MVR SHIPPLING SERVICES PVT LTD., CHENNAI V. ITO, CORPORAE WARD-4(1), CHENNAI

ITA 705/CHNY/2023

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The case involves MVR Shipping Services Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was initially delayed by 80 days, for which a condonation petition was accepted. The core issue in the appeal was the addition of \\u20b942,72,574 to the assessee's income, attributed to unexplained credit of \\u20b959,50,000 under sections 144 and 144B of the Income Tax Act. The CIT(A) upheld this addition due to the absence of documentary evidence from the assessee regarding the claimed unsecured loans. The Tribunal found that the assessee was not given a reasonable opportunity to present its case and thus remitted the matter back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135314 (ITAT-CHENNAI)
• Duration Of Justice: 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 25-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 29-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Opportunity of being heard; Additional evidence; TDS; Set aside
• Section: 144; 142(1); 143(2)

Judgement Text

आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ एवं ŵी जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri Manjunatha, G. Accountant Member आयकर अपील सं./I.T.A. No.705/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2018-19 MVR Shipping Services Pvt. Ltd., No. 3, Jaffar Syrang Street, Parrys, Chennai 600 001. [PAN:AABCM4775G] Vs. The Income Tax Officer, Corporate Ward 4(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri N.V. Narayanan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri AR V Sreenivasan, Addl. CIT सुनवाई की तारीख/ Date of hearing : 26.06.2023 घोषणा की तारीख /Date of Pronouncement : 26.06.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi dated 10.01.2023 relevant to the assessment year 2018-19. 2. The appeal filed by the assessee is delayed by 80 days in filing the appeal and filed a petition for condonation of delay in support of an affidavit to which; the ld. DR has not raised any serious objection. I.T.A. No. 705/Chny/23 2 Consequently, since the assessee was prevented by sufficient cause, the delay of 80 days in filing of the appeal stands condoned and the appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee e-filed its return of income for the assessment year 2018-19 on 30.03.2019 declaring return income of ₹. NIL. The case of the assessee was selected for scrutiny through CASS with the reasons as (i) depreciation claim, (ii) default in TDS & disallowance for such default & (iii) unsecured loans. Accordingly, notice under section 143(2) of the Act dated 28.09.2019 was issued. Thereafter notice under section 142(1) of the Act along with questionnaire dated 05.12.2019, 30.12.2019, 13.02.2020 and 24.07.2020 were issued. Since there was no response from the assessee, the Assessing Officer has completed the assessment under section 144 r.w.s. 144B of the Act dated 27.08.2021 by assessing total income of the assessee at ₹.42,72,574/- after making addition towards unexplained credit of ₹.59,50,000/-. On appeal, the ld. CIT(A) upheld the addition made by the Assessing Officer since the assessee could not file any documentary evidence or otherwise for the claim of unsecured loans. 4. On being aggrieved, the assessee is in appeal before the Tribunal against the exparte order of the ld. CIT(A). The ld. Counsel for the I.T.A. No. 705/Chny/23 3 assessee has submitted that the source of the unsecured loans was duly recorded in the books of accounts and therefore, the provisions of section 69A of the Act cannot be invoked. In support of the assessee’s claim, the ld. Counsel for the assessee has filed additional evidence in the form of paper book. It was further submission that the assessee was not afforded reasonable opportunity of being heard. 5. On the other hand, the ld. DR supported the order passed by the ld. CIT(A). 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including the paper book filed. Against the addition of ₹.59,50,000/-, the assessee filed an appeal before the ld. CIT(A). Since the assessee could not file any documentary evidence or otherwise for the claim of unsecured loans, the ld. CIT(A) passed the exparte order by upholding the addition made by the Assessing Officer. On perusal of the appellate order, we find that the ld. CIT(A) has fixed the hearing within short notices. Moreover, the assessee has filed additional evidences in support of its claim before the Tribunal. Accordingly, in the interest of natural justice, we are of the considered opinion that the assessee should be given one more opportunity of being heard to substantiate his claim. Thus, we set aside I.T.A. No. 705/Chny/23 4 the appellate order and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh in accordance with law by affording an opportunity of being heard to the assessee by considering the details as may be filed by the assessee. The assessee is also directed to furnish complete details to substantiate its claim before the ld. CIT(A) without fail. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 26 th June, 2023 at Chennai. Sd/- Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 26.06.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3.आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.