PALANI RADHAKRISHNAN,DHARMAPURI V. ITO, WARD-1, DHARMAPURI

ITA 1160/CHNY/2025

AI Insights

The case involves Palani Radhakrishnan, a proprietor of M/s. Jaisakthi Transport and M/s. Sri Jaisakthi Traders, who appealed against the assessment order for the Assessment Year 2021-22. The Assessing Officer had disallowed 5% of the total expenses claimed by the assessee, citing a low net profit margin of 1.5%. The assessee's appeal to the CIT(A) was dismissed ex-parte due to non-submission of written submissions. The Tribunal found that the CIT(A) had confirmed the disallowance without adjudicating on the merits and thus remitted the case back to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669483 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: JAI V. VAIRAV; C.A
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1160/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2021-22 Palani Radhakrishnan, No.78-A, Weavers Colony, Darmapuri – 636 701. [PAN:AOBPK 5187R] Vs. The Income Tax Officer, Ward-1, Darmapuri. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थE की ओर से/ Appellant by : Shri Jai V. Vairav, C.A GHथE की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 27.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2021-22 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 28.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 19.12.2022. ITA No1160/Chny/2025 Palani Radhakrishnan :- 2 -: 2. The assessee is a proprietor of M/s. Jaisakthi Transport and M/s. Sri Jaisakthi Traders, engaged in the business of tyre trading and also in the transportation of food grains as a sub-contractor. The A.O completed the assessment u/s. 143(3) r.w.s 144B of the Act (hereinafter \"the Act\") and disallowed 5% of the total expenses, as the net profit declared was only 1.5%. Aggrieved by the disallowance, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) passed an ex-parte order stating that the assessee had not filed any written submissions. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) had dismissed the appeal without providing property opportunity of being heard and therefore, requested one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A). 4. On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the disallowance made by the A.O ITA No1160/Chny/2025 Palani Radhakrishnan :- 3 -: solely on account of non-compliance by the assessee, without adjudicating the issue on merits. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 27th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 27th June, 2025. EDN/- ITA No1160/Chny/2025 Palani Radhakrishnan :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "