POTHANUR PACB LTD.,NAMAKKAL V. THE INCOME TAX OFFICER, WARD_ 2, NAMAKKAL

ITA 1328/CHNY/2025

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The case involves Pothanur PACB Ltd., the appellant, contesting an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issue was the confirmation of the Assessing Officer's order, which added certain amounts to the assessee's income due to the non-submission of member details during the assessment proceedings. The assessee filed additional evidence during the appeal, which was initially opposed by the respondent but later admitted by the Tribunal. The Tribunal found the reasons for the initial non-submission of details to be valid and directed the Assessing Officer to reconsider the case with the new evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772718 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax (Appellate Tribunal) Rules, 1963
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C. SIVAKUMAR
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN; F.C.A
• Keywords: Condonation of delay; Additional evidence

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.1328/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Pothanur PACB Ltd., S.390, Pothanur Road, Paramathi Velur, Namakkal 638 182. [PAN:AAABP0259L] Vs. The Income Tax Officer, Ward 2, Namakkal. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri T.S. Lakshmi Venkataraman, F.C.A ŮȑथŎ की ओर से/Respondent by : Shri C. Sivakumar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 21.08.2025 घोषणा की तारीख /Date of Pronouncement : 26.08.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 18.11.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2017-18. 2. We find that this appeal is filed with a delay of 97 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really Printed from counselvise.com I.T.A. No.1328/Chny/25 2 prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 4 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the order of the Assessing Officer in the facts and circumstances of the case. 4. At the outset, we note that the Assessing Officer made addition by holding that the assessee could not submit details of Members during the course of assessment proceedings. We note that the said details are filed before us by placing on record consisting of 15 pages. The ld. AR Shri T.S. Lakshmi Venkataraman, F.C.A. also filed a petition to admit the same by way of additional evidence under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963. The ld. DR Shri C. Sivakumar, Addl. CIT vehemently opposed the same and submits that there is no clarity in the list provided by the assessee. 5. On perusal of the assessment order, we note that the Assessing Officer asked the assessee to furnish the details of Members to whom credit facilities are extended and break-up of such details of Ordinary Members and Nominal Members, but, however, the assessee did not Printed from counselvise.com I.T.A. No.1328/Chny/25 3 furnish the Members list during the course of assessment proceedings, which is clear from para 4.3 & 4.4 of the assessment order. Taking into consideration of the same and in the interest of justice, the petition for admission of addition evidence is allowed and consequently, the Assessing Officer is directed to consider the said list of Members and pass the order accordingly. Thus, the ground raised by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th August, 2025 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 26.08.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "