SUBBURAM ASHOK BALAJI,VIRUDHUNAGAR V. ITO, WARD-1, VIRUDHUNAGAR

ITA 849/CHNY/2025

AI Insights

The case involves an appeal by Subburam Ashok Balaji against the order of the Learned Commissioner of Income Tax (Appeals), Delhi, for the Assessment Year 2016-17. The primary contention was that the assessee was not given a proper hearing, violating the principles of natural justice. The assessee's representative argued that notices were not properly served, leading to the assessee's unawareness and inability to respond. Citing the Supreme Court's decision in TIN Box Co. v. CIT, the Tribunal found merit in the assessee's plea for a de novo assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653058 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Other Referred Cases: TIN Box Co. v. CIT
• Laws Referred To: TIN Box Co. v. CIT [2001] 249 ITR 216 (SC)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAM S.MUKUNDAN
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.849/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2016-17 Subburam Ashok Balaji, 283, Gandhi Nagar, Kanchanayakkan Patti, Aruppukottai, Virudhunagar-626 101. v. The ITO, Ward-1, Virudhunagar. [PAN: BHLPA 7471 E] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.D. Anand, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Gautham S. Mukundan, IRS सुनवाईक\u001aतारीख/Date of Hearing : 03.06.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 18.06.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as ‘Ld.CIT(A)‘), Delhi, dated 26.06.2024 for the Assessment Year (hereinafter referred to as ‘AY‘) 2016-17. ITA No.849/Chny/2025 (AY 2016-17) Subburam Ashok Balaji :: 2 :: 2. At the outset, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has passed the impugned order without hearing the assessee and therefore, there is a violation of natural justice and therefore, according to him, impugned order of the Ld.CIT(A) is erroneous. At the same time, it was also brought to our notice that the assessment order has also been passed ex parte order qua assessee. According to the Ld.AR, the assessee has filed an affidavit explaining the reasons why the assessee couldn’t appear before the AO/Ld.CIT(A). From the contents of which, it is understood that the notices alleged to have been issued to the assessee have not been served upon the assessee meaning, the notices got delivered into the ‘spam’ account of his e-mail account resulting in assessee not being aware of the existence of such notices, which prevented him from responding to the said notices. Therefore, he pleads that one more opportunity may be granted to the assessee before the AO by relying on the decision of Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC), wherein their Lordships held that if the assessee didn’t get proper opportunity before the AO, then assessment should be returned to the file of the AO for de novo assessment. In the light of the above discussion, we set aside the impugned order of the Ld.CIT(A) and restore the assessment back to the file of the AO with a direction to frame de novo assessment subject to the assessee remitting Rs.10,000/- as cost which ITA No.849/Chny/2025 (AY 2016-17) Subburam Ashok Balaji :: 3 :: the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of depositing of the same before the AO and then, the AO to frame the de novo assessment after hearing the assessee in accordance to law. 3. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 18th day of June, 2025, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 18th June, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF "