JAYABALAN KUMARESAN,TIRUVANNAMALAI V. ITO, WARD-1, TIRUVANNAMALAI

ITA 608/CHNY/2025

AI Insights

The case involves an appeal by Jayabalan Kumaresan against the order of the Learned Commissioner of Income Tax (CIT(A)), which confirmed additions made by the Assessing Officer (AO) under sections 147 and 144B of the Income-tax Act, 1961. The additions pertained to Rs. 22,64,000 received from the sale of gold and Rs. 35,54,200 received as a gift. The CIT(A) had passed an ex-parte order due to non-compliance from the assessee with multiple notices. The Tribunal, considering the principles of natural justice, decided to provide another opportunity to the assessee to present his case, emphasizing the need for fair hearing procedures.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312879 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.P. GURUPRASAD
• Assessee Lawyers: M. KARUNAKARAN
• Keywords: Set aside; Opportunity of being heard; Gift; Principle of natural justice
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.608/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2018-19 Jayabalan Kumaresan, 217, Thanipadi and Post, Piliyar Koil Street, Tiruvannamalai – 606 708. Vs. The Income Tax Officer, Ward-1, Tiruvannamalai. [PAN: DNOPK 0993L] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri M. Karunakaran, Advocate IJथG की ओर से /Respondent by : Shri M.P.Guruprasad, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 21.01.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) dated 16.03.2023. . ITA No.608/Chny/2025 :- 2 -: 2. In the assessment order passed u/s. 147 r.w.s 144B of the Act, the A.O has made addition Rs. 22,64,000/- on account of cash received from the sale of gold and Rs. 35,54,200/- on account of cash received as a gift. Aggrieved by the additions, the assessee filed an appeal before the Ld. CIT(A). During the appellate proceedings, the Ld. CIT(A) issued four notices from 09.12.2024 to 07.01.2025. However, there was no compliance from the assessee. Consequently, in the absence of any representation or submissions from the assessee, the Ld. CIT(A) passed an ex-parte order and confirmed the additions made by the A.O. 3. At the outset, the Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) has issued multiple notices in a short span of time and dismissed the appeal ex-parte and therefore, it is requested that, in the interests of justice, one more opportunity be provided to the assessee. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. It is noted that the A.O has made addition of Rs.58,18,200/- on account of cash received from gold sales and on ITA No.608/Chny/2025 :- 3 -: account of cash received as gift. It is further noted that the assessee did not appear before the Ld. CIT(A), resulting in the dismissal of the appeal without hearing. However, before us, the Ld. AR has contended that adequate opportunity was not granted by the Ld. CIT(A) to substantiate his case. In the interest of justice and considering principles of natural justice, we are of the view that the assessee should be given with another opportunity of hearing to substantiate his case before the Ld. CIT(A) subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter to his file to decide the issue afresh, after affording the assessee due opportunity of being heard, in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.608/Chny/2025 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th April, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "