CHINNUSAMY SATHYA,NAMAKKAL V. THE INCOME TAX OFFICER, WARD-1, NAMAKKAL

ITA 1332/CHNY/2025

AI Insights

The case involves appeals by the assessee, Chinnusamy Sathya, against the orders of the Learned Commissioner of Income Tax (Appeal) NFAC, Delhi, which arose from the orders under sections 144 and 271(1)(c) of the Income Tax Act for the Assessment Year 2016-17. The appeals were filed after a delay of 250 days, which was condoned by the Tribunal. The primary issue in the appeals was the reopening of the assessee's case by the AO under section 148 of the Act, following which the AO treated a commission or brokerage income of Rs. 36,16,396 as the income of the assessee under section 68 of the Act, due to non-filing of return and non-appearance of the assessee in the assessment proceedings. The CIT(A) affirmed the AO's decision, leading to the current appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711641 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S.LAKSHMI
• Keywords: Set aside; Corroborative evidences; TDS
• Section: 144; 271(1)(c); 68

Judgement Text

"आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री मनु क ुमार गिरर, न्यागिक सदस्य एवं श्री जगदीश, लेखा सदस्य क े समक्ष BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1331 and 1332/Chny/2025 ननिाारण वर्ा/Assessment Year: 2016-17 Chinnusamy Sathya, No.9-119 Aathikattur, Anangur Post, Thiruchengode-TK, Namakkal, Tamil Nadu-637 304. v. Income Tax Officer, Ward-2, Namakkal [PAN: DDQPS3730F] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Mr.T. S. Lakshmi Venkataraman, FCA(Virtual) प्रत्यर्थी की ओर से /Respondent by : Mr. Gauthami Manivasagam, JCIT सुनवाईकीतारीख/Date of Hearing : 22.07.2025 घोर्णाकीतारीख /Date of Pronouncement : 23.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: These appeals preferred by the assessee are against the orders of the Learned Commissioner of Income Tax (Appeal) NFAC, Delhi (hereinafter in short ‘the Ld.CIT(A)’), both dated 13.06.2024 arising out of the orders u/s 144 and u/s 271(1)(c) for the Assessment Year (hereinafter in short ‘AY’) 2016-17. Printed from counselvise.com ITA No.1331 & 1332/Chny/2025(AY 2016-17) Chinnusamy Sathya :: 2 :: 2. At the outset, it is noted that the appeal has been filed after delay of ‘250’ days and the assessee has filed an affidavit explaining the delay. Having gone through the contents of the affidavit, we are satisfied that there is sufficient cause for the delay. Therefore, we condone the delay of ‘250’ days and proceed to adjudicate the grounds of both appeals raised by the assessee. ITA No.1331/Chny/2025 3. The brief facts of the case are that the case has been re-opened by issuance of notice u/s.148 of the Act dated 30.03.2021 after recording reason, to assess Commission or Brokerage income cover under section 194H of the Income Tax Act. The assessee has received Commission or Brokerage income of Rs.36,16,396/- from Aliceblue Commodities Pvt. Ltd. On which TDS of Rs.3,61,638/- has been deducted. However, assessee has not filed return of income for the relevant assessment year evading the tax as alleged. The assessee did not appear in assessment proceedings. Therefore, AO proceeded ex-parte and treated Rs.36,16,396/- as income of the assessee u/s 68 of the Act. The ld. CIT(A) also proceeded ex-parte and affirmed the order of the AO. Penalty proceedings u/s 271(1)(c) of the Act is also confirmed by the CIT(A) for concealment of his income. Now assessee is in appeal before us. Printed from counselvise.com ITA No.1331 & 1332/Chny/2025(AY 2016-17) Chinnusamy Sathya :: 3 :: 4. Before us, the ld. Counsel submitted that while adjudicating the matter, the ld. CIT(A) or AO has not given the proper opportunity of hearing and to file the evidences filed before the AO/CIT(A). He further pleaded that for one more opportunity to file the evidence before the CIT(A) or AO. The Ld. Addl. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee has not filed supporting evidences with regard to the addition before the ld. CIT(A). 5. We have gone through the orders of lower authorities and submission addressed by the ld. Departmental Representative. We are of the considered view that in the interest of justice assessee should be given one more opportunity before ld.AO to file all relevant evidences/documents to prosecute his case. Even neither evidence and nor explanation were filed before the AO. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.AO for de novo adjudication subject to cost of Rs.5000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessment after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld.AO shall be at liberty to proceed with the assessment proceedings as per law. Printed from counselvise.com ITA No.1331 & 1332/Chny/2025(AY 2016-17) Chinnusamy Sathya :: 4 :: ITA No.1332/Chny/2025 Since, we have set aside the quantum appeal to the file of ld.AO for denovo adjudication, consequently this penalty appeal is also set aside to AO. 6. In the result, both appeals filed by the assessee in ITA No.1331/Chny/2025 and ITA No.1332/Chny/2025 are allowed for statistical purpose. Order pronounced on the 23rd day of July, 2025, in Chennai. Sd/- (जगदीश) (JAGADISH) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार गिरर) (MANU KUMAR GIRI) न्यानयक सदस्य/JUDICIAL MEMBER चेन्नई/Chennai, ददनांक/Dated: 23rd July, 2025. KB/ 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकरआयुक्त/CIT, Chennai / Madurai / Salem / Coimbatore. 4. विभागीयप्रविविवि/DR 5. गार्डफाईल/GF Printed from counselvise.com "