AHAMED SYEDMOULAN HABEEB MOHAMED,COIMBATORE V. ITO NON CORPORATE WARD 3(1), COIMBATORE

ITA 3327/CHNY/2024

AI Insights

The case involves Ahamed Syedmoulan Habeeb Mohamed, the appellant, who did not file a return of income for the assessment year 2018-19. The Income Tax Officer (ITO) discovered substantial cash deposits amounting to Rs.1,48,69,442 in the appellant's account, leading to an addition under sections 69A and 115BBE of the Income Tax Act, 1961. The appellant's appeal to the Commissioner of Income Tax (Appeals) was dismissed ex-parte on merits due to non-response. The appellant then appealed to the Income Tax Appellate Tribunal, which noted the absence of proper notice and opportunity for the appellant to present his case, leading to the decision to set aside the previous order and remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29371 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Assessee Lawyers: GIRISH KUMAR
• Keywords: Set aside; Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.3327/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-2019) Ahamed Syedmoulan Habeeb Mohamed, 286A, Annaji Roa Road, Mettupalayam HO Coimbatore 641 301. [PAN: ANSPH 2395C] Vs. The Income Tax Officer, Non Corporate Ward 3(1) Coimbatore (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. Girish Kumar, Advocate Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. V. Aswathy, JCIT. सुनवाई कȧ तारȣख/Date of Hearing : 25.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 27.02.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1071202957(1) dated 13.12.2024. The assessment was framed by the Assessment Unit, Income Tax Department, for the assessment year 2018-19 u/s.147 r.w.s.144 r.w.s144B of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 15.02.2024. 2 ITA No.3327/Chny/2024 2. Brief facts of the case are that the appellant is an individual and is a non-filer. The return of income for the year under consideration has also not been filed by the assessee. The Ld. Assessing Officer got information that assessee has made total cash deposits to the tune of Rs.1,48,69,442/-. The ld. AO issued seven notices, however, there was no response from the assessee. Hence, the ld. AO made an addition of Rs.1,48,69,442/- u/s.69A r.w.s.115BBE of the Act. Assessee challenged the order of assessment before the ld.CIT(A) who proceeded ex-parte and dismissed the appeal on merits. Aggrieved, assessee is in appeal before us. 3. Before us, the ld. Counsel for assessee submitted that the assessee has inadvertently not received the notices issued by the AO and the ld.CIT(A) hence, asessee failed to avail opportunity to file evidence and documents to substantiate his explanation regarding deposits. 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 appeal. 4. 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) despite notices. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment. The Ld.AO shall proceed for denovo assessment after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence, confirmations and documents, if any, forthwith without any fail, failing which Ld. AO 3 ITA No.3327/Chny/2024 shall be at liberty to proceed with the assessment proceedings on merits as per law. We make it clear that all the issues are kept open before the ld.AO. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 27th February, 2025 at Chennai Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 27.02.2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "