ARUNACHALAM RAMAKRISHNAN SHANMUGASUNDARAM RAJESH,CHENNAI V. ACIT, CORP. CIRCLE-2, COIMBATORE

ITA 1388/CHNY/2025

AI Insights

The case involves Arunachalam Ramakrishnan Shanmugasundaram Rajesh, the appellant, who contested the orders of the Assessing Officer and the CIT(A) regarding unexplained expenditure and cash deposits for the Assessment Year 2010-11. The initial assessments and subsequent appeals were dismissed ex-parte due to non-compliance by the assessee. The Tribunal, considering the principles of natural justice, decided to provide another opportunity for the assessee to present his case, subject to certain conditions including the payment of costs and compliance with procedural requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711404 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: S. GIRISH KUMAR
• Keywords: Set aside; Unexplained expenditure; Principle of natural justice; Non compliance
• Section: 147; 144; 69C

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 र, \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.1388/Chny/2025 िनधा :रण वष: /Assessment Year: 2010-11 Arunachalam Ramakrishnan Shanmugasundaram Rajesh, 29, CS Block, 16th Street, Near Mahakaliamman Temple, Anna Nagar, Chennai-600040. [PAN: AGMPR 7008P] Vs. The Asst. Commissioner of Income Tax, Corporate Circle-2, Coimbatore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri S. Girish Kumar, Advocate HIथF की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 25.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2010-11 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 14.12.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) on 28.12.2017. Printed from counselvise.com ITA No.1388/Chny/2025 Arunachalam Ramakrishnan Shanmugasundaram Rajesh :- 2 -: 2. There is a delay of 440 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. At the outset, the Ld. Authorized Representative has submitted that the assessment order in this case has been passed ex-parte u/s. 144 r.w.s 147 of the Act and the Ld CIT(A) has also dismissed the appeal ex-parte, therefore one more opportunity be granted to the assessee before the A.O. 4. On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex-parte as the assessee has been non compliance to the notices issued. Printed from counselvise.com ITA No.1388/Chny/2025 Arunachalam Ramakrishnan Shanmugasundaram Rajesh :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the addition made by A.O towards unexplained expenditure u/s. 69C of the Act, amounting to Rs.16,17,421/-, and has restricted the addition in respect of cash deposits made in the bank account u/s. 69A of the Act to Rs.2,38,083/, primarily due to the non-compliance of the assessee. The assessment order has also been passed ex-parte. In the interest of justice and keeping in view the principles of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate his case before the A.O subject to payment of costs of Rs.2,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we set aside both the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In view of the Printed from counselvise.com ITA No.1388/Chny/2025 Arunachalam Ramakrishnan Shanmugasundaram Rajesh :- 4 -: above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th day of July, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (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: 25th July, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "