M/.S. LAKKNA HOUSING PVT. LTD.,CHENNAI V. ACIT, CORPORATE CIRCLE-4(1), CHENNAI

ITA 2307/CHNY/2024

AI Insights

The case involves M/s. Lakkna Housing Private Limited, which appealed against the orders of the Commissioner of Income Tax (Appeals) for the assessment years 2016-17 and 2017-18. The appeals were directed against the ex parte orders passed without sufficient opportunity for the assessee to present their case. The background of the case includes a search under section 132 of the Income Tax Act, 1961, at the premises of M/s. Baalakh Holdings Group and a director of the assessee company, which led to the seizure of documents that impacted the income determination of the assessee. The Assessing Officer, after a detailed examination, made significant additions to the assessee's declared income for both years. The CIT(A) dismissed the appeals due to non-response from the assessee to the hearing notices. The Tribunal, considering the circumstances and the submissions, decided to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29951 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A. SASIKUMAR
• Assessee Lawyers: R. SUBRAMANIAN
• Section: 143(3); 250; 132; 153C

Judgement Text

" आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी धु᭪वुᱧ आर.एल रे᲻ी, उपा᭟यᭃ एवं ᮰ी एस.आर.रघुनाथा, लेखा सद᭭य के समᭃ BEFORE SHRI DUVVURU RL REDDY, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं/.ITA Nos.:2307 & 2308/CHNY/2024 िनधाᭅरणवषᭅ/Assessment Years:2016-17 and 2017-18 M/s. Lakkna Housing Private Limited, No. 97/2A, Harini Avenue, Velacherry Main Road, Guindy Industrial Estate, Guindy, Chennai 600 032. [PAN: AABCL3350L] Vs. The Assistant Commissioner of Income Tax, Corporate Circle 4(1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओ रसे/Appellant by : Shri R. Subramanian, C.A. ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri A. Sasikumar, CIT सुनवाई कᳱ तारीख/Date of Hearing : 27.03.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 28.03.2025 आदेश/ O R D E R PER DUVVURU RL REDDY, VICE-PRESIDENT: Both the appeals filed by the assessee are directed against separate orders of the ld. Commissioner of Income Tax (Appeals), Chennai 18, Chennai both dated 19.08.2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2016-17 and 2017-18. 2. Common issues are raised in both the appeals, hence, they were heard together and are being disposed off by this consolidated order. The - 2 - ITA Nos.2307 & 2308/Chny/2024 solitary issue argued on merits is with regard to the exparte order passed by the ld. CIT(A) without affording sufficient opportunity to the assessee. 3. The assessee filed its return of income for the assessment year 2016-17 on 17.10.2016 admitting total income of ₹.29,69,990/-. For the assessment year 2017-18, the assessee filed its return on 07.11.2017 admitting income of ₹.31,21,160/-. A search under section 132 of the Income Tax Act, 1961 [“Act” in short] was conducted in the case of M/s. Baalakh Holdings Group and the residential premises of Shri R.V. Raajah, who is one of the director of the assessee company [M/s. Lakkna Housing Private Ltd.]. During the search, loose sheets and a pen drive seized from the premises belong to the assessee. The material seized in case of Shri R.V. Raajah, who is the director of the company have got a bearing on the determination of the income of the assessee company. Accordingly, the Assessing Officer issued notice under section 153C of the Act requiring the assessee to file return of income for both the assessment years. Vide letter dated 06.12.2019, the assessee requested to treat the original return of income as filed in response to the notice under section 153C of the Act. After verifying the details given by the assessee and based on the verification of books of accounts and other documents furnished by the assessee, the Assessing Officer completed the assessment AYs 2016-17 & 2017-18 under section 153C r.w.s. 143(3) of the Act dated 30.12.2019 and determined the income of the assessee at ₹.3,00,08,890/- and - 3 - ITA Nos.2307 & 2308/Chny/2024 ₹.1,31,21,158/- for AYs 2016-17 & 2017-18 respectively after making various additions. 4. Aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) for both the assessment years under consideration. Since there was no response to the hearing notices from the assessee and could not furnish any documentary evidence to substantiate its claim, the ld. CIT(A) dismissed both the appeals filed by the assessee. 5. On being aggrieved, the assessee is in appeal before the Tribunal for both the assessment years. The ld. counsel for the assessee has submitted that due to the circumstances beyond its control, the assessee could not furnish detailed explanation/documentary evidence before the ld. CIT(A). Thus, he prayed that one more opportunity may be afforded to the assessee to pursue its case before the ld. CIT(A). 6. On the other hand, the ld. DR supported the order passed by the ld. CIT(A) and submitted that the assessee has not respond to the hearing notices issued by the ld. CIT(A). 7. We have heard both the parties, perused the material available on record and gone through the orders of authorities below. We note that the assessee has not respond to the hearing notices issued by the ld. CIT(A). We also note that in the absence of written submissions - 4 - ITA Nos.2307 & 2308/Chny/2024 supported by documentary evidence to have a fair adjudication, the ld. CIT(A) dismissed the appeals of the assessee. On perusal of the impugned order, we note that there was no assistance from the assessee to the hearing notices issued by the ld. CIT(A). Considering the facts and circumstances of the case and submissions of the ld. AR and the ld. DR, in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(A) to decide the issue afresh after considering the written submissions/documentary evidence as may be filed by the assessee to substantiate its claim. The assessee is also directed to furnish proper explanation with documentary evidences to substantiate its claim before the ld. CIT(A) without fail, otherwise, the order of the ld. CIT(A) stands sustained. Thus, the ground raised by the assessee is allowed for statistical purposes for both the assessment years under consideration. 8. In the result both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 28th March, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सद˟/ ACCOUNTANT MEMBER (धु᭪वुᱧ आर.एल रे᲻ी) (DUVVURU RL REDDY) उपाȯƗ /VICE PRESIDENT चे᳖ई/Chennai,ᳰदनांक/Date: 28.03.2025 Vm/- - 5 - ITA Nos.2307 & 2308/Chny/2024 आदेशकीŮितिलिपअŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकरआयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीयŮितिनिध/DR & 5. गाडŊफाईल/GF. "