VEL MURUGAN TIMBER TRADERS,CHENNAI V. DCIT, NCC-10(1), CHENNAI

ITA 2276/CHNY/2024

AI Insights

The case involves Vel Murugan Timber Traders, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, which confirmed an addition of Rs.34,78,262 to the assessee's income for the assessment year 2018-19. The addition was initially made by the Assessing Officer under section 143(3) of the Income Tax Act, due to non-acceptance of the business results reported by the assessee. The First Appellate Authority dismissed the appeal ex-parte due to non-appearance of the assessee, who later claimed that the previous chartered accountant failed to respond to notices. The Tribunal found merit in the assessee's plea for a fair hearing and restored the case to the Assessing Officer for a fresh assessment, emphasizing the need for a reasonable opportunity to be heard.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298669 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 28-08-2024
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHINTHAPALLI MEHER CHAND
• Assessee Lawyers: BALASUBRAMANIAN
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.2276 /Chny/2024 निर्ाारण वर्ा /Assessment Years: 2018-19 Vel Murugan Timber Traders, No.16-1B, Red Hills Road, Kathirvedu, Chennai-600099. [PAN: AACFV8475C] Deputy Commissioner of Income Tax, Non-Corp Circle-10(1) Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Shri Balasubramanian, Advocate प्रत्यर्थी की ओर से /Respondent by : Mr.Chinthapalli Meher Chand, JCIT सुिवाई की तारीख/Date of Hearing : 22.10.2024 घोर्णा की तारीख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1067043180(1) dated 26.07.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2018- 19. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 26.07.2024 passed by NFAC, Delhi. ITA No.2276 /Chny/2024 :- 2 -: 2.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 143(3) dated 13.04.2021 and that the appeal was dismissed on account of non-appearance. The assesse a trader of woods for which it imports and makes purchase of coal. The AO made an addition of Rs.34,78,262/- by not accepting its business results. Before the Ld. First Appellate Authority the assesse filed appeal with statement of facts and accompanying documents. The Ld. CIT(A) however chose to dismiss the appeal on the premise on non-appearance. The Ld. Counsel for the assesse pleaded that the assesse has been denied reasonable opportunity of being heard. It was submitted that the email id of the earlier chartered account of the assesse had been given and that the said chartered account did not respond to the impugned notices. The assesse confirmed that it has now given a new email Id. It was accordingly prayed that matter may be considered for restoration to Ld. CIT(A) for fresh adjudication. The Ld. Counsel for the assesse assured that full compliance would made now. The Ld. DR proposed that cost may be levied upon the assesse. ITA No.2276 /Chny/2024 :- 3 -: 3.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non- prosecution of its case. We find sufficient force in the pleadings of the assesse, as to why it could not prosecute its case. We have also noted that apart from merely harping on the issue of non-appearance by the assesse the Ld. CIT(A) has not touched upon merits of the case. We have also noted that the assesse has submitted that the Ld. AO in para- 5.3 and 5.4 of his order also indicated that complete details were not forthcoming from the assesse. As a result of which he had estimated the business profits over impugned additions. 4.0 We are therefore of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and file supporting evidences. Accordingly, we set aside the order of authorities below. We have also noted that the Ld. AO in para-5.3 to 5.6 of his order has alluded towards non-submission of details by the assesse leading to his drawing of conclusions. The assessing officer is the primary authority to determine taxable income of a tax payer by collecting and colleting evidences. Accordingly, placing reliance upon the decision in the case of TIN box 249 ITR 216 the matter is restored to the file of the AO for ITA No.2276 /Chny/2024 :- 4 -: assessment de novo. He is directed to give due opportunities of being heard to the assesse. The assesse is directed to make complete and correct compliance towards the notices issued by the AO. Any non- compliance from the assesse side shall be adversely viewed. 5.0 In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 8th , November-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 8th , November-2024. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "