SHREE RAASI ASSOCIATES,NAMAKKAL V. ITO, WARD-1, NAMAKKAL

ITA 1073/CHNY/2025

AI Insights

The case involves Shree Raasi Associates, a company engaged in real estate and construction, which appealed against the disallowance of a deduction claimed under section 40(b) of the Income Tax Act, amounting to Rs.1,20,000. The initial disallowance was made by the Centralized Processing Center (CPC), Bengaluru, and was upheld by the CIT(A) in an ex-parte order due to the assessee's failure to provide documentary evidence. The assessee sought another opportunity to substantiate their case, which was supported by the Tribunal. The Tribunal found that the CIT(A) had not adjudicated the issue on merits and thus remitted the matter back for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668607 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Keywords: Set aside
• Section: 40(b)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1073/Chny/2025 िनधा:रण वष: /Assessment Year: 2022-23 Shree Raasi Associates, 2-182, Vadakku Kadu Alampatty, Athanur PO, Rasipuram Taluk, Namakkal – 636 301. [PAN: AECFS 5598B] Vs. The Income Tax Officer, Ward-1, Namakkal. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri T.S. Lakshmi Venkataraman, FCA GHथ की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 27.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2022-23 arises out of the orders of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A), Panaji [hereinafter “CIT(A)”] dated 20.03.2025. 2. The assessee is engaged in the business of real estate and allied construction activities. The CPC, Bengaluru vide intimation u/s. ITA No.1073/Chny/2025 Shree Raasi Associates :- 2 -: 143(1) of the Act, disallowed a deduction claimed u/s. 40(b) amounting to Rs.1,20,000/-. Aggrieved by the disallowance, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) passed order ex-parte without adjudicating the issue on merits as the assessee failed to provide documentary evidence in support of his case. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) had passed order ex-parte without adjudicating the issue on merits therefore, one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A). 4. On the other hand, the Ld. Departmental Representative (DR), 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 the Ld. CIT(A), we find that the Ld. CIT(A) had decided the issue, without adjudicating the issue on merits. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the ITA No.1073/Chny/2025 Shree Raasi Associates :- 3 -: assessee, in accordance with law. We also direct the assessee to co- operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th June, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "