S ARUNACHALAM,THANJAVUR V. ITO WARD 1 THANJAVUR, THANJAVUR

ITA 2908/CHNY/2024

AI Insights

The case involves S. Arunachalam, the appellant, who contested an order from the Income Tax Officer, Ward-1, Thanjavur, regarding the assessment year 2016-17. The Assessing Officer had made an addition by disallowing 10% of the expenses claimed by the assessee. The assessee's appeal to the CIT(A) was dismissed due to non-compliance, as he failed to respond to three notices. The assessee argued that he did not receive these notices and only became aware of the issue upon receiving a recovery notice. The Tribunal found merit in the assessee's request for a re-hearing, citing natural justice, and remanded the case back to the CIT(A) for a decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107186 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Assessee Lawyers: M.K.RANGASWAMY
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2908/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2016-17 S. Arunachalam, No.188-B, Sachinathan Chettiyar Road, Pattukottai, Thanjavur – 614 601. Vs. The Income Tax Officer, Ward-1, Thanjavur. [PAN: AFDPA 7018N] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथH की ओर से/ Appellant by : Shri M.K.Rangaswamy, FCA JKथH की ओर से /Respondent by : Ms. Pushpa Hemachand, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-3, Bengaluru [hereinafter “CIT(A)”] dated 05.03.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) on 29.12.2019. ITA No.2908/Chny/2024 :- 2 -: 2. The assessee is an individual and filed his return of income on 16.10.2016 admitting total income of Rs. 8,11,920/-. During the course of assessment proceedings, the A.O has passed order u/s. 143(3) r.w.s 147 of the Act and made addition disallowing 10% of the expenses. Aggrieved, the assessee filed an appeal before the Ld. CIT(A). The Ld CIT(A) dismissed the appeal as assessee has not made any submission in response to three notices issued. 3. The Ld. Authorized Representative (A.R.) of the assessee has submitted that the assessee could not comply with the notices as he has not received any of the notices and he came to know only when recovery notice was received manually . The Ld. A.R has submitted that as the order has been passed ex-parte, one more opportunity may be provided in the interests of justice to substantiate his case before Ld. CIT(A). 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. On perusal of the order of Ld. CIT(A), we find that the order was passed ex-pare due to the non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not ITA No.2908/Chny/2024 :- 3 -: decided the case on merits, therefore the case may be remanded back to the Ld. CIT(A) for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee should be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A) 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 Ld. CIT(A). Accordingly, we remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st January, 2025. EDN/- ITA No.2908/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, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "