RAJAGOPAL RAMAKRISHNAN,HOSUR V. .ITO, WARD-1, HOSUR

ITA 2712/CHNY/2024

AI Insights

The case involves Shri Rajagopal Ramakrishnan, an individual engaged in the business of a mechanical job worker and seasonal cracker business, who appealed against the order of the CIT(A) - NFAC passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2017-18. The initial assessment was completed on a best judgment basis under section 144 of the Act due to non-response from the assessee to multiple notices. The Tribunal noted the assessee's lack of response was partly due to the notices being sent to a seasonal address and issues with email communication. The Tribunal, considering the principles of natural justice, decided to remand the case back to the AO with specific instructions for a fresh assessment, provided the assessee complied with the monetary condition set.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469597 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: S. SRIDHAR
• Keywords: Principle of natural justice
• Section: 250

Judgement Text

"आयकर अपीलȣय अͬधकरण,‘सी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी जगदȣश, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2712/CHNY/2024 िनधाᭅरण वषᭅ/Assessment Year:2017-18 Shri Rajagopal Ramakrishnan, 69/A, Opp. To Traffic Police Station, Bangalore Road, Hosur – 635 109. PAN: AIHPR 6576K Vs. The Income Tax Officer, Ward 1, Hosur. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri S. Sridhar, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Anitha, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 18.12.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 19.12.2024 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against CIT(A) - NFAC order dated 04.09.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. - 2 - ITA No.2712/CHNY/2024 2. At the very outset, we notice that the assessment has been completed on best judgment basis u/s.144 of the Act on 28.11.2019. Further the CIT(A)’s order is also ex-parte, since there was no response from the assessee to the three notices issued from the office of the First Appellate Authority calling for filing written submission / evidences. 3. The ld.AR submitted that the assessee is an individual carrying on the business of a mechanical job worker and also into seasonal cracker business under the trade name M/s. Sai Venkateswara Agencies. It was submitted that notices were issued in the seasonal address of the assessee. Consequently, the assessee was not on receipt of the same and hence, the assessment was passed u/s.144 of the Act. As regards the proceedings before the First Appellate Authority being ex-parte, it was submitted that the notices were issued within a span of four months and assessee being not well versed in computer / e-mail failed to take note of the notices issued to his e-mail id. It was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case. - 3 - ITA No.2712/CHNY/2024 3. The ld.DR submitted that adequate opportunities were provided from the offices of the AO and the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 4. We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the CIT(A) was ex-parte, since the assessee did not respond to various notices issued. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the AO and the CIT(A). However in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.5,000/- (Rupees five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.5,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. - 4 - ITA No.2712/CHNY/2024 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 19th December, 2024 at Chennai. Sd/- Sd/- (जगदȣश) (JAGADISH) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 19th December, 2024 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Coimbatore 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "