S-237, LAKSHMAYUR PRIMARY AGRICULTURAL CO-OP. CREDIT SOCIETY,SALEM V. ITO, WARD-1(6), SALEM

ITA 1910/CHNY/2024

AI Insights

The case involves the Lakshmayur Primary Agricultural Cooperative Credit Society appealing against an ex parte order by the Learned Commissioner of Income Tax (Appeals), Delhi. The society claimed that they did not receive any notices of hearing due to network glitches. The Tribunal noted that the CIT(A) did not decide the grounds of appeal as required under section 250(6) of the Income Tax Act, 1961. Additionally, the original assessment was made under section 144 of the Act due to non-appearance of the assessee, which was attributed to the unawareness of the official handling tax matters. The Tribunal, referencing the Supreme Court's decision in TIN Box Co. v. CIT, restored the matter to the AO for a fresh assessment, emphasizing the need for proper opportunity and procedure.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107125 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 15-07-2024
• Other Referred Cases: TIN Box Co. v. CIT [2001] 249 ITR 216 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOWTHAMI MANIVASAGAM
• Assessee Lawyers: SENTHIL KUMAR
• Keywords: Set aside
• Section: 250

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद\t क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1910/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 S-237, Lakshmayur Primary- Agricultural Co-op. Credit Society, Lakshmayur, Omalur, Salem-636 016. v. The ITO, Ward-1(6), Salem. [PAN: AAEAS 8634 H] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.Senthil Kumar, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms. Gowthami Manivasagam, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 24.09.2024 घोषणाक\u001aतारीख /Date of Pronouncement : 04.12.2024 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Primary Agricultural Cooperative Credit Society against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short \"the Ld.CIT(A)”), Delhi, dated 24.05.2024. 2. At the outset, the Ld.AR of the assessee pointed out that the Ld.CIT(A) has passed an ex parte order qua assessee. According to the ITA No.1910/Chny/2024 (AY 2017-18) S-237, Lakshmayur Primary Agricultural- Co-op. Credit Society :: 2 :: assessee, it didn’t receive any notices of hearing due to glitches in the network/computer. Be that as it may, we note that the Ld.CIT(A) has not decided the grounds of appeal as stipulated under sub-section (6) of section 250 of the Income Tax Act, 1961 (hereinafter in short \"the Act\"). Therefore, we are inclined to set aside the impugned order of the Ld.CIT(A). 3. In addition to the above infirmity of the impugned order, it was also brought to our notice by the Ld.AR that the Assessment Order has been framed by the AO u/s.144 of the Act (best judgment assessment). According to the Ld.AR, omission to appear/respond during the course of assessment proceedings was not deliberate, since the official who handled the tax matters was not aware of the proceedings and therefore, the assessee was in the dark about the ongoing assessment proceedings. Be that as it may, it is noted that the assessee didn’t get proper opportunity before the AO. Therefore, relying on the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC), we restore the assessment back to the file of the AO for de novo assessment and the assessee is directed to file written submissions/relevant documents as called for by the AO in the first round itself. Since there is negligence on the part of the assessee, cost of Rs.5,000/- is imposed which the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of ITA No.1910/Chny/2024 (AY 2017-18) S-237, Lakshmayur Primary Agricultural- Co-op. Credit Society :: 3 :: depositing of the same before the AO and thereafter, the AO to frame the de novo assessment after hearing the assessee in accordance to law. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 04th day of December, 2024, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 04th December, 2024. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\r/Appellant 2. \u000e\u000fथ\r/Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड\u001eफाईल/GF "