SMT. RATHINAM CHETTIAR BALAMMAL, MADURAI V. ACIT, NON CORPORATE CIRCLE-1, MADURAI

ITA 699/CHNY/2022

AI Insights

The case involves an appeal by Smt. Rathinam Chettiar Balammal against the order of the Commissioner of Income Tax (Appeals), which pertained to a penalty levied under section 271B of the Income Tax Act, 1961 for the assessment year 2016-17. The primary contention was that the CIT(A) had passed a non-speaking and cryptic order without considering the assessee's submissions. The Tribunal found that the CIT(A) had indeed failed to address the assessee's reply adequately and thus set aside the CIT(A)'s order, remanding the case for a detailed re-assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134874 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-01-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 16-08-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर 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.: 699/CHNY/2022 िनधाᭅरण वषᭅ/Assessment Year: 2016-17 Smt. Rathinam Chettiar Balammal, No.130, South Avani Moola Street, Madurai – 625 001. PAN: AAZPB 4131G vs. The ACIT, Non Corporate Circle 1, Madurai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri G. Avnish, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri AR.V. Sreenivasan, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 19.01.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 19.01.2023 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in Appeal No.CIT(A), Madurai-2/10062/2019-20 dated 20.06.2022. The assessment was framed by the ACIT, Non- Corporate Circle-1, Madurai for the assessment year 2016-17 u/s.271B of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 28.06.2019. 2 ITA No. 699/Chny/2022 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) levying penalty u/s.271B of the Act. For this, assessee has raised various argumentative grounds which need not be reproduced. 3. At the outset, the ld.Counsel for the assessee took us through Ground No.4, that the CIT(A) failed to apply his mind on the submissions of the assessee and erred in passing a non-speaking order. For this, he relied on following ground No.4:- “4. The learned CIT (Appeals) failed to apply mind on the submission and erred in passing a non-speaking order” 4. The ld.counsel for the assessee took us through the written submissions, statement of facts and grounds of appeal raised before CIT(A). He also took us through appellate order passed by CIT(A) and stated that the appeal was fixed before National Faceless Appeal Centre, Delhi twice i.e., on 10.03.2021 and 13.05.2022 by virtue of which, reply was filed vide letter dated 07.06.2022. The order of CIT(A) was dated 20.06.2022 but this reply was actually not considered by CIT(A) and he passed a cryptic and non-speaking order, in which he observed in para 7 as under:- “7. Facts of the case have been carefully perused. No reason has been furnished by the appellant in spite of reasonable opportunities given by the AO & NFAC. There is no reason to interfere with the AO’s order.” 5. When the above facts were confronted to ld. Senior DR, he could not controvert the fact situation, however he argued that the CIT(A) 3 ITA No. 699/Chny/2022 has considered the assessee’s reply dated 07.06.2022. On query from the Bench, he could not show us where is the adjudication by the CIT(A) by a speaking order. 6. After hearing both the sides and going through the facts of the case, we are of the view that the order of CIT(A) is totally non- speaking order and hence, cannot stand to the test of scrutiny of law. Hence, we set aside the order of CIT(A) and remand the matter back to his file for passing a speaking order after considering the material placed before him and also provide opportunity of hearing to the assessee. In term of the above facts, we restore the matter back to the file of the CIT(A) and appeal of the assessee is allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19 th January, 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 19 th January, 2023 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकरआयुᲦ (अपील)/CIT(A) 4. आयकरआयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.