M/S. BALAJI STUDIOS,CHENNAI V. ASSESSING OFFICER, DELHI

ITA 2794/CHNY/2024

AI Insights

This case involves an appeal by M/s. Balaji Studios against the order of the Learned Commissioner of Income Tax (Appeals), which was passed ex parte. The primary grievance of the appellant was the lack of a decision on merits concerning their appeal for the Assessment Year 2018-19. The tribunal noted that the Ld.CIT(A) had not adhered to the requirements of sub-section (6) of section 250 of the Income Tax Act, 1961, which mandates a decision on the merits of the case. The tribunal found that the Ld.CIT(A) had dismissed the appeal due to the appellant's repeated requests for adjournments, which led to a conclusion that the appellant was not interested in prosecuting the appeal. The tribunal, emphasizing the principles of natural justice and fair play, decided to remand the case back to the Ld.CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 106990 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHWIN D. GOWDA
• Keywords: Set aside; Principle of natural justice
• Section: 250

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम\u001d BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2794/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2018-19 M/s.Balaji Studios, 14/18, Balaji Avenue, 2nd Street, Thirumalaipillai Road, T Nagar, Chennai-600 0017. v. The ITO, CHE-W-(115)(94), Chennai. [PAN: AAQFB 0388 J] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : None \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Ashwin D. Gowda, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 28.01.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.02.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, dated 27.08.2024 for the Assessment Year (hereinafter referred to as ‘AY‘) 2018-19. ITA No.2794/Chny/2024 (AY 2018-19) M/s.Balaji Studios :: 2 :: 2. None appeared for the assessee, even though, several notices have been issued to the assessee. After going through the grounds of appeal filed by the assessee, it is noted from the perusal of Ground No.1 that assessee is mainly aggrieved with the order of the Ld.CIT(A) passing ex- parte order qua assessee. In this regard, it is noted that the Ld.CIT(A) has not passed the order on merits as required by sub-section (6) of section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘ the Act‘). It is noted that the Ld.CIT(A) fixed the matter on several occasions but the assessee despite getting the notices had preferred to seek adjournment on various grounds which led the Ld.CIT(A) to observe that assessee was not interested in prosecuting his appeal, and dismissed the appeal, which action of the Ld.CIT(A) has been assailed being in violation of natural justice. The assessee by raising the ground of appeal prays for one more opportunity before the Ld.CIT(A). 3. Per contra, the Ld.DR does not want us to give one more innings to the assessee. 4. Having heard both the parties and after perusal of records, we note that impugned order of the Ld.CIT(A) is an ex parte order qua assessee. We note that the Ld.CIT(A) has not decided the grounds of appeal on merits as required u/s.250(6) of the Act. In such circumstances, for the ends of justice and fair play, we set aside the impugned order of the ITA No.2794/Chny/2024 (AY 2018-19) M/s.Balaji Studios :: 3 :: Ld.CIT(A) and restore the appeal back to the file of the Ld.CIT(A) with a direction to decide the appeal on merits after hearing the assessee. The assessee is also directed to be diligent and file relevant documents/written submissions before the Ld.CIT(A) and the Ld.CIT(A) is directed to decide the issue as per sub-section (6) of sec.250 of the Act. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 26th day of February, 2025, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 26th February, 2025. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\f/Appellant 2. \r\u000eथ\f/Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\rितिनिध/DR 5. गाड\u001dफाईल/GF "