SHIVAGURUNATHAN AISHWARYA,CHENNAI V. DCIT, TDS CIRCLE-1, CHENNAI

ITA 1349/CHNY/2025

AI Insights

This case involves an appeal by Shivagurunathan Aishwarya against the order of the Learned Commissioner of Income Tax (Appeals), Mumbai, which upheld the order passed by the Deputy Commissioner of Income Tax, TDS Circle-1, Chennai. The original order determined the tax payable by the assessee due to various TDS discrepancies amounting to Rs.3,26,28,355 for the Assessment Year 2016-17. The assessee contested the TDS order under sections 201 and 201(1A) of the Income Tax Act, which was initially not addressed due to the absence of proper notice and opportunity to present evidence. The Tribunal found merit in the assessee's request for another opportunity to present his case and thus remanded the matter back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711430 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: S. GIRISH KUMAR
• Keywords: Set aside; Corroborative evidences; TDS

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1349/Chny/2025 िनधाᭅरण वषᭅ/Assessment Year: 2016-17 Shivagurunathan Aishwarya, No.1, Velavan Street, West Kamakodi Nagar, Chennai-600 028. v. The DCIT, TDS Circle-1, Chennai. [PAN: AOYPA 6962 M] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Appellant by : Mr.S. Girish Kumar, Advocate ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवाईकᳱतारीख/Date of Hearing : 15.07.2025 घोषणाकᳱतारीख /Date of Pronouncement : 21.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/Addl/JCIT(A)-1, (in short ‘the Ld.CIT(A)’), Mumbai, dated 13.03.2025 for the Assessment Year (in short ‘AY’) 2016-17. 2. The brief facts of the case are that the assessee is an individual and engaged in the business of production of feature films. A survey u/s. 133(2A) of the Act was conducted at the premises of the assessee on Printed from counselvise.com ITA No.1349/Chny/2025 (AY 2016-17) Shivagurunathan Aishwarya :: 2 :: 08.03.2018. In pursuance to the survey, the Deputy Commissioner of Income Tax, TDS Circle - 1, Chennai passed a common order u/s. 201/201(1A) of the Act in determining the tax payable at Rs.3,26,28,355/- comprising of the following: S.No. Particulars Amount (₹) 1 TDS Deducted but not remitted Rs. 2,16,22,300/- 2 TDS not deducted Rs. 22,00,460/- 3 Short deduction of TDS Rs. 4,50,000/- 4 Interest thereon Rs. 83,55,595/- Total Rs. 3,26,28,355/- 3. The Appellant in this appeal vehemently objects to the TDS order passed u/s 201/201(1A) of the Act by the Deputy Commissioner of Income Tax, TDS Circle-1, Chennai dated 26.03.2018 in view of the service of the order during the month of May, 2022 after initiation of the penalty proceedings u/s 271C of the Act vide notice dated 06.05.2022. However, before the ld.CIT(A), assessee did appear received any notice hence assessee was not able to produce evidence, hence the ld.CIT(A) proceeded on merits and dismissed the appeal and upheld the order of AO. Hence, assessee is further in appeal before us. 4. Before us also, the ld. Counsel submitted that while adjudicating the matter the ld. CIT(A) has not given proper notice of hearing to explain the grounds raised in appeal. He further pleaded that for one more opportunity to file the evidence before the CIT(A). The Ld. Addl. CIT-DR Printed from counselvise.com ITA No.1349/Chny/2025 (AY 2016-17) Shivagurunathan Aishwarya :: 3 :: pleaded for dismissal of the appeal on the ground that the assessee has neither prosecuted the appeal nor filed supporting evidences with regard to the TDS issue before the ld. CIT(A). 5. We have gone through the orders of lower authorities and submission addressed by the ld. Departmental Representative. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.CIT(A) to file all relevant evidences/documents to prosecute his case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.CIT(A) for de novo adjudication of appeal. The Ld.CIT(A) who shall proceed for de novo adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case/appeal forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appellate proceedings as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced on the 21st day of July, 2025, in Chennai. Printed from counselvise.com ITA No.1349/Chny/2025 (AY 2016-17) Shivagurunathan Aishwarya :: 4 :: Sd/- (जगदीश) (JAGADISH) लेखा सद᭭य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) ᭠याियक सद᭭य/JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated: 21st July, 2025. TLN, Sr.PS 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF Printed from counselvise.com "