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Mahadevan Vs ITO (ITAT Chennai)
The case of Mahadevan Vs ITO (ITAT Chennai) pertains to an appeal against an order by the Commissioner of Income Tax (Appeals), National Faceless Appeal Center (NFAC), for the assessment year 2019-20. The appellant challenged the ex-parte order dated June 26, 2024, alleging that the NFAC failed to consider the written submissions provided during the proceedings. Specifically, the assessee contended that sufficient details had been submitted to substantiate the cash deposits made during the demonetization period as part of an organized business activity. However, the NFAC claimed that no such details were filed. The appellant highlighted an electronic acknowledgment, dated March 21, 2024, proving submission of these details, and requested the case be remanded for fresh consideration.
After reviewing the submissions and available evidence, the ITAT noted that the NFAC had overlooked the material provided by the assessee. Consequently, the ITAT set aside the NFAC’s order and directed a de novo adjudication of the appeal. The appellate authority was instructed to thoroughly examine the details and issue a speaking order after providing the assessee with a fair opportunity to present their case. The responsibility for compliance with future notices was placed on the assessee, with a warning of adverse consequences for non-compliance. The appeal was allowed for statistical purposes, emphasizing procedural fairness in tax proceedings.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal is filed against the order bearing DIN & Order No. ITBA/NFAC/S/250/2024-25/1066087441(1) dated 26.06.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 201920. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 26.06.2024 passed by NFAC, Delhi.
2.0 At the outset, the Ld. Council for the assesse invited our attention to the exparte order dated 26 June 2024 of the learned first appellate Authority. It was contended that the order has been passed without appreciating and considering the written submissions filed by the assessee. The learned council informed that the learned CIT appeal has given a finding that the assessee did not submit any details during the course of proceedings. In this regard, the Ld. Council invited our attention to a communication bearing acknowledgement number 149120630210324 dated 21 March 2024, which is in the nature of an Electronic acknowledgement of the details filed by the assesse before the Ld. CIT(A). It is seen from perusal thereof that the assesse has provided various details in support of its contentions. The assesse has filed the details in support of its arguments of doing an organized business activity and thus linking the alleged cash deposits in his bank account made during the demonetization period with the said activity. The assesse accordingly requested that the matter may kindly be considered for restoration back to the Ld. CIT appeal for readjudication of the appeal in the light of details filed by him vide its communication dated 21 March 2024 supra. The Ld. DR would like to make us believe on the correctness of the order of lower authorities.
3.0 We have considered rival submissions in the light of material available on records. We have noted the impugned communication dated 21 March 2024, which is in the nature of an electronic receipt of details filed before the Ld.CIT appeal. Thus, a case has been made out by the assesse of non-consideration of the details filed by it. Accordingly, we set aside the order of the Ld. First Appellate Authority, and direct him to readjudicate the matter de novo after considering details filed by the assessee in accordance with law and by passing of a speaking order due opportunity of being heard shall be given to assessee. The assessee shall be responsible to comply with all the notices issued by Ld. Frist Appellate Authority. Any non-compliance on the part of the assessee shall be adversely viewed. Accordingly, all the grounds of appeal raised by the assessee are allowed for statistical purposes.
4.0 In the result the appeal filed by the assesse is allowed for statistical purposes.
Order pronounced on 4th , December-2024 at Chennai.
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