DHANAPAL SETTU,TIRUVANNAMALAI V. ITO, WARD-1, TIRUVANNAMALAI

ITA 607/CHNY/2025

AI Insights

The case involves an appeal by the assessee, Dhanapal Settu, against the order of the Learned Commissioner of Income Tax, Appeal (CIT(A)), which confirmed the addition of Rs. 26,00,000 as unexplained cash under section 69A of the Income-tax Act, 1961. The assessment was reopened by the Assessing Officer (AO) on the grounds of a cash deposit of Rs. 52,00,000 in the bank account of the assessee. The primary legal issue in the appeal was the validity of the reopening of the assessment, as the notice under section 148 was issued beyond the three-year limit and the escaped income was below Rs. 50 lakhs, which raised questions under section 147 read with section 149(1) of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314117 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.P. GURUPRASAD
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Reopening of assessment
• Section: 147; 148

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.607/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2015-16 Dhanapal Settu, 11/90C, Velukanandal and Post, Tiruvannamalai – 604 407. [PAN: FPJPS 7189D] Vs. The Income Tax Officer, Ward-1, Tiruvannamalai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri M.Karunakaran, Advocate HIथF की ओर से /Respondent by : Shri M.P.Guruprasad, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 08.05.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the order of Learned Commissioner of Income Tax, Appeal (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.01.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 15.02.2024. ITA No.607/Chny/2025 :- 2 -: 2. The A.O has reopened the assessment on the ground that there was a cash deposit of Rs. 52,00,000/- in the bank account and made addition of Rs.26,00,000/- u/s. 69A of the Act in the assessment order passed after concluding that only Rs.26,00,000/- represented unexplained cash. On appeal before the Ld. CIT(A), the assessee has raised ground No.2, challenging the validity of the reopening of assessment that the notice u/s. 148 of the Act was issued on 02.04.2022 for the A.Y 2015-16, which was beyond three years from the end of the relevant assessment year and since, the alleged escaped income was below Rs. 50 lakhs, the reopening was invalid under the provisions of Section 147 r.w.s 149(1) of the Act. 3. The Ld. Authorized Representative (A.R) of the assessee has argued that the Ld. CIT(A) had not adjudicated the above ground and confirmed the addition made by the A.O. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. We note that ground No.2 raised before the Ld. CIT(A) was as under: ITA No.607/Chny/2025 :- 3 -: “2. The appellant submits that the assessment was re-opened by issue of notice u/s. 148 on 02.04.2022 for the assessment year 2015-16 after expiry of the three years from the end of the assessment year even though the alleged escaped income was below Rs. 50 lakhs which is invalid and against the provisions of section 147 r.w.s 149(1) of the Act.” 6. It is evident from the appeal order passed by Ld CIT(A) that the above ground was not adjudicated by the Ld. CIT(A). Therefore, we restore the matter back to the file of Ld CIT(A) to adjudicate the ground No.2 raised in appeal. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to cooperate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 08th May, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 08th May, 2025. EDN/- ITA No.607/Chny/2025 :- 4 -: 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 "