K C SELVAM HUF, ERODE,ERODE V. THE INCOME TAX OFFICER, WARD 2(1), ERODE, ERODE

ITA 1842/CHNY/2025

AI Insights

The case involves K.C. Selvam, HUF, the appellant, who appealed against the order of the CIT(A) which had dismissed their appeal ex-parte due to non-response to notices. The original assessment was reopened under section 148 of the Income Tax Act, leading to a reassessed income of Rs. 1,07,09,387 against a declared nil income for the assessment year 2013-14. The Tribunal, considering the principles of natural justice, decided to grant the assessee another opportunity to present their case, despite some concurrence with the respondent's position to uphold the CIT(A)'s decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772739 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2013-2014
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEERAMANY.K.; IRS
• Assessee Lawyers: R.S.LAKSHMI NARAYANAN
• Keywords: Set aside; Principle of natural justice
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1842/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2013-14 K.C.Selvam, HUF, 10, Kadapalayam, Perundurai, Erode-638 052. v. The ITO, Ward-2(1), Erode. [PAN: AAIHK 1772 K] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.R.S. Lakshmi Narayanan, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Veeramany.K., IRS सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 19.07.2024 for Assessment Year 2013-14. 2. The brief facts of the case are that the assessee is a Hindu Undivided family. The assessee’s case was reopened for income escaping assessment and a notice was issued u/s. 148 of the Act on 04.11.2019. The AO computed the total assessed income at Rs.1,07,09,387/- against Nil income declared. The ld. CIT(A) dismissed the appeal ex-parte as Printed from counselvise.com ITA No.1842/Chny/2025 (AY 2013-14) K.C.Selvam, HUF :: 2 :: there was no response to the notices issued for hearing and filing submission. 3. Aggrieved, assessee is in appeal before us. 4. Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 5. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the AO for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law. Legal issues are open. The Printed from counselvise.com ITA No.1842/Chny/2025 (AY 2013-14) K.C.Selvam, HUF :: 3 :: ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "