THANGARAJ NAVANEETHAKRISHNAN,MADURAI V. ITO, NCW-2(5), MADURAI

ITA 13/CHNY/2025

AI Insights

The case involves an appeal by Thangaraj Navaneethakrishnan against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2014-15. The primary contention was the insufficient opportunity provided by the Assessing Officer (AO) for the assessee to defend himself, as only 10 days were allotted for compliance, which the assessee could not meet. The Tribunal noted the procedural lapses and emphasized the need for a fair hearing as a fundamental right under the principles of natural justice. Consequently, the Tribunal remitted the case back to the AO for a fresh assessment, instructing adherence to due process and adequate opportunity for the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312860 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMANTHA MULLAMUDI
• Assessee Lawyers: C. KARTHICK
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Principle of natural justice
• Section: 147; 142(1)

Judgement Text

"आयकर अपीलीय अधिकरण, ‘ए’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.13/Chny/2025 Assessment Years: 2014-15 Thangaraj Navaneethakrishnan, No.48, Collectorate Road, Anna Bus Stand, Madurai, Tamil Nadu-625 020. [PAN: AKGPN2470H] Income Tax Officer, Non-Corp Ward-2(5), Madurai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri C.Karthick, Advocate प्रत्यर्थी की ओर से /Revenue by : Smt.Samantha Mullamudi, Addl.CIT सुनवाई की तारीख/Date of Hearing : 24.03.2025 घोषणा की तारीख /Date of Pronouncement : 30.04.2025 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 / 1070388371(1) dated 15.11.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2014-15. 2.0 At the outset, the Ld. Counsel for the assessee submitted that It has not been accorded sufficient opportunity by the Ld. AO to submit its defence. It was stated that the Ld. AO gave mere 10 days of time ITA No.13/Chny/2024 Page - 2 - of 4 and proceeded to complete the assessment holding non-compliance from assessee’s side. It was accordingly pleaded that the matter may kindly be considered for being remitted back to the Ld.AO. 3.0 The Ld. DR relied upon the order of lower authorities. 4.0 We have heard rival submissions in the light of material available on records. It has been noted that in this case notice u/s 147 was issued to the assessee engaged in the business of Hotel, to examine the transactions concerning purchase of immovable property. On page 2 of the assessment order the Ld.AO has stated that the assessee had filed its return of income on 04.12.2019 and that the Ld.AO issued notice u/s 143(2) and 142(1) on 11.12.2019. It has been recorded that as there was no response, another show cause notice was issued on 17.12.2019. The Ld. AO proceeded to conclude the assessment vide his order dated 21.12.2019. The non-compliance of the assessee is evident however, it is also seen that the Ld.AO deprived the assessee with a reasonable time to file its responses. Principles of natural justice postulate that reasonable opportunity of being heard is sina qua non for any judicial proceedings. The same has been violated. Be that as it may be, we are of the view that the assessee has not been afforded adequate opportunities of being heard. We are of the view that ends of justice ITA No.13/Chny/2024 Page - 3 - of 4 would be met if the assessee is given one last opportunity to present its case and file supporting evidences before the Ld.AO. Accordingly, the order of lower authorities is set aside and the Ld. AO is directed to re- adjudicate the matter de novo after giving due opportunity of being heard and by passing a speaking order. The decision to remit it back to the Ld. AO is taken in view of the fact that an Assessing Officer is the fulcrum of assessment proceedings. He possess the first right and responsibilities to examine facts of a case before arriving at his decision qua determination of taxable income in a particular case. We have noted with respectful deference the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216 on the subject matter. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non- compliance on the part of the assesse can be adversely viewed. The assessee is at liberty to produce all or any other evidences deemed relevant in support of its claims before the Ld. AO during the re- adjudication proceedings. Accordingly, all the grounds of appeal raised by the assessee are therefore allowed for statistical purposes. ITA No.13/Chny/2024 Page - 4 - of 4 4.0. In the result, the appeals of the assesse is allowed for statistical purposes. Order pronounced on 30th , April-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 30th , April-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Madurai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "