COIMBATORE DHARMARAJ SUGANYA,COIMBATORE V. JCIT, WARD-1, COIMBATORE

ITA 1350/CHNY/2025

AI Insights

The case involves an appeal by Coimbatore Dharmaraj Suganya against the orders of the Assessing Officer and the Learned Commissioner of Income Tax (Appeals), which were passed ex-parte under section 144 of the Income-tax Act, 1961. The appeal was delayed by 495 days, for which a condonation petition was filed and accepted. The primary issues in the appeal were the addition of cash deposits during the demonetization period amounting to Rs. 28,07,892 under section 69A of the Act, and the estimation of business income at 3.4% of the credits in the bank account due to non-compliance by the assessee. The Tribunal found that the principles of natural justice warranted another opportunity for the assessee to present his case before the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711782 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: A.G. SATHAYANARAYAN
• Keywords: Set aside; Business income; Principle of natural justice; Non compliance
• Section: 144

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.1350/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 Coimbatore Dharmaraj Suganya, 4B, Kumarean Residency, 2nd Floor, Bhaathi Nagar, Sirumugai, Coimbatore – 641302. [PAN: BKVPS 9496N] Vs. The Jt. Commissioner of Income Tax, Ward-1, Coimbatore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथG की ओर से/ Appellant by : Shri A.G. Sathayanarayan, Advocate IJथG की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 24.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 25.10.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 12.12.2019. Printed from counselvise.com ITA No.1350/Chny/2025 Coimbatore Dharmaraj Suganya :- 2 -: 2. There is a delay of 495 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 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.1350/Chny/2025 Coimbatore Dharmaraj Suganya :- 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 of cash deposits during demonetization period amounting to Rs.28,07,892/- u/s. 69A of the Act, and estimated business income @ 3.4% of the credits in the bank account, due to the non-compliance of the assessee. The assessment order has also been passed ex-parte. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O subject to payment of costs of Rs.5,000/-. 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 above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.1350/Chny/2025 Coimbatore Dharmaraj Suganya :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 24th 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: 24th 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 "