GOVINDAN SETHURAMAN MADHU HARI KRISHNA REDDY, CHENNAI V. THE ITO, NON CORPORATE WARD-19(5), CHENNAI

ITA 616/CHNY/2023

AI Insights

The case involves an appeal by the assessee, Govindan Sethuraman Madhu Hari Krishna Reddy, against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The primary issue arose from the assessee's failure to file a return of income and the subsequent scrutiny of cash deposits made during the demonetization period, which amounted to Rs. 16,74,500. The Assessing Officer added this amount under sections 69 and 115BBE of the Income-tax Act, 1961, due to the lack of satisfactory explanation regarding the source of these deposits. The CIT(A) initially disposed of the appeal exparte due to non-appearance of the assessee, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134817 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 25-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 14-05-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 69

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी वी दुगाᭅ राव, ᭠याियक सद᭭य एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 616/Chny/2023 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Govindan Sethuraman Madhu Hari Krishna Reddy, 114C, Bharathidasan Colony, K K Nagar, Chennai – 600 078. [PAN: ACBPH-5614-E] v. The Income Tax Officer, Non Corporate Ward -19(5), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. AR V Sreenivasan, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 26.06.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 26.06.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 16.03.2023 and pertains to assessment year 2017-18. 2. The brief facts of the case are that, the assessee has not filed his return of income for the assessment year 2017-18. :-2-: ITA. No: 616/Chny/2023 The case was selected for scrutiny to verify cash deposits made during demonetization period. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has made cash deposit to State Bank of India during demonetization period amounting to Rs. 16,74,500/-. Since, the assessee could not offer explanation for source for cash deposits, the Assessing Officer has made additions u/s. 69 r.w.s. 115BBE of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). The assessee carried the matter in appeal before the first appellate authority, but neither appeared nor filed any details, which is evident from Para 4 of ld. CIT(A) order, where the ld. CIT(A) had given number of opportunities to the assessee to file details to justify its case. Therefore, the ld. CIT(A) disposed off appeal filed by the assessee exparte, on the basis of material available on record. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 3. None appeared for the assessee. We have heard the ld. Sr. DR, AR V Sreenivasan, Addl. CIT, and perused relevant material available on record. We find that the ld. CIT(A) disposed off appeal filed by the assessee exparte for non- :-3-: ITA. No: 616/Chny/2023 prosecution, which is evident from Para 4 of CIT(A) order, where the ld. CIT(A) gave number of opportunities to the assessee on various dates, but the assessee neither appeared nor sought any adjournment. It is a well settled principle of law by the decisions of various courts and tribunals that, when the appellant is not seriously prosecuting their appeal, then the appellate authorities are left with no option but to dispose off appeal filed by the appellant. However, said appeal should be disposed off on merits on the basis of material available on record. In the present case, although the CIT(A) disposed off appeal filed by the assessee exparte, but said appeal has been disposed off on technical ground for non-appearance. Therefore, we are of the considered view, that the issue needs to go back to the file of the CIT(A) to give one more opportunity of hearing to the assessee. Thus, we set aside the order passed by the CIT(A) and restore the issue back to the file of the CIT(A) and direct the CIT(A) to reconsider the issue after providing reasonable opportunity of hearing to the assessee. Needless to say, the assessee shall appear before the CIT(A) and furnish necessary details without seeking any adjournment, unless otherwise warrants. :-4-: ITA. No: 616/Chny/2023 4. In the result, appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 26 th June, 2023 at Chennai. Sd/- (वी दुगाᭅ राव) (V. DURGA RAO) ᭠याियकसद᭭य/Judicial Member Sd/- (मंजुनाथ. जी) (MANJUNATHA. G) लेखासद᭭य/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated: 26 th June, 2023 JPV आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. अपीलाथᱮ/Appellant 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ/CIT 4. िवभागीय ᮧितिनिध/DR 5. गाडᭅ फाईल/GF