ABDULMUJIB AMANULAA,COIMBATORE V. ITO, WARD-1, COIMBATORE

ITA 534/CHNY/2025

AI Insights

The case involves Mr. Abdulmujib Amanulaa, who is engaged in the retail business of pharmaceutical products under the name M/s.Arasan Medicals. During the assessment for the year 2017-18, it was discovered that Mr. Amanulaa had deposited a substantial amount of cash (Rs.10,07,630) into his bank account during the demonetization period. The AO issued notices under section 142(1) of the Income Tax Act, which the assessee failed to comply with, leading to an ex-parte assessment order under section 144. The assessee's subsequent appeal to the CIT(A) was dismissed due to non-compliance with notices and lack of evidence. The Tribunal, considering the principles of natural justice, decided to set aside the CIT(A)'s order and restore the matter to the AO for a fresh assessment, subject to the condition of a cost deposit by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 313097 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: ANANDD BABUNATH; F
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 2

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.534/Chny/2025 (िनधा\u0005रण वष\u0005 / Assessment Year: 2017-18) Mr. Abdulmujib Amanulaa, # 8/11, Palladam Road, Pollachi, Coimbatore-642 002. Vs The Income Tax Officer, Ward-1, Pollachi. PAN : ALYPA-0538-Q (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr. Anandd Babunath, F.C.A. \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Ms. Anitha, Addl. CIT सुनवाईक\bतारीख/Date of hearing : 24.04.2025 घोषणाक\bतारीख /Date of Pronouncement : 28.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against the order of the Ld. Ld. Commissioner of Income Tax (Appeals) (NFAC) Delhi [CIT(A)] dated 12.02.2025 for Assessment Year 2017- 18. 2. Brief facts are as follows: The assessee is an individual, engaged in the business of retail in pharmaceutical products in the name of M/s.Arasan Medicals. During the course of assessment proceedings, it was noticed by the AO that assessee has deposited cash amounting to Rs.10,07,630/- into his bank account during demonetization period. Therefore, the AO issued notice u/s.142(1) of the Act on 12.02.2018. But the assessee failed to comply with the notice as well as show cause notice dated 17.06.2019. Thus, the AO completed the assessment u/s.144 of the 2 ITA No. 534/Chny/2025 Act by passing ex-parte order on best judgment basis and made addition of Rs.10,07,630/- 3. Aggrieved, the assessee challenged order of assessment passed u/s.144 of the Act before the CIT(A). However, the assessee neither filed written submissions nor any evidences in support of its claim and failed to comply with the notices issued by CIT(A). Therefore, the CIT(A) dismissed the appeal filed by the assessee. Now, assessee is in appeal before us. 4. We have heard both the parties and perused records. Before us, the ld. Counsel for assessee submitted that assessee was not aware about the notices and the CIT(A) has passed an ex-parte order without providing sufficient opportunity of being heard. Therefore, he pleaded that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his case before the CIT(A). The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence, no lenient view is to be taken in this case and prayed for dismissal of the appeal. 5. Though, we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) as well as before the AO despite notices for the reasons stated above. Therefore, the impugned order is set aside and the appeal is restored back to the file of AO for denovo assessment, after affording proper opportunity 3 ITA No. 534/Chny/2025 of hearing to the assessee, subject to cost of Rs.10,000/- which shall be deposited by the assessee within 30 days from the date of receipt of the order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposit will be furnished by the Assessee before AO. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with proceedings on merits as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute the case diligently. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 28th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date:28.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "