking. 3. After hearing rival contentions and going through the facts of the case, we are of the view that this being a statutory appeal the CIT(A) is duty bound to decide the appeal on merits even though, he decides ex-parte. As the CIT(A) has not passed a speaking order, we set aside the order of CIT(A) and remit the matter back to his 3 I.T.A. No.694/Chny/2023 file for fresh adjudication. Needless to say that the CIT(A) will allow reasonable opportunity of being heard to the assessee and assessee is also directed to represent its case as and when notice is issued, otherwise adverse view can be taken against the assessee. 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 31 st August, 2023 at Chennai. Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य/ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 31 st August, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ /CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF.