M/S. TAMILNADU OPHTHALMIC ASSOCIATION,TIRUCHIRAPALLI V. DCIT, CIRCLE-1, ERODE

ITA 1867/CHNY/2025

AI Insights

The case involves the Tamilnadu Ophthalmic Association, which appealed against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, for the Assessment Year 2020-21. The primary contention in the appeal was the disallowance of certain expenses and income from house property by the Assessing Officer (AO), which was upheld by the CIT(A) due to non-response from the assessee. The Tribunal, considering the principles of natural justice, decided to set aside the CIT(A)'s order and remand the case back for a fresh hearing, allowing the assessee to substantiate its claims with evidence and submissions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772749 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEERAMANY.K.; IRS
• Assessee Lawyers: S. RAMESH
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1867/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2020-21 M/s. Tamilnadu Ophthalmic Association, TNOA Regd. Office: 48, Puthur High Road, (Friends Eye Hospital), Tiruchirappalli, Tamil Nadu-620 017. v. The DCIT, Circle-1, Erode. [PAN: AABTT 3100 H] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.S. Ramesh, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Veeramany.K., IRS सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 07.03.2025 for Assessment Year 2020-21. 2. At the outset, the Ld.AR of the assessee brought to our notice that the appeal has been filed belatedly by ‘30’ days and assessee has filed an affidavit explaining the cause for the delay. Having gone through the Printed from counselvise.com ITA No.1867/Chny/2025 (AY 2020-21) M/s. Tamilnadu Ophthalmic Association :: 2 :: contents of the same, we find that cause for delay was reasonable, so we excuse the same and proceed to hear the assessee’s appeal on merits. 3. The brief facts of the case are that the assessee is an AOP/BOI and during the concerned year the assessee earned income of Rs.1,49,68,053/- under the head ‘Income from other sources’ against which expenses were claimed u/s 57 of the Act amounting to Rs.1,18,09,228/-. Since, assessee failed to substantiate its claim for deduction of expenditures the AO disallowed the same. Further AO disallowed income from house property of Rs.15,76,750/-. The ld.CIT(A) confirmed the addition on account of no response from the assessee. 4. Aggrieved, assessee is in appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 6. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence. Accordingly, the impugned order is set aside and the appeal is restored back to the appeal file to the Ld. CIT(A) for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by Printed from counselvise.com ITA No.1867/Chny/2025 (AY 2020-21) M/s. Tamilnadu Ophthalmic Association :: 3 :: the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the ld.CIT(A). 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "