EDAKKALATHUR DEVASSY DAIZ,THRISSUR V. ACIT, CIRCLE-2(1), THRISSUR

ITA 651/COCH/2025

AI Insights

The case involves Edakkalathur Devassy Daiz, the appellant, who contested the order of the Learned National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income-tax Act, 1961 for the Assessment Year 2017-18. The dispute arose from an addition of Rs. 1,83,55,160 to the assessee's income, which was treated as an unexplained source of income under section 68 of the Act by the Assistant Commissioner of Income Tax, Circle-2(1), Thrissur. The assessee, a C&F Agent, argued that this capital increase was due to service tax payments on transactions, including reimbursements. The Ld. CIT(A) upheld the assessment order exparte, leading to the current appeal. The tribunal found that the assessee was not given sufficient opportunity to present his case at the assessment and appellate stages, thus restoring the matter to the Ld. CIT(A) for a fresh decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785683 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 19-09-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: KRISHNA K.
• Keywords: Opportunity of being heard; Additional evidence; Reasonable cause
• Section: 143(3); 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI ANIKESH BANERJEE, JM ITA No. 651/Coch/2025 Assessment Year: 2017-18 Edakkalathur Devassy Daiz .......... Appellant Edakkalathur House, Ayyanthole P.O. Thriussur 680003 [PAN: ABPPD1785R] vs. ACIT, Circle 2(1), Thrissur ......... Respondent Assessee by: Ms. Krishna K., Advocate Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 27.10.2025 Date of Pronouncement: 29.10.2025 O R D E R Per: Anikesh Banerjee, JM The instant appeal of the assessee was filed against the order of the Learned National Faceless Appeal Centre, Delhi [for brevity, ‘Ld. CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2017-18, date of order 14/08/2025. The impugned order emanated from the order of the Assistant Commissioner of Income Tax, Circle-2(1), Thrissur (in short, ‘Ld.AO’) passed under section 143(3) of the Act, date of order 29/11/2019. Printed from counselvise.com 2 ITA No. 651/Coch/2025 Edakkalathur Devassy Daiz 2. The Ld.AR argued and stated that the addition was confirmed due to the increase of capital amount to Rs. 1,83,55,160/-. The assessee explained that the assessee is C&F Agent. The assessee has to pay service tax on all transactions including reimbursement transaction including principal & agent. The relevant documents are duly annexed in assessee’s appeal submission before the bench. The Ld. AO had not considered the assessee’s submission and treated the introduction of capital as unexplained source &added back with total income. The aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) passed an order exparte and uphold the impugned assessment order. Being aggrieved assessee filed an appeal before us. 3. The Ld. DR argued and stands in favour of the orders of the revenue authorities. 4. We heard the rival submissions and considered the documents available on the record. During the assessment the assessee unable to submit satisfactory explanation related to source of capital introduction. The Ld. AR in argument stated that the Ld AO without giving any proposals for addition or with issuance show-cause notice made the addition U/s 68 of the Act. The aggrieved assessee filed appeal before the Ld. CIT(A). Finally, the appeal order was also passed exparte. Having considered the totality of facts and circumstances, we are of the view that the assessee has demonstrated reasonable cause for the non-submission of documents before the Printed from counselvise.com 3 ITA No. 651/Coch/2025 Edakkalathur Devassy Daiz Ld. CIT(A) & Ld. AO. It is also evident that during the assessment & appellate proceedings, the assessee was not granted sufficient opportunity. Accordingly, in the interest of justice, we deem it appropriate to restore the matter to the file of the Ld. CIT(A). The assessee is directed to furnish all relevant documents and additional evidence, if any, before the Ld. CIT(A). The Ld. CIT(A) shall consider all such documents and evidence in accordance with law and decide the matter afresh after granting a reasonable opportunity of being heard to the assessee. We make it clear that we have not expressed any opinion on the merits of the case, so as not to prejudice the proceedings before the appellate authority. It is further directed that the assessee shall be diligent and fully cooperative in the set-aside proceedings to ensure expeditious disposal of the appeal. Accordingly, the matter is restored to the file of the Ld. CIT(A) for fresh adjudication. 6. In the result, appeal of the assessee bearing ITA No.651/Coch/2025 is allowed for statistical purposes. Order pronounced in the open court on 29th October, 2025. Sd/- Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (ANIKESH BANERJEE) JUDICIAL MEMBER Cochin, Dated: 29th October, 2025 n.p. Printed from counselvise.com 4 ITA No. 651/Coch/2025 Edakkalathur Devassy Daiz Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "