ZINNIA LIFE SCIENCES PRIVATE LIMITED,COIMBATORE V. DEPUTY COMMISSIONER OF INCOME TAX,CORP CIRCLE 1, COIMBATORE

ITA 1899/CHNY/2024

AI Insights

The case involves Zinnia Life Sciences Private Limited appealing against the order of the Commissioner of Income Tax (Appeals), which confirmed the addition of ₹80,52,718 to the assessee's income on account of sales promotion expenditure. The addition was initially made by the Assessing Officer due to the absence of supporting documents. The assessee had attempted to provide additional evidence during the appeal, which was not admitted by the CIT(A). The Tribunal found that the assessee was not given a proper opportunity to present its case at both the assessment and appellate stages, despite the submission of details online. Consequently, the Tribunal decided to remand the case back to the Assessing Officer, allowing the assessee another opportunity to present the necessary evidence.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107545 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 12-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 13-07-2024
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: H. YESWANTHKUMAR
• Keywords: Additional evidence; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.1899/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2018-19 Zinnia Life Sciences Private Limited, 239, Thiruvenkatasamy Road, Coimbatore 641 002, Tamil Nadu. [PAN: AAACZ7555L] Vs. The Deputy Commissioner of Income Tax, Corporate Circle - 1, Coimbatore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri H. Yeswanthkumar, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 12.11.2024 घोषणा की तारीख /Date of Pronouncement : 13.11.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 30.05.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2018-19. 2. The assessee raised sole issue of challenging the action of the ld. CIT(A) in confirming the addition made on account of sales promotion expenditure in the facts and circumstances of the case. I.T.A. No.1899/Chny/24 2 3. We note that the Assessing Officer added an amount of ₹.80,52,718/- to the total income of the assessee on account of sales promotion expenditure in the absence of any supporting documents. The ld. CIT(A) confirmed the same by recording his reasons from para 7.2.1 to 8.1 of the impugned order. On perusal of both the orders at para 6 and 8.2 respectively, it is noted that both the authorities below made the disallowance in the absence of any documentary evidence in support of the claim of the assessee. We note that the assessee filed evidence by way of additional evidences before the ld. CIT(A), but, however, the said additional evidences were not admitted for the reason as it is reflecting in para 7.1.4 of the impugned order. 4. Before us, the ld. AR Shri H. Yeswanthkumar, Advocate filed paper book containing 406 pages. On perusal of the same, we note that the Assessing Officer issued show-cause notice on 23.02.2021 requesting the assessee to file reply on or before 02.03.2021. The assessee sought adjournment by letter dated 27.02.2021 upto 05.03.2021 for filing reply to the show-cause notice. The Assessing Officer, however, adjourned the matter till 08.03.2021 and it is noted that the assessee filed details on 03.03.2021, which is reflected from page 5 & 6 of the paper book. But, however, though the Assessing I.T.A. No.1899/Chny/24 3 Officer passed the assessment order on 24.03.2021, but, not considered the details as submitted on 03.03.2021 by the assessee. As discussed above, the ld. CIT(A) did not entertain the additional evidences filed before the first appellate authority. The ld. AR pleaded for one more opportunity as the assessee is ready to prosecute its case by filing relevant evidences. 5. The ld. AR drew our attention to the paper book and submits that the evidences as reflecting from page 7 to 406 of the paper book are necessary for fair adjudication of the issue and requested to remand the matter to the file of the Assessing Officer. 6. The ld. DR Ms. R. Anita, Addl. CIT did not oppose the same. 7. Having heard both the parties and upon perusal of the assessment order and the impugned order, we note that there was no opportunity for the assessee to substantiate its case before the Assessing Officer as well as ld. CIT(A) despite uploading the details through online. Therefore, taking into consideration the material evidence as furnished in the form of paper book as well as in the interest of natural justice, we deem it proper to remand the matter to the file of the Assessing officer for fresh consideration. The assessee shall furnish complete details to I.T.A. No.1899/Chny/24 4 substantiate its case before the Assessing Officer. Thus, the ground raised by the assessee is allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 13th November, 2024 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 13.11.2024 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "