ARUMUGAM PAVALAKKODI,VILLUPURAM V. ITO, WARD-2, VILLUPURAM

ITA 1822/CHNY/2025

AI Insights

The case involves Arumugam Pavalakkodi, the appellant, who contested the addition of Rs. 1,62,70,626 as unexplained cash credits in her bank account for the assessment year 2011-12. The Income Tax Officer (ITO) initially made this addition due to the absence of satisfactory submissions from the assessee. Both the ITO and the Commissioner of Income Tax (Appeals) passed ex-parte orders against the assessee, leading to her appeal to the Tribunal. The Tribunal noted the procedural lapses and the lack of a speaking order from the ITO, which necessitated a re-examination of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774722 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 25-06-2025
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEERAMANY K; IRS
• Assessee Lawyers: S. SRIDHAR
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Unexplained cash credit; Recovery proceedings

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI माननीय श्री मनु क ुमार धिरर ,न्याधयक सदस्य एवं माननीय श्री अमिताभ शुक्ला, लेखा सदस्य क े सिक्ष BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND HON’BLE SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1822/Chny/2025 Assessment Years: 2011-12 Arumugam Pavalakkodi, No.76 Salem Main Road, Chinnasalem, Kallakkurichi, Villupuram, Tamil Nadu-606 201. [PAN: BRUPP8511R] Income Tax Officer, Ward-2, Villupuram. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.S.Sridhar, Advocate. प्रत्यर्थी की ओर से /Revenue by : Shri Veeramany K, IRS सुनवाई की तारीख/Date of Hearing : 25.08.2025 घोषणा की तारीख /Date of Pronouncement : 03.09.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2022-23 / 1051051140(1) dated 21.03.2023 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2011-12. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. Printed from counselvise.com ITA No.1822 /Chny/2025 Page - 2 - of 5 2.0 It has been noted that there is a delay of 756 days in the case, in filing of this appeal before the tribunal. In its affidavit the assessee has pleaded that the assessee is a senior citizen having multiple ailments and that she is not conversant with the electronic regime of the Income Tax Department. The same contributed to ex-parte order passed by the Ld.First Appellate Authority. It was only when the recovery proceedings were initiated that the assessee learnt of the impugned appellate order. All these activities contributed to the delay which was neither willful nor wanton. The assessee submitted that there will not be case of any non- compliance now. We have considered the justification put forth by the assessee and we are satisfied with their adequacy. We are also conscious of the fact that no litigant gains by intentionally delaying its own matters. The Ld. DR did not pose any serious objections to the delay save that cost be imposed for wasting the precious time of the courts. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 At the outset, the Ld. Counsel for the assessee submitted that both the lower authorities the Ld.AO as well as Ld.CIT(A) has passed ex- parte orders in case of the assessee. It was submitted that the only issue under consideration is an addition of Rs.1,62,70,626/- on account of unexplained cash credits in assessee’s bank account. The impugned addition was made by the Ld.AO for want of any submission and details Printed from counselvise.com ITA No.1822 /Chny/2025 Page - 3 - of 5 by the assessee. The Ld. Counsel for the assessee submitted that the Ld.First Appellate Authority has also confirmed the addition by passing an ex-parte order without giving sufficient opportunity of being heard. It was accordingly pleaded that in the interest of justice the matter may be restored back to the file of Ld.AO for readjudication. The Ld. Counsel assured that full compliance would now be made to the statutory notices. 4.0 Per contra the Ld.DR would like to make us believe on the correctness of the order of lower authorities. It was however simultaneously pleaded that costs be imposed upon the appellant for wasting the time of the Bench. 5.0 We have heard rival submissions in the light of material available on records. As per facts recorded by the Ld. AO in his order, he had given opportunities to the assessee for filing the required details which were not satisfactorily filed by the assessee leading to his making the impugned addition. We have however noted that the order passed by the Ld. AO is not a speaking order and clear facts have not been brought on records before making the impugned addition. There are also indications of no enquiries conducted by the Ld.AO. Before the Ld.First Appellate Authority also the conduct of the assessee was far from satisfactory as far as compliance to statutory notices are concerned leading to dismissal of the appeal for want of adequate persecution by the assessee. Printed from counselvise.com ITA No.1822 /Chny/2025 Page - 4 - of 5 6.0 We have thus noted that inadequate submission of details and evidences, before the lower authorities qua sources of deposits in assessee’s bank account lies at the core of the controversy. We are therefore of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and file all supporting evidences before the Ld.AO. The assessing officer is the primary authority under the income tax act to be examine facts of a case in the light of available evidences before determining correct taxable income of a tax payer. We therefore set aside the order of lower authorities on this issue and we direct the Ld. AO to readjudicate the matter de novo by examining the matter afresh in accordance with law and by passing a speaking order. Reliance in this regard is placed upon the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non-compliance on the part of the assesse can be adversely viewed. We however find force in the argument of the Ld. DR that assessee’s repeated non-compliance has indeed caused loss of precious time of the statutory authorities. Consequently, the decision to remit the matter to the Ld. AO is however subject to payment of cost of Rs.3,000/- (Rupees three thousand only) by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within 30 days of the Printed from counselvise.com ITA No.1822 /Chny/2025 Page - 5 - of 5 receipt of this order. Accordingly, all the grounds of appeal raised by the assesse on this issue are allowed for statistical purposes. 7.0 In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced on 3rd , Sept-2025 at Chennai. Sd/- (मनु क ुमार धिरर) (MANU KUMAR GIRI) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 3rd , Sept-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF Printed from counselvise.com "