KAILASHKUMAR JAIN & SONS (HUF),CHENNAI V. ITO, NCW-5(1), CHENNAI

ITA 466/CHNY/2025

AI Insights

The case involves M/s. Kailashkumar Jain & Sons (HUF), who appealed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment years 2017-18 and 2018-19. The assessments for these years were completed on a best judgment basis under section 144 of the Income Tax Act, 1961, due to non-compliance by the assessee. The Tribunal noted the assessee's lack of familiarity with the e-proceedings and faceless system, which led to their non-cooperation. Despite this, the Tribunal decided to provide a final opportunity for the assessee to present their case, emphasizing the principles of justice and equity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298619 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOWTHAMI MANIVASAGAM
• Assessee Lawyers: D.ANAND
• Keywords: Principle of natural justice
• Section: 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी अिमताभ शु᭍ला, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.: 465 & 466/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Years:2017-18 & 2018-19 M/s. Kailashkumar Jain & Sons (HUF), No.52, Ground Floor, General Muthiah Street, Elephant Gate, Sowcarpet, Chennai – 600 079. PAN: AAGHK 9839R Vs. The Income Tax Officer, Non-Corporate Ward 5(1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri D. Anand, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gowthami Manivasagam,JCIT सुनवाई कᳱ तारीख/Date of Hearing : 23.04.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 23.04.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals at the instance of the assessee are directed against the orders of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi dated 06.12.2024 & 31.12.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2017-18 and 2018-19. - 2 - ITA No.465 & 466/CHNY/2025 2. At the very outset, we notice that the assessments for the assessment years 2017-18 & 2018-19 have been completed on best judgment basis u/s.144 of the Act on 20.12.2019 & 13.03.2024 respectively. Further the CIT(A)’s order is also ex-parte, since there was no compliance from the assessee to the seven notices issued from the office of the First Appellate Authority. 3. The Ld.AR submitted that the assessee is not a computer literate and is not familiar with e-proceedings and faceless system adopted by the Department. Hence, the assessee failed to take note of hearing notices, resulting in non-cooperation of assessee during the assessment proceedings and appellate proceedings. It was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case. 4. The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 5. We have heard rival submissions and perused the materials on record. Since there was no response by the assessee to the notices - 3 - ITA No.465 & 466/CHNY/2025 issued, the CIT(A) passed ex-parte orders. We strongly deprecate the nonchalant attitude of the assessee. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case. Since the proceedings before the AO is also best judgment assessment, we deem it appropriate to restore the matter to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 6. In the result, the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 23rd April, 2025 at Chennai. Sd/- Sd/- (अͧमताभ शुÈला) (AMITABH SHUKLA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the April, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "