ABDUL MAJEED SALIM,CHENNAI V. ITO, CHENNAI

ITA 1870/CHNY/2025

AI Insights

The case involves Abdul Majeed Salim, the appellant, who contested the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, which had dismissed his appeal due to non-prosecution. The original assessment by the Assessing Officer (AO) included substantial additions to the assessee's income, treating unsecured loans and cash deposits as unexplained credits under section 68 of the Income Tax Act. The CIT(A) dismissed the appeal on procedural grounds, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal, considering the principles of natural justice, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing, allowing the assessee to substantiate his claims with appropriate evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772752 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN
• Assessee Lawyers: JESINTHA
• Keywords: Set aside; Unexplained cash credit; Principle of natural justice
• Section: 68

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1870/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2018-19 Abdul Majeed Salim, No.22A, KK Salai, Kaveri Rangan Nagar, Saligramam, Chennai-600 093. v. The DCIT, Non Corporate Circle-8(1), Chennai. [PAN: AASPS 4709 C] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Ms. Jesintha, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. ARV Sreenivasan, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 17.03.2023 for Assessment Year 2018-19. 2. At the outset, the Ld.AR of the assessee brought to our notice that the appeal has been filed belatedly by ‘761’ days and assessee has filed an affidavit explaining the cause for the delay. Having gone through the Printed from counselvise.com ITA No.1870/Chny/2025 (AY 2018-19) Abdul Majeed Salim :: 2 :: contents of the same, we find that cause for delay was reasonable, so we excuse the same and proceed to hear the assessee’s appeal on merits. 3. The brief facts of the case are that the AO made an addition of Rs.16,01,65,449/- being Unsecured loans treated as unexplained credit u/s 68 and cash deposits of Rs.6,56,98,450/- treated as unexplained credit u/s 68 of the Act. The ld.CIT(A) dismissed the appeal as unadmitted on account of non-prosecution. 4. Aggrieved, assessee is in appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 6. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence. Accordingly, the impugned order is set aside and the appeal is restored back to the appeal file to the Ld. CIT(A) for hearing on merits subject to cost of Rs.15,000/- (Rupees Fifteen Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Printed from counselvise.com ITA No.1870/Chny/2025 (AY 2018-19) Abdul Majeed Salim :: 3 :: the Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the ld.CIT(A). 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "