SRI BALAJI TYRES,KANGAYAM V. ITO WARD 1(4), TIRUPPUR

ITA 2969/CHNY/2024

AI Insights

This case involves an appeal by Sri Balaji Tyres against an order from the CIT(A), NFAC, Delhi, concerning the assessment year 2017-18. The primary contention was the dismissal of the assessee's appeal by the CIT(A) on grounds of non-compliance, without addressing the merits of the case. The assessee had challenged an addition of Rs. 8,46,065 made by the Assessing Officer (AO), which was related to unexplained cash deposits during the demonetization period. The Tribunal found that the CIT(A) had not adequately considered the merits of the case and thus remanded the matter back for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470332 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: SHARREN
• Keywords: Set aside; Opportunity of being heard
• Section: 147; 250

Judgement Text

"Page - 1 - of 4 आयकर अपीलीय अधिकरण,’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2969/Chny/2024 निर्ाारण वर्ा /Assessment Years: 2017-18 Sri Balaji Tyres, No.245, Coimbatore Road, Kangayam, Tamil Nadu-638 701. [PAN: ABAFS1418D] Income Tax Officer, Ward-1(4), Tiruppur. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Ms.Sharren, Advocate. प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुिवाई की तारीख/Date of Hearing : 22.01.2025 घोर्णा की तारीख /Date of Pronouncement : 07.02.2025 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/NFAC/S/250/2024-25/1069156812(1) dated 27.09.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017-18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 27.09.2024 passed by NFAC, Delhi. ITA No.2969/Chny/2024 Page - 2 - of 4 2.0 At the outset, the Ld. Counsel for assessee informed that the Ld.CIT(A) has passed an ex-parte order dismissing assessee’s appeal without giving him adequate opportunity of being heard. The Ld. Counsel informed that request for adjournment was made to file detailed evidences and submissions to contest the addition of Rs. 8,46,065/- made by the Ld. AO. A request was accordingly made to set aside the case to the Ld. CIT(A) for re-adjudication of this appeal after giving an opportunity of being heard. The Ld. Counsel for the assessee assure that full compliance will be made to the notices issued by the Ld.CIT(A). The Ld. DR contended that in this case order u/s 147 r.w.s 144B dated 25.09.2021 was passed. The reopening was done to examine cash deposits made by the assessee in his bank accounts during the demonetization period. The Ld. DR submitted that the explanation given by the assessee qua cash deposits was found to be unsatisfactory as a result of which the impugned addition was made. The order of the Ld.CIT(A) confirming the action of the Ld. AO was also stated to be on correct foundation. 3.0 We heard the rival submissions in the light of material available on records. We have noted that the Ld.CIT(A) and indeed given several opportunities to the assessee which remained un-complied. We have however also noted that the Ld.CIT(A) has merely dismissed the appeal ITA No.2969/Chny/2024 Page - 3 - of 4 on account of non-compliance by the assessee without giving any finding on the merits of the addition made by the Ld.AO. A decision on merits even an ex-parte order was passed is sina qua non for an appellant authority like a CIT(A). Be that as it may be we are of the view that ends of justice would met if one last opportunity is given to the assessee to defend its case. Accordingly, the order of the Ld.CIT(A) is set aside and he is directed to readjudicate the appeal afresh after giving due opportunity of being heard and by passing a speaking order. The assessee shall make due compliance to the statutory notices and any non-compliance will be adversely viewed. It has been noted that the assessee has raised legal grounds challenging the jurisdiction of the Ld. AO u/s 147. As evident from para 2 on page 2 of the order of the Ld.CIT(A), the impugned ground was not raised before the Ld.CIT(A). While readjudicating the impugned appeal, he may consider adjudicating the issue if raised by the assessee before him. Further, the Ld.CIT(A) would be at liberty to call for any remand report from the Ld. AO if deemed necessary. Accordingly all the grounds of appeal raised by the assessee are allowed for statistical purposes. ITA No.2969/Chny/2024 Page - 4 - of 4 4.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 7th , February-2025 at Chennai. Sd/- (यस यस नवश्विेत्र रनव) (SS VISWANETHRA RAVI) न्यानयक सदस्य / Judicial Member Sd/- (श्री अनमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 7th , February-2025 . KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT – Coimbatore. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "