ELAPALAYAM MUTHUSAMY GOUNDER PALANISAMY, ERODE V. ITO WARD 2(1), ERODE

ITA 87/CHNY/2023

AI Insights

The case involves an appeal by Elapalayam Muthusamy Gounder Palanisamy against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which dismissed the assessee's appeal due to non-submission of any arguments or evidence despite multiple opportunities. The original assessment by the AO under section 144 of the Income Tax Act included an addition of unexplained cash deposits amounting to Rs. 31.71 lakhs during the demonetization period, under section 69A of the Act. The ITAT, considering the principles of natural justice, decided to remand the case back to the AO, providing the assessee another chance to substantiate his claims.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133999 (ITAT-CHENNAI)
• Duration Of Justice: 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 144; 69A

Judgement Text

आयकर अपीलीय अिधकरण ‘सी/ एस एम सी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘C/SMC’ BENCH, CHENNAI माननीय .ी मनोज कु मार अ2वाल ,लेखा सद6 के सम7। BEFORE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.87/Chny/2023 (िनधा=रण वष= / Assessment Year: 2017-18) Elapalayam Muthusamy Gounder Palanisamy 141, Kulaithu Palayam, Marri Kattu Thottam, Gangapuram, Erode – 638 102. बनाम/ V s. ITO Ward-2(1), Erode. थायी लेखा सं./जीआइ आर सं./P AN /GI R No . BNE P P -7 8 8 8 -M (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri S. Sridhar (Advocate)– Ld. AR थ की ओरसे/Respondent by : Shri Sanat Kumar Raha (Addl. CIT)-Ld. DR सुनवाई की तारीख/Date of Hearing : 21-02-2023 घोषणा की तारीख /Date of Pronouncement : 21-02-2023 आदेश / O R D E R 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 28-11-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.144 of the Act on 16-12-2019. 2. The Ld. AR, at the outset, pleaded for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR. Upon perusal of case records, it could be seen that the assessee has been assessed u/s. 144 of the Act on 16-12-2019 wherein it was saddled with addition of unexplained cash u/s. 69A of the Act for ITA No.87/Chny/2023 - 2 - Rs.31.71 Lacs being cash deposits during demonetization period. Though the assessee preferred further appeal before Ld. CIT(A), however, it failed to make any submissions despite various opportunities as noted by Ld. CIT(A) in para 3 of the impugned order. Accordingly, the appeal was dismissed. Aggrieved, the assessee is in further appeal before me. 3. I find that though the assessee has remained negligent in attending the first appellate proceedings, however, keeping in mind the principle of natural justice, I deem it fit to prove another opportunity of hearing to the assessee. Therefore, the assessment stand restored back to the file of Ld. AO for de novo adjudication with a direction to the assessee to substantiate his stand failing which Ld. AO shall be at liberty to proceed with adjudication on the basis of material on record. 4. The appeal stand allowed for statistical purposes. Order pronounced on 21 st February, 2023. Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद6 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 21 -02-2023 EDN/- आदेश की Qितिलिप अ 2ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु /CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF