DAMODARAN,CHENNAI V. ITO, CHENNAI

ITA 2105/CHNY/2024

AI Insights

The case involves an appeal by Shri Arjunan Damodaran against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which arose from an assessment order by the National Faceless Assessment Centre for the Assessment Year 2018-19. The primary issue was the non-disclosure of income from the sale of immovable property, which the Assessing Officer (AO) noted and subsequently assessed a profit on the sale. The CIT(A) dismissed the initial appeal due to the non-appearance of the assessee, leading to the current appeal before the Income Tax Appellate Tribunal, Chennai.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29256 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 07-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 07-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A R V SRINIVASAN; IRS; ADD.
• Assessee Lawyers: K. SHANMUGAM
• Keywords: Set aside
• Section: 147; 148

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2105/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2018-2019) Shri Arjunan Damodaran 3/117, 16th Cross Street, Ganga Nagar, Mettukuppam, Maduravoyal, Chennai 600 095. [PAN: AOAPD 4577R] Vs. The Income Tax Officer, Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri K. Shanmugam, C.A., Ĥ×यथȸ कȧ ओर से /Respondent by : Shri ARV Srinivasan, IRS, Add. CIT. सुनवाई कȧ तारȣख/Date of Hearing : 07.11.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) The instant appeal filed by the assessee is directed against the order 06.06.2024 passed by the NATIONAL FACELESS APPEAL CENTRE (NFAC), Delhi, arising out of the assessment order dated 22.03.2023 passed u/s section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) by the NATIONAL FACELESS ASSESSMENT CENTRE for Assessment Year (‘AY’ in short) 2018-19. 2 ITA No.2105/Chny/2024 2. Brief facts of the case are that as per the information available with the revenue, the proceedings under section 147 of the Act were initiated after recording reasons by the AO. Notice u/s 148 of the Act was issued on 26.03.2022. The case has been opened as the assessee has sold 1210 sq. feet of an immovable property at Maduravoyal, Chennai for a sale consideration of rs.35,00,000/- to V.S.Rajan and R. Milkha Santhakumar. The assessee in the return of income filed on 05.02.2019 has not declared the sale consideration received and not admitted any STCL/LTCG. The AO noted that the assessee failed to submit documentary evidence of source and transaction of purchase of the said property and also failed to file documentary evidence with regard to the construction cost of Rs.22,00,000/-. The AO also noted that the assessee had not shown any stock or stock in progress from AY 2016-17 to 2018-19 related to purchase of property of Rs.10,20,000/-. However, the AO on the basis of Annexure 1A of sale deed dated 28.06.2017 has estimated the cost of construction as Rs.12,10,000/-. Therefore, the AO worked out the profit on sale at Rs.12,70,000/-. The AO in its assessment order dated 22.03.2023 made a variation in respect of issue of sale of property. Before the ld.CIT(A), assessee did not appear hence the Ld.CIT(A) proceeded ex-parte and dismissed the appeal and upheld the order of AO. Hence, assessee is further in appeal before us. 3. At the outset, ld.AR referred para 5 of the impugned order and submitted that notice issued by the ld.CIT(A) has not been noticed by the assessee hence culmination of the impugned order. The ld.AR prayed for an opportunity before the 3 ITA No.2105/Chny/2024 ld.CIT(A) to represent the matter again. The Ld.DR disputed the submissions of ld.AR. 4. We have heard the rival submissions, perused the record, impugned order. We find that during the course of hearing before ld.CIT(A), assessee did not appear despite five consequitive notices issued within 21 days in the month of May, 2024 itself. However, in the facts and circumstances of the case and in the interest of justice, we deem it fit to set aside the appeal to the file of ld.CIT(A) for fresh adjudication of appeal. We, also direct the assessee to check regularly the e-appeal proceedings, emails and submit requisite documents, if any, to substantiate the grounds raised in appeal. Thereafter, ld.CIT(A) will decide the appeal afresh considering submissions and evidence, if any, as per law and after affording adequate opportunity of hearing to the assessee. 5. In the result, the appeal filed by the assessees is allowed for statistical purposes. Order pronounced in the open court on 8th day of November, 2024 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 08-11-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "