SHRIRAM PROPERTIES (COIMBATORE) PVT. LTD.,BANGALORE V. ITO, CORPORATE WARD-1, COIMBATORE

ITA 964/CHNY/2025

AI Insights

The case involves Shriram Properties (Coimbatore) Private Limited, which appealed against the order of the Ld.CIT(A), NFAC, Delhi, dated 13.12.2013 for the assessment year 2015-16. The appeal was initially delayed by 398 days, which the Tribunal condoned after finding sufficient cause. The assessee had declared significant losses in its return, which were adjusted by the Assessing Officer, leading to a reduced loss figure. The primary contention in the appeal was the disallowance of business expenditure and an addition under section 14A of the Income Tax Act. The CIT(A) had affirmed the AO's order ex-parte, prompting the assessee to seek relief from the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712870 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: ANANTHAN; C.A; R. LALITHA; C.A
• Keywords: Set aside; Opportunity of being heard; Business expenditure
• Section: 14A; 115JB

Judgement Text

"आयकर अपीलीय अधिकरण, ’सी’’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI माननीय श्री मनु क ुमार गिरि, न्यागयक सदस्य एवं माननीय श्री एस.आर.रघुनाथा ,लेखा सदस्य क े समक्ष । BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.964/Chny/2025 ननिाारण वर्ा/Assessment Year: 2015-16 Shriram Properties (Coimbatore) Private Limited, No.31, 2nd Main Road, T Chowdaiah Road, Sadashivanagar, Bangalore, Karnataka-560080. v. Income Tax Officer, Corporate Ward-1, Coimbatore. [PAN: AAKCS3522N] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Mr.Ananthan, C.A & Smt.R.Lalitha, C.A, प्रत्यर्थी की ओर से /Respondent by : Mr.Bipin C.N, CIT सुनवाईकीतारीख/Date of Hearing : 30.07.2025 घोर्णाकीतारीख /Date of Pronouncement : 31.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal is preferred by the assessee against the order of the Ld.CIT(A), NFAC, Delhi dated 13.12.2013 for AY 2015-16. 2. At the outset, the registry has noted that the appeal has been filed after a delay of 398 days and the assessee has filed explaining the delay. Having gone through the contents of the affidavit, we are satisfied that there is sufficient cause for delay in filing the appeal. Therefore, we Printed from counselvise.com ITA No.964/Chny/2025 (AY 2015-16) Shriram Properties (Coimbatore) Private Limited :: 2 :: condone the delay of 398 days and proceed to adjudicate the appeal of the assessee. 3. The assessee is a private limited company engaged in the business of property development. It filed its return of income for the assessment year (In short ‘AY’) 2015-16 on 30.09.2015 declaring a loss of Rs 5,02,18,203/- under the normal provisions of the Income Tax Act, 1961 and a loss of Rs.5,06,28,893/- under 115JB of the Income Tax Act, 1961 (In short ‘Act’). Tax payable thereon was computed at Rs. Nil. In the assessment made under section 143(3), the Assessing Officer (‘AO’ in short), made additions and disallowances and reduced the Loss to Rs.26,10,051/-. In the assessment, the ld. AO made the following additions while arriving at the taxable income under the regular computation which are being contested by the appellant: Sl. No. Particulars Amount in Rs. 1. Disallowance of Business Expenditure 4,75,36,943 2. Disallowance u/s 14A 70,759 Being aggrieved by the assessment order passed under section 143(3), the appellant preferred an appeal before the ld.CIT(A). 4. In appellate proceedings, the ld.CIT(A) has given hearing notices dated 24.12.2020, 26.08.2022, 25.11.2022, 20.01.2023 and 28.04.2023 asking it to furnish the written submissions in support of its grounds of appeal and statement of facts, on or before 08.01.2021, 05.09.2022, 02.12.2022, 27.01.2023 and 15.05.2023. In response to the notices the appellant has Printed from counselvise.com ITA No.964/Chny/2025 (AY 2015-16) Shriram Properties (Coimbatore) Private Limited :: 3 :: replied on 28.12.2020, 03.09.2022, 27.01.2023 and 15.05.2023. However, the ld.CIT(A) has affirmed the order of the AO ex-parte. Now the assessee is in appeal before us. 5. Ld.AR of the asssessee submitted that the assessee has not received hearing notice issued by the Ld.CIT(A) although the assessee had earlier sought adjournments. He further prayed that one more opportunity of being heard be given to the assessee to substantiate its case before the Ld.CIT(A). 6. Per contra, the Ld. Departmental Representive, Mr.Bipin C.N, CIT relied on the orders of the Ld.CIT(A) and pleaded for the dismissal of the assessee’s appeal. 7. We have heard the rival submissions and perused the records. We find that there was no appearance by the assessee’s representative before the Ld.CIT(A) despite notices issued. Further, in the interest of justice, we deem it fit to set aside this appeal to the file of the Ld.CIT(A) for de novo adjudication of the appeal after providing an opportunity of being heard to the assessee. The assessee is directed to substantiate its case forthwith without fail, failing which the Ld.CIT(A) at liberty to proceed with the appellate proceedings as per law. The Ld.Counsel has also pointed out the new email address of assessee as: [e-mail] and Mobile No.9632967722 as per Form-36. The Ld.AR also assured this bench that in case the appeal is set aside, the assessee will prosecute its case before the CIT(A). Printed from counselvise.com ITA No.964/Chny/2025 (AY 2015-16) Shriram Properties (Coimbatore) Private Limited :: 4 :: 8. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced on the 31st day of July, 2025, in Chennai. Sd/- (एस.आर.रघुनाथा) (S. R. RAGHUNATHA) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (मनु क ुमाि गिरि) (MANU KUMAR GIRI) न्यानयक सदस्य/JUDICIAL MEMBER चेन्नई/Chennai, ददनांक/Dated: 31st July, 2025. KB/- 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT, Chennai / Madurai / Salem / Coimbatore. 4. विभागीयप्रविविवि/DR 5. गार्डफाईल/GF Printed from counselvise.com "