NATARAJAN,CHENNAI V. ACIT NON CORP CIRCLE 8(1), CHENNAI

ITA 1336/CHNY/2024

AI Insights

The case involves an appeal by the assessee, Natarajan, against an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, which pertained to the assessment year 2018-19. The primary contention was the addition of Rs.8,25,275 to the assessee's income, which was disallowed by the AO on grounds related to EPF and ESI employer's contributions without corresponding salary payments. The assessee argued that this was due to an inadvertent mistake in the tax return, where salary was incorrectly categorized under customs duties and taxes. The Tribunal found merit in the assessee's claims and restored the matter to the AO for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 46399 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 03-09-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 03-05-2024
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KEERTHI NARAYANAN
• Keywords: Corroborative evidences

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI श्री एबी टी. वर्की, न्याययर्क सदस्य एवं श्री अमिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.1336/Chny/2024 निर्धारण वर्ा /Assessment Years: 2018-19 Natarajan, 1B and 1D, Silver palm avenue, Ishwarya Nagar, Kilayanamabakkam, Chennai-600 095. [PAN: ACSPN2467N] Asst.Commissioner of Income Tax, Non-Corp.Circle-8(1), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : None प्रत्यर्थी की ओर से /Respondent by : Shri Keerthi Narayanan, JCIT सुनवाई की तारीख/Date of Hearing : 03.09.2024 घोषणा की तारीख /Date of Pronouncement : 13.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2022-23/1043638319(1) dated 28.06.2022 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2018- 19. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 28.06.2022 passed by NFAC, Delhi. ITA No.1336/Chny/2024 :- 2 -: 2.0 It has been noted that there is a delay of 673 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that the assesse is a cancer patient and was having adverse medical issues which contributed to the delay. All these activities contributed to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 The only issue under consideration is the addition of Rs.8,25,275/- made by the Ld. AO through its assessment order dated 24.12.2020. The Ld. Counsel for the assessed informed that the impugned addition was made by the Ld. AO on the premise that the impugned addition of Rs.8,25,275/- was on account of disallowance of EPF and ESI employers contribution and for which there was no corresponding salary payment noted. The Ld. Counsel for the assesse informed that the assesse engaged in the business of selling electrical goods and working as electrical contractor in the name and style of radiant engineering. It was submitted that by an inadvertent mistake the ITA No.1336/Chny/2024 :- 3 -: amount of salary was wrongly put under the head customs duties and taxes paid in Column-7 (i) of ITR form. It was stated that the assesse had paid salary to its employees who were working on site of other companies like Chennai Metro Rail Limited, Royal Enfield Ltd from whom electrical contract work is taken. The Ld. Counsel for the assesse further indicated that it had revised correct details through a belated filed return. It was accordingly pleaded that the matter be restored to the file of the Ld. AO to verify the facts and readjudicate the matter. The Ld. DR relied upon order of the authorities below. 4.0 We have heard rival submissions in the light of material available on records. We have noted that there exists some veracity in the claims of the assesse. The assesse has done a business and shown turnover of nearly Rs.16.97Crs in its profit and loss account for the year ended 31.03.2018. The same cannot be achieved without any employees. In fact the profit and loss account also shows staff welfare expenses are Rs. 6 lakhs app. We are of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and filed supporting evidences before the Ld.AO. Accordingly, placing reliance upon the decision in the case of TIN box 249 ITR 216 the matter is restored to the file of the AO for assessment de novo. We therefore set aside the order of lower authorities on this issue and we direct the Ld. AO ITA No.1336/Chny/2024 :- 4 -: to readjudicate the matter de novo by examining the matter afresh. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non-compliance on the part of the assesse can be adversely viewed. Accordingly, all the grounds of appeal raised by the assesse on this issue are allowed for statistical purposes. 5.0 In the result, the appeal of the assesse is allowed for statistical purposes Order pronounced on 13th , November-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्याययक सदस्य / Judicial Member Sd/- (अमिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनांक/Dated: 13th , November-2024. KB/- आदेश की प्रयतललपप अग्रेपषत/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. पवभागीय प्रयतयनधि/DR 5. गार्ड फाईल/GF "