BALAMURUGAN ANNIYAMMAL,KANCHIPURAM V. ITO, WARD-1, KANCHIPURAM

ITA 3645/CHNY/2025

AI Insights

The case involves Balamurugan Anniyammal, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2020-21. The Income Tax Officer had reopened the assessment due to substantial financial transactions reported by the assessee, who initially did not file a return. Upon filing, the assessee could not substantiate the source of a cash deposit, leading to an addition of Rs.60,37,505 by the assessing officer. The CIT(A) dismissed the appeal ex-parte as the assessee did not respond to notices. The tribunal, considering the assessee's lack of technical knowledge and improper handling by the counsel, decided to remit the case back to the CIT(A) for a fresh evaluation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 842267 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 02-12-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.D. VIJAY KUMAR
• Assessee Lawyers: N. ARJUN RAJ
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी एबी टी. वक\u0019, ा ियक सद एवं सु\u0015ी पदमा वती यस, लेखा सद क े सम\" BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 3645/Chny/2025 िनधा $रण वष$ /Assessment Year: 2020-21 Balamurugan Anniyammal, 65C, Railway Road, Kanchipuram, Tamil Nadu-631501 PAN: AXZPA 4087 F Vs. The Income Tax Officer, Ward 1 Kanchipuram, (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ\u0019 की ओर से/ Appellant by : Mr. N. Arjun Raj, Advocate ()थ\u0019 की ओर से /Respondent by : Dr. M.D. Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.02.2026 घोषणा की ता रीख /Date of Pronouncement : 25.02.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 06.10.2025 for Assessment Year (AY) 2020-21. 2. The assessee is an individual and did not file the return of income. The assessing officer (AO) reopened the assessment for the reason that during the year under consideration the assessee has entered into substantial financial transactions. The AO reopened the assessment under section 148 after passing Printed from counselvise.com ITA No.3645/Chny/2025 Balamurugan Anniyammal :- 2 -: order under section 148A(d) of the act. The assessee filed the return of income in response to notice under section 148. However since the assessee could not properly substantiate the source for cash deposit made the AO made an addition to the tune of Rs.60,37,505/- by estimating a profit of 8% on the turnover reported as per the GST return. Aggrieved, the assessee filed further appeal before the CIT(A). The assessee did not respond to the notices issued, the CIT(A) dismissed the appeal ex-parte . The assessee is in appeal before the tribunal against the order of the CIT(A). 3. We heard the parties and perused the material on record. The Ld. AR submitted that the assessee is from a rural area and does not have any technical knowledge to access computers. The Ld. AR further submitted that the assessee therefore is completely dependent on counsel with regard to income tax matters who did not handle assessee's case properly. Accordingly the Ld. AR submitted that the assessee did not appear before the AO as well as CIT(A). The Ld. AR accordingly, prayed that the assessee be given one more opportunity be given to represent the case properly before the lower authorities. Considering the facts and circumstances unique to the assessee's case, we are inclined to give one more opportunity to the assessee by remitting the appeal back to the CIT(A). The CIT(A) is directed to consider the impugned issue on merits afresh by calling for necessary details and decide the case in accordance with law. The assessee is directed to file the relevant documents in support of the impugned additions made by the AO and cooperate with appellate proceedings without seeking unnecessary adjournments. It is ordered accordingly. Printed from counselvise.com ITA No.3645/Chny/2025 Balamurugan Anniyammal :- 3 -: 4. Since we have remitted the appeal back to the CIT(A) for fresh consideration the legal contentions raised by the assessee have become academic and left open accordingly. 5. In result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 25th day of February, 2026 at Chennai. Sd/- Sd/- (एबी टी. वक\u0019) (ABY. T. Varkey) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 25th February, 2026. EDN, Sr. P.S आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "