M/S PREMIER ENTERPRISESS , PONDICHERRY V. ACIT , CIRCLE - 1 , PONDICHERRY

ITA 790/CHNY/2022

AI Insights

The case involves M/s. Premier Enterprises, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was concerning the assessment year 2017-18, where the assessee was aggrieved by the addition of Rs. 135.30 Lacs to its income, representing cash deposits made during the demonetized period. The Assessing Officer had added this amount to the income of the assessee as the source of the cash deposits was not substantiated. The CIT(A) upheld the assessment due to non-compliance by the assessee during the appellate proceedings. The Tribunal, considering the principles of natural justice, decided to set aside the order and remand the case back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133824 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-09-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N. ARJUNRAJ C.A; S. SRIDHAR LD. ARS
• Keywords: Principle of natural justice

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.790/Chny/2022 (िनधाBरण वषB / Assessment Year: 2017-18) M/s. Premier Enterprises No.1, 5 th Cross, Venkata Nagar, Pondicherry – 605 011. बनाम/ V s. ACIT Circle-1, Pondicherry. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . AAH FP -1 4 0 7 - D (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri N. Arjunraj (C.A) & Shri S. Sridhar (Advocate) – Ld. ARs थ की ओरसे/Respondent by : Shri AR. V Sreenivasan (Addl. CIT) –Ld. DR सुनवाई की तारीख/Date of Hearing : 28-02-2023 घोषणा की तारीख /Date of Pronouncement : 28-02-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-05-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 27-12-2019. The sole grievance of the assessee is confirmation of addition of Rs.135.30 Lacs, being cash deposited during demonetized period. The Ld. AR, at the outset, drawing attention to the orders of lower authorities, pleaded ITA No.790/Chny/2022 - 2 - for another opportunity of hearing which has been opposed by Ld. Sr. DR. 2. The assessee has been saddled with impugned additions since the assessee could not furnish any documents to prove the source of cash deposit during demonetized period. Accordingly, the same was added to the income of the assessee. Though the assessee preferred further appeal, however, it remained non-compliant during appellate proceedings which led to confirmation of assessment order. Aggrieved, the assessee is in further appeal before us. 3. After careful consideration of impugned order, we concur with the submissions of Ld. Sr. DR that the assessee has remained non- compliant. However, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the impugned order is set-aside and the appeal is restored back to the file of Ld. CIT(A) for de novo adjudication with a direction to the assessee to substantiate its case. The assessee would be provided with reasonable opportunity of hearing. In the event of failure on the part of the assessee to make any submissions, Ld. CIT(A) shall proceed to adjudicate the issue on the basis of material on record. 4. The appeal stand allowed for statistical purposes. Order pronounced on 28 th February, 2023. Sd/- (MAHAVIR SINGH) उपा1क् ष /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद9 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 28-02-2023 EDN/- ITA No.790/Chny/2022 - 3 - आदेश की Wितिलिप अ 6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF