RAMESH PRATHIBA,THANJAVUR V. ITO, WARD-1, THANJAVUR

ITA 95/CHNY/2025

AI Insights

The case involves appeals by Smt Ramesh Pratibha against the orders of the Commissioner of Income Tax (Appeals) in Delhi, which confirmed the disallowance of a deduction claimed under section 54F of the Income Tax Act, 1961, amounting to Rs. 2,00,00,000 for the Assessment Year 2018-19. The assessee's return was subjected to limited scrutiny, and due to non-filing of details, the deduction was disallowed. The assessee's appeal to the CIT(A) was confirmed ex-parte, leading to the current appeals. The Tribunal, considering the impact of the COVID-19 pandemic and principles of natural justice, decided to set aside the orders and remand the matter for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29931 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: G. AKASH
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 139(1); 54F

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.Nos.95 & 96/Chny/2025 (िनधा\u0005रण वष\u0005 / Assessment Year: 2018-19) Smt Ramesh Pratibha, M.R. Mahal, Orathanadu Thanjavur-614 625. Vs Income Tax Officer, Ward -1 Thanjavur. PAN : CIBPP-2059-R (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Shri G.Akash, Advocate \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Ms.Anitha, Addl.CIT सुनवाईक\bतारीख/Date of hearing : 03.04.2025 घोषणाक\bतारीख /Date of Pronouncement : 04.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeals filed by the assessee are directed against the orders of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] both dated 20.11.2024 for Assessment Year 2018-2019 in quantum and penalty proceedings. 2. Brief facts are as under: ITA No.95/Chny/2025: The assessee filed her return of income u/s 139(1) on 11.08.2018 for the AY 2018-19. The return was taken up for limited scrutiny to verify the deduction claimed u/s 54F of Rs.2,00,00,000/-. Due to non-filing of details by the assessee, the case was completed u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Income Tax Act, 1961 disallowing claim of deduction u/s 54F amounting to Rs.2,00,00,000/-. 2 ITA Nos.95 & 96/Chny/2025 3. Assessee further challenged the order of assessment u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act before the ld.CIT(A) who proceeded ex-parte and confirmed the order of the AO on merits. 4. Aggrieved, assessee is in appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the CIT(A) has sent the two notices during Covid-19 period which were not received by the assessee, hence the assessee was prevented from appearance on the purported dates. Therefore, he prayed that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his explanation regarding claim of deduction u/s 54F. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in this case and prayed for dismissal of appeal. 6. We do not concur with the submissions of Ld. Sr. DR. However, keeping in mind the Covid-19 pandemic and principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices for the reasons stated above. We also note that even before AO the order is in fact virtually ex-parte. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment on merits after, affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate her case with all evidence and documents regarding claim of deduction u/s 54F, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law. The ld. 3 ITA Nos.95 & 96/Chny/2025 counsel, who appeared has assured the bench that he will ensure that the assessee will prosecute his case diligently. In this respect, the ld. counsel also filed undertaking on behalf of the assessee ITA No. 96/Chny/2025 : 7. This is penalty appeal pursuant to the assessment order. Since, we have set aside and restored back the quantum assessment order to the file of Ld. AO for denovo assessment on merits, therefore, the penalty order is also set aside being consequential. 8. In the result, appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 4th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date:04.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Coimbatore/Madurai 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "