VARADHA STEELS,CHENNAI V. ITO, NCW-10(3), CHENNAI

ITA 2650/CHNY/2024

AI Insights

The case involves Varadha Steels, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The original assessment for the year 2015-16 was made under sections 147 read with section 144 of the Income Tax Act, 1961 by the Income Tax Officer, Non Corporate Ward 10(3), Chennai. The appellant contended that they had not received notices from the Assessing Officer or the CIT(A), which led to their inability to present evidence and documents to substantiate their case. The Departmental Representative argued that the appellant was a habitual defaulter in appearing before the appellate authority. The Tribunal, emphasizing the principles of natural justice, decided to grant another opportunity for a hearing, subject to the payment of costs by the appellant.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29324 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.KAVITHA
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Set aside; Principle of natural justice
• Section: 144

Judgement Text

" आयकर अपीलीय अिधकरण ‘बी’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2650/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2015-2016) Varadha Steels, 15/11, Big Street, Police Colony, Kilpauk Garden Colony, Chennai 600 010. [PAN: AAEFV 6129M] Vs. The Income Tax Officer, Non Corporate Ward 10(3) Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. M. Karunakaran, Advocate Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. R. Kavitha, Addl. CIT. सुनवाई कȧ तारȣख/Date of Hearing : 18.12.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 09.01.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2023-24/1060210295(1) dated 29.01.2024. The assessment was framed by the Income Tax Officer, Non Corporate Ward 10(3), Chennai for the assessment year 2015-16 u/s.147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 11.03.2023. 2. Before us, the ld. Counsel for assessee submitted that the assessee has inadvertently not received the notices issued by the AO and the ld.CIT(A) hence, asessee failed to avail opportunity to file evidence and documents to substantiate its 2 ITA No.2650 /Chny/2024 case. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in this case and prayed for dismissal of appeal. 3. Though we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment subject to cost of Rs.10,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessment after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law. 4. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 9th day of January, 2025 Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 09-01-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "