SUBRAMANIAN RAMANATHAN SUBRAMANIAN , PUDUKKOTTAI V. ITO , WARD 1 , PUDUKKOTTAI

ITA 864/CHNY/2022

AI Insights

The case involves an appeal by Sh. Subramanian Ramanathan Subramanian against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed an assessment made by the Assessing Officer under section 143(3) of the Income Tax Act. The assessment was based on the alleged manipulation of books of accounts and unexplained cash deposits amounting to Rs. 22.33 lakhs during the demonetization period. The Tribunal noted the assessee's failure to represent during the appellate proceedings but decided to restore the case to the CIT(A) for a fresh hearing, citing the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133898 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 25-10-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

आयकर अपीलीय अिधकरण ‘बी/एस एम सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B/SMC’ BENCH, CHENNAI माननीय /ी मनोज कु मार अ3वाल ,लेखा सद7 के सम8। BEFORE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.864/Chny/2022 (िनधा>रण वष> / Assessment Year: 2017-18) Sh. Subramanian Ramanathan Subramanian 45A, Ambethkar Nagar, Alangudi, Pudukkottai – 622 301 बनाम/ V s. ITO Ward-I, Pudukkottai. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . E ZUP S -9 1 1 1 -k (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri Y. Sridhar (C.A) & Mrs. B. Revathi (Advocate)– Ld. ARs थ की ओरसे/Respondent by : Shri Sanat Kumar Raha (Addl. CIT)-Ld. DR सुनवाई की तारीख/Date of Hearing : 20-02-2023 घोषणा की तारीख /Date of Pronouncement : 20-02-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 23-05-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 31-12-2019. 2. The Registry has noted delay of 96 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee wherein it has been submitted that the delay in filing the appeal was neither intentional nor wanton. It has also been ITA No.864/Chny/2022 - 2 - submitted that the assessee being a senior citizen was residing in a remote undeveloped area where there was no access to internet facility to respond to e-proceedings. Though Ld. Sr. DR opposed condonation of delay, however, considering the above stated facts, I hold that delay deserve to be condoned. Accordingly, the appeal is admitted for adjudication on merits. 3. Upon perusal of assessment order, it could be seen that the assessee has deposited cash of Rs.22.33 Lacs in certain bank accounts during demonetization period. Accordingly, the assessee was directed to prove the source of the same. After considering assessee’s submissions, Ld. AO alleged that the books of accounts were manipulated and the same were not reliable. Finally, rejecting the books of account, the assessment was framed on best judgment basis u/s 144 and total income was determined at Rs.26.18 Lacs after adding cash deposited by the assessee in Specified Bank Notes (SBN). Though the assessee preferred further appeal, however, it failed to make any submissions during appellate proceedings despite being provided with various opportunities as enumerated in para 5.1 of the impugned order. In the result, the assessment was confirmed against which the assessee is in further appeal before us. The Ld. AR pleaded for another opportunity of hearing before lower authorities. 4. I find that the assessee has remained negligent to make any representation before Ld. CIT(A). However, keeping in mind the principle of natural justice, I deem it fit to provide another opportunity of hearing to the assessee. Accordingly, the appeal is restored back to the file of Ld. CIT(A) for fresh adjudication after affording reasonable ITA No.864/Chny/2022 - 3 - opportunity of hearing. The assessee, in turn, is directed to substantiate its claim. 5. The appeal stand allowed for statistical purposes. Order pronounced on 20 th February, 2023. Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद7 / ACCOUNTANT MEMBER चे)ई / Chennai; िदनांक / Dated : 20-02-2023 EDN/- आदेश की Qितिलिप अ3ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. िवभागीय ितिनिध/DR 5. गाड फाईल/GF