SENGODA GOUNDER NATARAJAN, NAMAKKAL V. THE ITO, WARD - 2, NAMAKKAL

ITA 1013/CHNY/2022

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The case involves an appeal by Shri Sengoda Gounder Natarajan against the order of the Commissioner of Income Tax (Appeals), which pertained to the assessment year 2017-18. The primary issue arose from the assessee's failure to explain the sources of cash deposits amounting to \\u20b911,56,900 made during the demonetization period. The Assessing Officer issued several notices under section 142(1) of the Income Tax Act, 1961, requiring the assessee to file a valid return and provide details of the cash deposits. However, the assessee failed to comply, leading to a best judgement assessment under section 144 of the Act, assessing the total income at \\u20b920,48,640. The CIT(A) dismissed the appeal due to non-compliance with the notices, a decision which was upheld by the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135112 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 11-01-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 28-11-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 144; 142(1); 250

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. No.1013/Chny/2022 िनधाŊरण वषŊ/Assessment Year: 2017-18 Shri Sengoda Gounder Natarajan, 6/93A, Vasuvampalayam, Kodarasampalayam PO, Kand Paramathivelur Taluk, Namakkal, Tamil Nadu 637 203. [PAN:ADMPN9251H] Vs. The Income Tax Officer, Ward 2, Namakkal. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 12.01.2023 घोषणा की तारीख /Date of Pronouncement : 24.01.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 07.11.2022 relevant to the assessment year 2017-18. 2. Brief facts of the case are that as per information available with the Department, the Assessing Officer noticed that the assessee had deposited cash of ₹.11,56,900/- into his bank accounts maintained with I.T.A. No.1013/Chny/22 2 ICICI Bank, State Bank of India and Indian Bank during the demonetization period relevant to the assessment year 2017-18. To examine the genuineness of the sources for the cash deposits made, the Assessing Officer issued a notice under section 142(1) of the Income Tax Act, 1961 [“Act” in short] dated 09.03.2018 and served on the assessee on 19.03.2018 through registered post. As per the notice under section 142(1) of the Act, the assessee was required to comply on or before 31.03.2018 by filing a valid return of income for the assessment year 2017-18. However, the assessee has not filed his return of income. Thereafter, despite various notices issued neither the assessee filed return of income nor furnished any material evidence. Finally, the Assessing Officer issued pre-assessment notice dated 21.09.2019 requiring the assessee to furnish the sources for cash deposits during demonetization period. However, the assessee has not filed his return of income and just filed a single sheet containing abstract of cash deposits and reported availing of loan by the assessee as source for cash deposits. Accordingly, with the available details, the Assessing Officer proceeded and concluded best judgement assessment under section 144 of the Act dated 17.10.2019 by assessing total income of the assessee at ₹.20,48,640/-. On appeal, the ld. CIT(A) dismissed the appeal of the assessee in the absence of any response or written submissions, I.T.A. No.1013/Chny/22 3 information or document filed before the ld. CIT(A). 3. On being aggrieved, the assessee is in appeal before the Tribunal. When the appeal was taken up for hearing, none appeared on behalf of the assessee or any adjournment petition filed. Hence, we proceed to decide the appeal on merits after hearing the ld. DR. 4. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. Against the assessment order under section 144 of the Act, the assessee preferred an appeal before the ld. CIT(A). Since the assessee has not filed any details in support of the grounds of appeal, the ld. CIT(A) dismissed the appeal by observing as under: “3. Notice u/s 250 of the I. T. Act was issued to the appellant on 05.03.2022 asking the appellant to file details in support of the grounds of appeal on or before 21.03.2022. However, the appellant did not reply to the notice issued. Accordingly, a 2 nd notice u/s 250 of the I.T. Act was issued on to the appellant on 07.04.2022 asking the appellant to file details in support of the grounds of appeal on or before 22.04.2022. However, appellant again did not reply to the 2 nd notice too till date. Thereafter, a 3 rd notice u/s 250 of the I. T. Act was issued on to the appellant on 03.10.2022 asking the appellant to file details in support of the grounds of appeal on or before 18.10.2022. In this notice the appellant was duly informed that this is the final opportunity granted. However, appellant again did not reply to the 3 rd notice too till date. In absence of details in support of GOA filed, appeal cannot be decided. The non compliance to the 3 notices issued shows that the appellant is not interested in pursuing his appeal. The order of AO is upheld and the appeal stands DISMISSED.” Since the assessee has not filed any details in support of the grounds of appeal filed by the assessee, we find no infirmity in the order passed the I.T.A. No.1013/Chny/22 4 ld. CIT(A). Thus, the appellate order passed by the ld. CIT(A) stands confirmed. 5. In the result, the appeal filed by the assessee is dismissed. Order pronounced on 24 th January, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 24.01.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.