ABHAY KUMAR MEHTA,CHENNAI V. ITO NON CORP. WARD 4(1), CHENNAI

ITA 2881/CHNY/2024

AI Insights

The case involves Abhay Kumar Mehta, who appealed against the orders of the Assessing Officer and the CIT(A) for the Assessment Year 2017-18. The appeal was initially delayed due to personal hardships faced by the assessee, including his mother's cancer diagnosis and the death of his elder brother during COVID-19, which he claimed affected his ability to manage his affairs and respond to legal notices. The Assessing Officer had passed an ex-parte order under section 144 of the Income-tax Act, 1961, due to non-compliance by the assessee in explaining the source of substantial cash deposits during the demonetization period. The CIT(A) also dismissed the appeal ex-parte for similar non-compliance. The Tribunal, considering the circumstances and the principles of natural justice, decided to remit the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107183 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Principle of natural justice
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2881/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2017-18 Abhay Kumar Mehta, Flat No.9B, 3rd Block, 9th Floor, Kences Brindavan Apartments, 175 Poonamallee High Road, Chennai – 600 010. Vs. The Income Tax Officer, Non Corporate Ward-4(1), Chennai. [PAN: AIPPM 5007Q] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri D. Anand, Advocate HIथF की ओर से /Respondent by : Ms. Pushpa Hemachand, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 29.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 26.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 07.12.2019. ITA No.2881/Chny/2024 :- 2 -: 2. There is a delay of 257 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal as under: “That delay in filing the appeal is because of diagnose of cancer of my mother and subsequently in her treatment, on the other hand my elder brother has also expired during Covid, which made me disturbed and have to take care of my mother treatment, making me unfit to apply my mind on filing of the appeal. The accountant who was handling my case has also left me who was aware of the appeal and have never brought to my notice, which made me unaware of the hearing proceedings, subsequently on myself coming to terms have come across the CIT(A) order which was time bared.” 3. We have considered the reasons for the delay in filing the appeal and are satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Accordingly, the delay is condoned. 4. The assessee has filed his return of income on 23.03.2018 by declaring total income of Rs.4,38,550/- for A.Y 2017-18. The case was selected for scrutiny under CASS. The A.O has observed that the assessee had deposited cash of Rs. 9,15,000/- during demonetization period. The A.O has provided several opportunities for the assessee to explain the source of these cash deposits, but the assessee failed to submit the required information. Accordingly, the A.O. passed an ex- parte order u/s. 144 of the Act. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued ITA No.2881/Chny/2024 :- 3 -: various notices, but there was no compliances to the notices and therefore, the Ld. CIT(A) also dismissed the appeal ex-parte. 5. The Ld. Authorized Representative (A.R) of the assessee has submitted that assessment order as well CIT(A) orders have been passed ex party and sufficient opportunity was not provided to the assessee therefore, the case may be remitted back to the A.O for fresh consideration in the interest of justice. 6. The Ld. Departmental Representative has relied on the orders of the authorities below. 7. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been passed ex-parte for the non-compliance by the assessee. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish ITA No.2881/Chny/2024 :- 4 -: complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29th January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 29th January, 2025.. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "