AI Insights
The case involves Earlandi Mani, an individual engaged in the business of manufacturing rice and paddy, who appealed against the order of the CIT(A) which confirmed the addition of cash deposits amounting to Rs.30,42,530 under section 69A of the Income-tax Act, 1961. The initial assessment by the Assessing Officer under section 143(3) of the Act had added these deposits to the assessee's income. The CIT(A) passed an ex-parte order due to non-compliance by the assessee to the notices issued. The Tribunal found that the CIT(A) had confirmed the addition without adjudicating the issue on merits and thus decided to remit the matter back to the CIT(A) for a detailed examination.
Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 669485 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
26-06-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2017-2018
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.1174/Chny/2025 िनधा :रण वष: /Assessment Year: 2017-18 Earlandi Mani, No.167, Pillaiyar Koil Street, Redhills, Chennai-600052. [PAN: AOJPM 8618K] Vs. The Income Tax Officer, Non Corporate Circle-10(3), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri R. Ganesan, C.A IJथG की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 26.06.2025 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 24.05.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 12.12.2019. ITA No1174/Chny/2025 Earlandi Mani :- 2 -: 2. There is a delay of 268 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. The assessee is an individual and doing business of manufacturing of rice and paddy and is commission agent. The assessee had filed his return of income on 29.01.2018 admitting total income of Rs.4,95,840/-. The A.O in the order passed u/s. 143(3) of the Act and made addition on cash deposits of Rs.30,42,530/-. Aggrieved against the addition, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) passed order ex-parte without adjudicating the issue on merits as the assessee has not made compliance to the notices issued. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) had passed order ex-parte without ITA No1174/Chny/2025 Earlandi Mani :- 3 -: adjudicating the issue on merits therefore, one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A). 5. 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. 6. 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 of cash deposits amounting to Rs.30,42,530/- u/s. 69A of the Act, due to the non- compliance of the assessee, without adjudicating the issue on merits. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. 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 co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing ITA No1174/Chny/2025 Earlandi Mani :- 4 -: 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 26th day of June, 2025 at Chennai. 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: 26th June, 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 "
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