SHAHMUGAM SAKTHIVEL,TIRUPUR V. ACOT, CENTRAL CIRCLE-3(1), CHENNAI

ITA 3071/CHNY/2024

AI Insights

This case involves an appeal by Shanmugam Sakthivel against an order from the Principal Commissioner of Income Tax (PCIT), Chennai, which was passed ex-parte. The appeal was initially delayed by 824 days due to the assessee's unfamiliarity with electronic procedures and lack of awareness of the order until recovery proceedings were initiated. The Tribunal found the reasons for the delay satisfactory and condoned it, proceeding to hear the appeal. The main issue was the addition of Rs. 26,25,150 under section 69A of the Income Tax Act, which led to penalty proceedings under section 271AAC. The Tribunal noted the assessee's previous non-compliance but decided to set aside the case for a fresh examination, emphasizing the need for a fair hearing and a reasoned order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 302966 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. RAGHUPATHY
• Assessee Lawyers: ANANDD BABUNATH
• Keywords: Set aside; Recovery proceedings

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण, ‘‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 3071/Chny/2024 निर्ाारण वर्ा /Assessment Years: 2021-22 Shanmugam Sakthivel, No.1/232, Kumaran Colony, Anna Nagar, Thirumurugan Poondi Post, Tirupur, Tamil Nadu- 641 652 [PAN: FWSPS0073N] The Asst. Commissioner of Income Tax, Central Circle-3(1), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr. Anandd Babunath, CA प्रत्यर्थी की ओर से /Revenue by : Mr.R.Raghupathy, Addl. CIT सुिवाई की तारीख/Date of Hearing : 18.02.2025 घोर्णा की तारीख /Date of Pronouncement : 23.04.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No. ITBA/REV/F/REV5/2023-24/1061222170(1) dated 20.02.2024, for the assessment years 2021-22 of PCIT, Chennai. 2.0 It has been noted that there is a delay of 824 days in the case, in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that the assesse is not conversant with electronic working of the tax authorities. It was also submitted that the assessee came to know of ITA No.3071 /Chny/2024 Page - 2 - of 4 the order only upon initiation of recovery proceedings. All these activities contributed to the delay which was neither willful nor wanton. The assesse submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay. The Ld. DR however argued that cost be imposed upon the assessee for wasting the precious time of the judicial authorities. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 At the outset the Ld. Counsel for the assesse informed that the Ld. PCIT, Chennai has passed an ex-parte order thereby directing the Ld. AO to revise and modify the assessment order dated 17.03.2022 so as to ensure that penalty proceedings u/s 271AAC was initiated qua addition of Rs.26,25,150/- made u/s 69A. It was pleaded that admittedly the compliance of the assessee before the lower authorities i.e Ld. PCIT, Chennai was inadequate. The Ld. Counsel for the assesse pleaded for setting aside the case to Ld. PCIT, Chennai and assured that full compliance would now be made to the statutory notices of the Ld. PCIT. ITA No.3071 /Chny/2024 Page - 3 - of 4 4.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non- prosecution of its case. We find sufficient force in the pleadings of the assesse as to why it could not prosecute its appeal before Ld. PCIT, Chennai We have also noted that apart from merely harping on the issue of non-compliance by the assesse the Ld. PCIT, Chennai, has not touched upon merits of the case. 5.0 We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. PCIT, Chennai for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. The assesse shall be bound to comply to all the notices and details called by the Ld. PCIT, Chennai Any non-compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. PCIT, Chennai and direct him to readjudicate the matter de novo. We have also found sufficient force in the argument of the Ld. DR regarding wastage of time of judicial authorities by the non- compliance of the assessee. Consequently, this order is subject to payment of Rs.5000/- by the assessee to the Tamil Nadu Legal Services Authority of Hon’ble Madras High Court within 30 days of receipt of this order. Accordingly, the grounds of appeal raised by the assesse are allowed for statistical purposes. ITA No.3071 /Chny/2024 Page - 4 - of 4 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 23rd , April-2025 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 23rd , April-2025. KB/- आदेश की प्रनतनलनप अग्रेनर्त/Copy to: 1. अपीलार्थी/Assessee: 2. प्रत्यर्थी/Revenue 3. आयकर आयुक्त/CIT - Chennai 4. नवभागीय प्रनतनिनर्/DR 5. गार्ा फाईल/GF "