K. ADIRAJAN,CHENNAI V. ITO, NCW-4(1), CHENNAI

ITA 2316/CHNY/2024

AI Insights

The case involves an appeal by K. Adirajan against the order of the Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition of Rs. 33,00,000 as unexplained cash deposits under section 69 of the Income-tax Act, 1961. The assessee had deposited this amount in his savings account and explained that a significant portion belonged to his wife and daughters. The Assessing Officer (AO) rejected this explanation, leading to the addition. The CIT(A) dismissed the appeal ex-parte, not discussing the merits of the case. The Tribunal found this approach inconsistent with the statutory requirements and the principles of natural justice, leading to the decision to remit the case back for a fresh adjudication.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107043 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 20-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 03-09-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G. SARATHA
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001e, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2316/Chny/2024 िनधा:रण वष: /Assessment Year: 2017-18 K. Adirajan, New No.19, Old No.35, Ramanuja Iyer Street, Old Washermenpet, Chennai – 600 021. Vs. The Income Tax Officer, Non Corporate Ward-4(1), Chennai. [PAN: AAIPR 6303D] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : None IJथ\u001e की ओर से /Respondent by : Mrs. G. Saratha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 20.11.2024 घोषणा की तारीख /Date of Pronouncement : 04.12.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.06.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 14.12.2019. ITA No.2316/Chny/2024 :- 2 -: 2. When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. D.R. 3. The only effective ground of appeal in this appeal of assessee is against the order of Ld. CIT(A) passing ex-parte order in confirming the addition on cash deposits of Rs. 33,00,000/- u/s. 69 of the Act without giving adequate opportunity of being heard. 4. The assessee is an individual and has deposited cash of Rs.33,00,000/- in his saving bank account with Central Bank of India, Washermenpet Branch, Chennai. The assessee has explained the source of cash deposit as Rs. 29,00,000/- belonging to his wife and daughters and Rs. 4,00,000/- savings of his own . The assessee further explained that he has given five challans in the name of K. Adhirajan Rs. 4,00,000/-, R. Shanthi Rs. 8,00,000/-, R. Jeeva Rs. 7,00,000/-, R. Mahalakshmi Rs. 8,00,000/- & R. Devi Rs. 6,00,000/- to the Manager of Central Bank of India, Washermenpet Branch, Chennai to be deposited in their respective account, but the bank Manager had deposited in his account only. The A.O has not accepted the explanation as the return of income of his wife and daughters were ITA No.2316/Chny/2024 :- 3 -: not sufficient to explain the cash deposit and made the addition. On appeal, the Ld. CIT(A) passed ex-parte order without discussing the merits of the case. The Ld. CIT(A) has dismissed the appeal holding that the assessee is not interested in completing the appeal proceedings and therefore, appeal is dismissed. 5. We have perused the materials available on record and find that the orders of Ld. CIT(A) is ex-parte without discussing the issue on merits which is not in consonance to section 250(6) of the Act. As per Section 250(6) of the Act, the Ld. CIT(A) is required to adjudicate the issue arising in the appeal on merit by stating the points for determination the decision thereon and the reason for the decision. We are of the opinion that keeping in view of the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh 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. ITA No.2316/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 04th December, 2024. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 04th December, 2024. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "