KAYYES KAY TRADE LINKS PRIVATE ,CHENNAI V. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX , TAMIL NADU

ITA 3132/CHNY/2024

AI Insights

The case involves an appeal by M/s. Kay Yes Kay Trade Links Private Limited against the order of the CIT(A)/NFAC, which was passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2018-19. The appeal was initially dismissed ex-parte as the assessee failed to respond to multiple notices. The assessee's representative argued that the CIT(A) did not consider the merits of the case before passing the order. The Tribunal, considering the circumstances and in the interest of justice, decided to provide another opportunity to the assessee and remitted the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 469614 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• 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: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: BIMLENDU BHUSHAN
• Section: 250

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛन IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3132/CHNY/2024 िनधाᭅरण वषᭅ/Assessment Year: 2018-19 M/s. Kay Yes Kay Trade Links Private Limited, #48, Elephant Gate Street, Sowcarpet, Chennai-600 079. PAN: AAECK-5197-P Vs. Assistant Commissioner of Income Tax Corporate Ward-4(3) Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Mr. Bimlendu Bhushan,CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 25.02.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 26.02.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: 1. This appeal at the instance of the assessee is directed against CIT(A)/NFAC’s order dated 14.10.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19. 2. At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. In response to seven hearing notices and show cause notice issued from the office of the - 2 - ITA No. 3132/CHNY/2024 AO, the assessee has not complied with notices. Before the First Appellate Authority also the assessee has not furnished its submissions or any documentary evidences. Consequently, the appeal of the assessee was dismissed ex-parte qua assessee. 3. The ld.AR stated that the assessee twice sought for adjournment applications on 10.09.2024 & 14.10.2024 before the CIT(A). However, rejecting the same the First Appellate Authority passed the impugned order without considering the appeal on merits. It was submitted by the Ld.AR, in the interest of justice and equity, the assessee may be provided with one more opportunity to represent its case before the AO, since it was a best judgment assessment u/s.144 of the Act. 4. The ld.DR supported the order of the AO and the CIT(A). 5. We have heard rival submissions and perused the materials on record. The Office of the First Appellate Authority had issued five hearing notices. It was the contention of the ld.AR that though the assessee had sought for adjournments twice on 10.09.2024 and 14.10.2024 the same were rejected and CIT(A) passed the impugned order. Therefore, in the interest of justice and fair play, we are of the view that one more opportunity should be provided to the assessee to represent his case. Since the proceedings before - 3 - ITA No. 3132/CHNY/2024 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 appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th February, 2025. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 26th February, 2025 DS आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai/Salem 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "