Madras High Court
Shri Vimlesh Lumar Daga vs The Income Tax Officer on 5 January, 2021
TCA.No.491 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.01.2021
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
and
THE HONOURABLE MS.JUSTICE R.N.MANJULA
Tax Case Appeal No.491 of 2020
Shri Vimlesh Lumar Daga,
82, Audiappan Naicken Street,
Sowcarpet,
Chennai – 600 079
PAN: ABTPV5851A ...Appellant
Vs
The Income Tax Officer,
Non Corporate Ward – 6(4),
Chennai – 600 006. ...Respondent
APPEAL under Section 260A of the Income Tax Act, 1961 against
the order dated 29.04.2019 passed by the Income Tax Appellate Tribunal, 'A'
Bench, Chennai in I.T.A.No.207/Chny/2019 for the assessment year 2011-
12.
For Appellant : Mr.A.S.Sriraman
For Respondent : Mr.T.Ravikumar
Senior Standing Counsel
1/8
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
JUDGMENT
(Delivered by T.S.SIVAGNANAM,J)
This appeal, filed by the assessee under Section 260A of the
Income Tax Act, 1961 (for short, the Act), is directed against the order dated
29.04.2019 made in I.T.A.No.207/Chny/2019 on the file of the Income Tax
Appellate Tribunal, 'A' Bench, Chennai ('the Tribunal' for brevity) for the
assessment year 2011-12.
2. The appellant/assessee has filed this appeal by raising the
following substantial questions of law:
“1. Whether the Appellate Tribunal is
correct in passing the exparte order by not
granting adequate opportunity of hearing
especially in the context of the legal requirement
for the adherence to the principles of natural
justice?
2. Whether the dismissal of the appeal
on the technical ground of the presumed defect in
the appeal is legally sustainable on the
consideration of the limited powers vested with
the Appellate Tribunal in dealing with the
defective appeals and further on the consideration
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
of the gross violation of the principles of natural
justice?
3. Whether the Appellate Tribunal is
correct in not considering the grounds
challenging the validity of the reopening of the
proceedings u/s 147 of the Act even though the
borrowed satisfaction should not be reckoned as
valid information for the purpose of assuming
such jurisdiction for completing the re-
assessment?”
3. We have heard Mr.A.S.Sriraman, learned counsel appearing for
the appellant/assessee and Mr.T.Ravikumar, learned Senior Standing
Counsel appearing for the respondent – Revenue.
4. The Tribunal, by the impugned order, has dismissed the appeal
filed by the assessee on the ground that the appeal was defective. Identical
issue was considered by us in the case of M.Mukesh Kumar vs Income Tax
Officer in T.C.A.No.2 of 2021 dated 04.01.2021. The operative portion of
the judgment reads as follows:
“4. It may not be necessary for us to go into the
factual matrix, as the appeal filed by the assessee
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
before the Tribunal was dismissed on the ground
that the appeal was defective. From the defect
memo, which was notified to the assessee, we find
that the initial of the assessee was shown as 'I'
instead of 'M' and owing to such a reason, the
appeal was dismissed as defective by the
impugned order. In fact, hearing of the appeal
took place on 27.3.2019 and none appeared for
the assessee. It is relevant to note that in the
impugned order passed by the Tribunal, the initial
of the assessee has been correctly shown as 'M'.
Thus, the Tribunal itself rectified the mistake.
5. In any event, the mistake, being an insignificant
or inadvertent error, ought to have been permitted
to be rectified instead of dismissing the appeal on
the ground that it was defective despite Rule 12 of
the Income Tax (Appellate Tribunal) Rules, 1963
provides for such a procedure to be adhered to.
Further, we are informed that the defect memo
issued by the Registry of the Tribunal along with
hearing notice and the papers were not returned
earlier to the assessee or to their authorized
representative.
6. It is high time that the Tribunal evolves a
procedure, by which, the defective papers are
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
returned to the assessee or the Revenue and
reasonable time can be granted for rectifying the
defects. In fact, such a procedure is being followed
in this Court, as a result of which, many of the
minor defects were rectified and cases are
numbered. Thus, considering the fact that the
appeal was dismissed on a technical ground,
which, in our opinion, appears to be on a hyper
technical ground, we are inclined to interfere with
the impugned order.
7. Accordingly, the above tax case appeal filed by
the assessee is allowed, the impugned order is set
aside and the appeal is restored to the file of the
Tribunal to be heard and decided on merits and in
accordance with law. We direct that the name of
the assessee shall be mentioned as 'M.Mukesh
Kumar' in all the appeal papers and the
assessee/his authorized representative shall be
permitted by the Registry of the Tribunal to carry
out the corrections and if necessary, clean copies
of the appeal papers shall be made available. The
substantial questions of law raised are left open.
No costs.”
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
5. We find that the above decision is squarely applicable to the
case on hand and there are no distinguishable features warranting a different
view to be taken in the present matter. Therefore, we are inclined to allow
the appeal and set aside the order of the Tribunal.
6. In the result, the Tax Case Appeal is allowed. The impugned
order is set aside and the appeal is restored to the file of the Tribunal to be
heard and decided on merits in accordance with law. Consequently, the
substantial questions of law raised are left open. No costs.
T.S.S.,J.) (R.N.M.,J.)
05.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
hvk
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
To
1. The Income Tax Appellate Tribunal, 'A' Bench,
Chennai.
2. The Income Tax Officer,
Non Corporate Ward – 6(4),
Chennai – 600 006.
https://www.mhc.tn.gov.in/judis/
TCA.No.491 of 2020
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
TCA.No.491 of 2020
05.01.2021
https://www.mhc.tn.gov.in/judis/
