REKHA MUSADDY,CHENNAI V. .ITO, NCW-1(6), CHENNAI

ITA 2703/CHNY/2024

AI Insights

The case involves Rekha Musaddy, an individual engaged in the business of trading earth moving equipment and spares, who appealed against the assessment order for the Assessment Year 2018-19. The Assessing Officer had made several additions to her income, including the estimated annual net value of property, additions on unsecured loans, unexplained credits, and interest disallowances. The initial appeal to the CIT(A) was dismissed ex-parte without merit discussion. The Tribunal found that the CIT(A) had not provided sufficient opportunity to the assessee to substantiate her case and thus decided to set aside the lower authorities' orders and remand the case back to the Assessing Officer.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107250 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• 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: R. VENKATA RAMAN; C.A
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2703/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2018-19 Rekha Musaddy, Flat No.G-1, Dorr No.6, 4th Street, Nandanam Extn., Chennai – 600 035. Vs. The Income Tax Officer, Non Corporate Ward-1(6), Chennai. [PAN: ADBPR 6907R] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थH की ओर से/ Appellant by : Shri R. Venkataraman, C.A JKथH की ओर से /Respondent by : Ms. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 17.12.2024 घोषणा की ता रीख /Date of Pronouncement : 20.12.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 02.09.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 143(3A) & 143(3B) of the Income-tax Act, 1961 (hereinafter “the Act”). ITA No.2703/Chny/2024 :- 2 -: 2. The assessee is an individual and engaged in the business of trading of earth moving equipments and spares and iron and steel in the name of Ayush Earthmovers. The A.O has completed the assessment u/s. 143(3) of the Act estimating the annual net value of property assessed at Rs. 34,80,000/-, addition on unsecured loans u/s. 68 of the Act of Rs. 15,00,000/-, unexplained credits of Rs. 2,50,000/- and interest on unsecured loans of Rs. 4,28,725/-, and interest disallowance of Rs. 39,04,542/-. Aggrieved, the assessee preferred appeal before Ld. CIT(A), the Ld. CIT(A) has dismissed the appeal ex- parte without discussing the case on merits. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted the Ld. CIT(A) has dismissed the appeal without discussing the case on merits and without providing sufficient opportunity to the assessee and requested to provide one more opportunity to substantiate his case. 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. The Ld. CIT(A) had dismissed the appeal without ITA No.2703/Chny/2024 :- 3 -: discussing the case on merits. The Ld. CIT(A) has stated that the assessee is not in a position to submit documents in support of his case. The Ld. AR before us has submitted that all the material available to substantiate their claim and therefore, one more opportunity should be provided to substantiate her case in the interest of justice. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we set aside the orders passed by the lower authorities and restore the matter back to the file of the A.O for denovo adjudication after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the A.O 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 20th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th December, 2024. EDN/- ITA No.2703/Chny/2024 :- 4 -: आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "