SMT. SHANKARALINGAM ARUNTHATHI, CHENNAI V. ACIT, NCW - 11 (1), CHENNAI

ITA 2535/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0344 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 10-02-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 05-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS R ANITA
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause; Set aside
• Section: 148; 144

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A. NO. 2535/CHNY/2019 / ASSESSMENT YEAR :2011-12 SMT. SHANKARALINGAM ARUNTHATHI, NO. 252, CHELLAPPA STREET, KOSAPET, CHENNAI 600 012. [PAN:AAIPA0609F] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE WARD 11(1), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE / RESPONDENT BY : MRS. R. ANITA, JCIT / DATE OF HEARING : 10.02.2021 /DATE OF PRONOUNCEMENT : 15.03.2021 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 13, CHENNAI, DATED 27.06.2019 RELEVANT TO THE ASSESSMENT YEAR 2011-12. BESIDES CHALLENGING THE CONFIRMATION OF DISALLOWANCE OF .10,93,917/- AS UNEXPLAINED SOURCE OF CASH AS INCOME FROM OTHER SOURCES, THE ASSESSEE HAS ALSO CHALLENGED THE EX-PARTE ORDER PASSED BY THE LD. CIT(A) BY RAISING SPECIFIC GROUND. 2. BRIEF FACTS OF THE CASE ARE THAT DURING THE FINANCIAL YEAR 2010-11, THE ASSESSEE MADE CASH DEPOSITS OF .10,78,000/- IN HER SAVINGS BANK ACCOUNT I.T.A. NO. 2535/CHNY/19 2 WITH INDIAN OVERSEAS BANK, CHENNAI. SINCE THE ASSESSEE HAS NOT FILED HER RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011-12, THE ASSESSING OFFICER ISSUED NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] FOR FILING THE RETURN OF INCOME. THE NOTICE RETURNED UNSERVED WITH THE REMARK THAT NO SUCH PERSON. THEREAFTER, THE NOTICE WAS SERVED BY AFFIXING AT THE ADDRESS AVAILABLE IN THE PAN DATABASE. THERE WAS NO COMPLIANCE TO THE NOTICES ISSUED TO THE ASSESSEE IN THE ADDRESS GIVEN IN THE BANK ACCOUNT ALSO. THEREAFTER, A SHOW-CAUSE NOTICE WAS ISSUED TO THE ASSESSEE TO EXPLAIN THE CASH DEPOSITED IN THE BANK ACCOUNT ON VARIOUS DATES. IN RESPONSE, THE AR OF THE ASSESSEE APPEARED AND FILED POWER AND A COPY OF ITR-V INDICATING THAT THE RETURN WAS FILED ON 19.08.2018 ADMITTING A TOTAL INCOME OF .15,917/- BEING THE INTEREST FROM SAVINGS BANK ACCOUNT. AS THE RETURN WAS NOT E-VERIFIED, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 144 OF THE ACT. ON APPEAL, SINCE THE ASSESSEE COULD NOT RESPONDED/REPRESENTED HER CASE, THE LD. CIT(A) DISMISSED THE APPEAL ON MERITS. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. NONE REPRESENTED ON BEHALF OF THE ASSESSEE WHEN THE APPEAL WAS TAKEN UP FOR HEARING. HENCE WE PROCEED TO DECIDE THE APPEAL AFTER HEARING THE LD. DR. 4. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. ON PERUSAL OF THE APPELLATE ORDER, THE LD. CIT(A) HAS STATED THAT THERE WAS NO RESPONSE TO THE NOTICES ISSUED ON VARIOUS DATES, BUT, THERE WAS NO I.T.A. NO. 2535/CHNY/19 3 MENTION ABOUT SERVICES OF NOTICES. IN THE GROUNDS OF APPEAL, THE ASSESSEE HAS STATED THAT SHE WAS PREVENTED BY REASONABLE CAUSE FOR NOT PUTTING APPEARANCE BEFORE THE AUTHORITIES BELOW AND SHE HAS A GOOD CASE ON MERITS AND IS KEEN ON PROSECUTING THE APPEAL AND PRAYED FOR AN OPPORTUNITY OF BEING HEARD TO PRESENT HER CASE WITH EVIDENCE TO SUBSTANTIATE THE GENUINENESS OF THE TRANSACTION. CONSIDERING THE ABOVE PLEA TAKEN BY THE ASSESSEE, WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD TO REPRESENT ITS CASE BEFORE THE LD. CIT(A) TO MEET THE ENDS OF NATURAL JUSTICE. ACCORDINGLY, WE SET ASIDE THE APPELLATE ORDER AND THE LD. CIT(A) IS DIRECTED TO ADJUDICATE THE ISSUE RAISED IN THE APPEAL OF THE ASSESSEE ON MERITS AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ALSO DIRECTED TO PRODUCE THE EVIDENCE TO SUBSTANTIATE THE GENUINENESS OF THE TRANSACTION BEFORE THE LD. CIT(A) FOR CONSIDERATION. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 15 TH MARCH, 2021 IN CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 15.03.2021 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.