SAHANA CLOTHING CO. PVT. LTD.,DINDIGUL V. ACIT, TDS CIRCLE, MADURAI

ITA 950/CHNY/2025

AI Insights

The case involves Sahana Clothing Company Pvt. Ltd., which appealed against the orders of the Addl/JCIT(A), Patna, concerning the assessment years 2020-21 & 2021-22. The appeals were directed against ex-parte orders due to the assessee's non-compliance with hearing notices. The assessee's representative argued that the notices were not received, leading to their absence during the appellate proceedings. The Departmental Representative contended that adequate opportunities were provided. The Tribunal, considering the circumstances, decided to restore the matter to the FAA for a fair hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711648 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI
• Assessee Lawyers: S.RAMACHANDRAN; R. GURUBATHAM
• Keywords: Principle of natural justice; TDS

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘ए’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं सुĮी पɮमावती एस, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI PADMAVATHY S, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.: 949 & 950/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Years: 2019-20 & 2020-21 Sahana Clothing Company Pvt. Ltd., 15, Batlagundu Road, Pithalaipatty, Dindigul – 624 002. PAN: AAUCS 2984A Vs. The Assistant Commissioner of Income Tax, TDS Circle, Madurai (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri S. Ramachandran, CA & Shri R. Gurubatham, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms.E. Pavuna Sundari, CIT सुनवाई कᳱ तारीख/Date of Hearing : 22.07.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 23.07.2025 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by the assessee are directed against the two different orders of Addl/JCIT(A), Patna both dated 20.03.2025, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2020-21 & 2021-22. Printed from counselvise.com ITA Nos.949 & 950/Chny/2025 :- 2 -: 2. At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to the four hearing notices issued from the office of the First Appellate Authority. 3. The Ld.AR submitted that the hearing notices issued from the office of the First Appellate Authority (FAA) were not sent to the assessee’s email id or there is no real time alert. Therefore, the assessee was unaware of the hearing notices and hence, the assessee could not appear during the appellate proceedings. It was prayed that in the interest of justice and equity, the issue may be restored to the files of the FAA for proper representation of its case. 4. The ld.DR submitted that adequate opportunities were provided from the office of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeals of the assessee may be dismissed. 5. We have heard rival submissions and perused the materials on record. The proceedings before FAA was ex-parte, since the assessee did not respond to various notices issued. The Ld.AR submitted that the assessee could not respond to the hearing notices since the hearing notices were not received by the assessee. In light Printed from counselvise.com ITA Nos.949 & 950/Chny/2025 :- 3 -: of the submissions of Ld.AR and in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the FAA. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 6. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 23rd July, 2025 at Chennai. Sd/- Sd/- (पɮमावती एस) (PADMAVATHY S) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 23rd July, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "