RENUKA,ERODE V. ITO,WARD-1, TIRUCHENGODE

ITA 2315/CHNY/2024

AI Insights

The case involves an appeal by Renuka against the orders of the A.O and CIT(A), which were both passed ex-parte due to non-compliance by the assessee. The A.O had reopened the assessment for A.Y 2011-12 following a significant cash deposit in the assessee's bank account, and assessed the income ex-parte. The CIT(A) also dismissed the appeal ex-parte for non-compliance with notices. The Tribunal found that the principles of natural justice were not followed, as the assessee was not provided adequate opportunity to present her case. Consequently, the Tribunal remanded the case back to the A.O for a fresh assessment, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107029 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Set aside; Principle of natural justice
• Section: 148; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2315/Chny/2024 िनधा:रण वष: /Assessment Year: 2011-12 Renuka, 6/13, 6th Cross, Gandhipuram, Pallipalayam, Erode-636306. Vs. The Income Tax Officer, Ward-1, Tiruchengode. [PAN: ARUPR 0774M] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri S. Sridhar, Advocate (Erode) GHथ की ओर से /Respondent by : Smt. G.Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 20.11.2024 घोषणा की तारीख /Date of Pronouncement : 27.12.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2011-12 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 13.03.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Income Tax Act, 1961 (hereinafter “the Act”) on 17.12.2019. ITA No.2315/Chny/2024 :- 2 -: 2. There is a delay of 114 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly. 3. The assessee has deposited cash of Rs 13,66,900 in her saving bank account maintained with HDFC Bank, Erode but has not filed return of income for A.Y 2011-12. The AO therefore reopened assessment by issuing notice u/s 148. However, the assessee neither filled return of income in response to notice u/s 148 are complied with notices issued during assessment proceeding. The A.O therefore passed ex-parte order assessing income at Rs 49,85,919/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued notices from 20.07.2018 to 23.10.2019, but there was no compliances to the notices and therefore, the Ld. CIT(A) also dismissed the appeal of the assessee ex-parte. 4. The Ld. A.R has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and ITA No.2315/Chny/2024 :- 3 -: both the orders have been passed ex-pare and therefore, the case may be remitted back to the A.O for fresh consideration in intrest of justice. 5. The Ld. Departmental Representative has relied on the orders of the authorities below. 6. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been passed ex-parte for the non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. 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 subject to payment of costs of Rs.5,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. 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 A.O to adjudicate this appeal afresh in ITA No.2315/Chny/2024 :- 4 -: accordance with law, 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 and furnish complete details for her fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 27th December, 2024. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 27th December, 2024. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Coimbatore 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "