VGN PROJECTS ESTATES PRIVATE LIMITED,CHENNAI V. THE DEPUTY COMMISSIONER OF INCOME TAX OFFICER, TDS CIRCLE - 3, CHENNAI, CHENNAI

ITA 3777/CHNY/2025

AI Insights

The case involves VGN Projects Estates Pvt. Ltd., the appellant, contesting orders from the Commissioner of Income Tax (Appeals), Pune, for the assessment years 2020-21 and 2021-22. The appeals were initially delayed but were admitted after the assessee provided a condonation petition. The primary contention was the ex-parte nature of the FAA's decision due to the assessee's non-compliance with multiple notices. The Tribunal acknowledged the additional evidence presented, which was crucial for a fair adjudication, and decided to remand the case back to the AO with specific instructions and a financial penalty to ensure compliance and expedite the process.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826510 (ITAT-CHENNAI)
• Duration Of Justice: 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 10-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: I. DINESH
• Keywords: Additional evidence; Principle of natural justice; TDS

Judgement Text

" आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.: 3777 & 3778/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Years: 2020-21 & 2021-22 VGN Projects Estates Pvt. Ltd., 43/14, 3rd Floor, Hameediacentre, Haddows Road, Nungambakkam, Chennai – 600 034. PAN: CHEVO 9067C Vs. The Deputy Commissioner of Income Tax, TDS Circle-3, Chennai (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri I. Dinesh, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gouthami Manivasagam, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 05.01.2026 घोषणा कᳱ तारीख/Date of Pronouncement : 05.01.2026 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by the assessee are directed against two orders of Commissioner of Income Tax (Appeal), Addl/JCIT(A)-2, Pune both dated 02.09.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2020-21 & 2021-22. Printed from counselvise.com ITA No.3777 & 3778/Chny/2025 :- 2 -: 2. There is a delay of 10 days in filing these appeals. The assessee has filed condonation petition along with affidavit stating therein the reasons for belated filing of these appeals. On perusal of the same, we find there is sufficient reason for delay in filing these appeals before the Tribunal. Hence, we condone the delay in filing the appeals and proceed to dispose off the appeals on merits. 3. At the very outset, we notice that the orders passed by the First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to four notices issued from the office of the First Appellate Authority. 4. The Ld.AR for the assessee submitted that the order passed by the FAA is ex-parte since the assessee has failed to take note of the hearing notices issued from the office of the FAA. The Ld.AR further submitted that the assessee could not file complete details before the AO during the assessment proceedings. The Ld.AR for the assessee submitted that the assessee has filed all evidences before the Tribunal along with the petition for admission of additional evidence under Rule 29 of the Income Tax Appellate Rules, 1963. The Ld.AR submitted that additional evidences now filed before the Tribunal is essential to prove that the demand Printed from counselvise.com ITA No.3777 & 3778/Chny/2025 :- 3 -: raised in the order passed u/s.201 / 201(1A) of the Act is wholly unjustified and erroneous and prayed that the documents now produced as additional evidence may be taken on record for substantial cause and justice. 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 6. We have heard rival submissions and perused the material on record. The assessee before the Tribunal has furnished additional evidences, which goes to the root of the matter and are essential for adjudication of the issue raised. Hence, for substantial justice and equity, the additional evidences now produced before the Tribunal are taken on record. The assessee has not given effective representation before the FAA. We strongly deprecate the nonchalant attitude of the assessee in not appearing or giving effective representation before the FAA. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.15,000/- each to be paid to Tamil Nadu State Legal Services Printed from counselvise.com ITA No.3777 & 3778/Chny/2025 :- 4 -: Authority at the Hon’ble High Court of Madras. The amount of Rs.30,000/- (Rupees Thirty Thousand only) shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 7. In the result, the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 5th January, 2026 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 5th January, 2026 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "