ARUN PHARMA AND SURGICALS,RANIPET V. ITO, WARD-1, VELLORE

ITA 2769/CHNY/2025

AI Insights

The case involves Arun Pharma and Surgicals, the appellant, contesting an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issue was the dismissal of the appeal in limine by the CIT(A) due to the assessee's failure to provide an explanation for a 260-day delay in filing the appeal. The Assessing Officer had previously treated a total credit of 57,94,287 as unexplained money under section 69A of the Income Tax Act, 1961, following non-responses to notices regarding cash deposits made during the demonetization period. The Tribunal allowed the appeal for statistical purposes, directing the CIT(A) to reconsider the case, including the assessee's legal argument that the reopening of the assessment was void ab initio as the notice was issued by the Jurisdictional Assessing Officer and not the Faceless Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824482 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 07-10-2025
• Other Referred Cases: TVS Credit Services Ltd. v. DCIT [2025] (8) TMI 217 dated 24.06.2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LATCHANA
• Assessee Lawyers: ABHISHEK MURALI
• Keywords: Condonation of delay; Opportunity of being heard; Reopening of assessment
• Section: 147; 148; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं सुŵी एस.पȧावती,, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Ms. S. Padmavathy, Accountant Member आयकर अपील सं./I.T.A. No.2769/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Arun Pharma and Surgicals, No. B68, Emerald Nagar, SIPCOT, Walaja Taluk, Ranipet 632 403, Tamil Nadu. [PAN:ABDFA1273H] Vs. The Income Tax Officer, Ward 1, Vellore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Abhishek Murali, C.A. ŮȑथŎ की ओर से/Respondent by : Ms. Latchana, JCIT सुनवाई की तारीख/ Date of hearing : 17.12.2025 घोषणा की तारीख /Date of Pronouncement : 31.12.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 31.07.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18. 2. We find that this appeal is filed with a delay of 7 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, in Printed from counselvise.com I.T.A. No.2769/Chny/25 2 the interest of justice, we condone the delay and admit the appeal for adjudication. 3. The assessee raised 9 (ii to x) grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in dismissing the appeal in limine. 4. The Assessing Officer noted that the assessee made cash deposits during demonetization period at ₹.10,53,020/-. After following due procedure, the Assessing Officer issued notice under section 148 of the Income Tax Act, 1961 [“Act” in short] on 11.07.2022. Thereafter, notices under section 142(1) of the Act were issued to the assessee to explain the source for the cash deposit, however, there was no response from the assessee. As per bank statement, the Assessing Officer noted total credit of ₹.57,94,287/- and a show-cause notice issued on the assessee as to why the said credits shall not be treated as unexplained money under section 69A of the Act, but, however, there was no reply from the assessee. Accordingly, the Assessing Officer completed the assessment under section 147 r.w.s. 144 of the Act dated 19.04.2023 by treating the entire credits of ₹.57,94,287/- as unexplained money under section 69A of the Act. The ld. CIT(A) dismissed the appeal since the assessee failed to furnish explanation for the delay of 260 days in filing the appeal. Printed from counselvise.com I.T.A. No.2769/Chny/25 3 5. The ld. AR Shri Abhishek Murali, CA submits that the assessee preferred an appeal before the ld. CIT(A) against assessment order and omitted to file a proper application for condonation of delay and prayed that the assessee may be permitted to file the petition for condonation of delay before the ld. CIT(A). The ld. AR further submits that the assessee raised a legal ground in the form of additional grounds as reopening of assessment is void ab initio as the notice under section 148 of the Act issued by the Jurisdictional Assessing Officer and not the Faceless Assessing Officer and the same may be allowed to raise before the ld. CIT(A). The ld. DR Ms. Latchana, JCIT did not raise any serious objection. 6. Considering the submissions of the ld. AR and the ld. DR, we direct the ld. CIT(A) to consider the delay condonation petition as may be filed by the assessee as well as consider the legal ground and pass order in accordance with law keeping in mind the decision of the Hon’ble High Court of Madras in the case of TVS Credit Services Ltd. v. DCIT [2025] (8) TMI 217 dated 24.06.2025 within six months from the date of the receipt of this order by granting reasonable opportunity of being heard to the assessee. Thus, the grounds raised by the assessee are allowed for statistical purposes. Printed from counselvise.com I.T.A. No.2769/Chny/25 4 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st December, 2025 at Chennai. Sd/- Sd/- (S. PADMAVATHY) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 31.12.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "