KAILASHKUMAR JAIN,CHENNAI V. ITO, NCW-5(1), CHENNAI

ITA 2070/CHNY/2025

AI Insights

The case involves Kailashkumar Jain, an individual engaged in financing business, who did not file his income tax return for the assessment year 2017-18. During the demonetization period, significant cash deposits were made into his bank accounts, which led to scrutiny by the Income Tax Department. The Assessing Officer added substantial amounts as income from interest and commission, and as undisclosed investment under sections 69 and 144 of the Income Tax Act. Jain's appeal to the CIT(A) was dismissed due to non-participation. The Tribunal found that the Assessing Officer had not adequately considered the information provided by Jain and thus remitted the case back for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 779420 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 28-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Keywords: Condonation of delay; Set aside; Reasonable cause

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सीʼ \u0011ा यपीठ, चे\u0016ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI \u0018ी मनु क ुमा र िग र, \u0011ा ियक सद एवं \u0018ी एस. आर. रघुना था , लेखा सद क े सम' BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2070/Chny/2025 िनधा (रण वष( / Assessment Year: 2017-18 Kailashkumar Jain, No.46, Nambaulair Street, Chennai – 600 079. Tamil Nadu. vs. Income Tax Officer, Non-Corp Ward-5(1) Chennai. [PAN: ABSPK-9206-D] (अपीला थ*/Appellant) (+,थ*/Respondent) अपीला थ* की ओर से/Appellant by : None +,थ* की ओर से/Respondent by : Ms. Anitha, Addl. CIT. सुनवा ई की ता रीख/Date of Hearing : 17.09.2025 घोषणा की ता रीख/Date of Pronouncement : 13.10.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal by the assessee is filed against the order of the learned Commissioner of Income Tax (Appeal), NFAC, Delhi, (in short Ld. CIT(A)) for the assessment year 2017-18, vide order dated 24.02.2025. 2. At the outset, we find that there is a delay of 89 days in appeal filed by the assessee, for which petition for condonation of delay is not filed with reasons. We note that no one appeared before us to represent the assessee’s appeal. After considering the appeal filed by the assessee and also hearing the ld.DR, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the Printed from counselvise.com :-2-: ITA. No:2070/Chny/2025 interest of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication. 3. Brief facts of the case are that the assessee is an individual and engaged in business of financing both by providing his own funds and also arranging funds from other investors in the market and had not filed his return of income u/s.139(1) of the Act for the A.Y.2017-18. As per information available with the department, the assessee made cash deposits to the tune of Rs.14,52,000/- into his bank account maintained with Indusind Bank, Nungambakkam Branch and Kotak Mahindra Bank during the demonetization period from 09.11.2016 to 31.12.2016. The case was selected for scrutiny and statutory notices were issued to the assessee and assessee filed the details called for. In response to the notices, the assessee appeared and furnished the documents during the assessment proceedings. On perusal of the documents, the Assessing Officer found that business of the assessee does not come under the exempted category as notified by the RBI and the assessee was not allowed to receive the SBNs for doing the monetary transactions and enter the same into his books of account. Since, the assessee is not able to furnish a valid reply of depositing SBN, the AO made an addition of Rs.21,66,825/- as income from interest and commission and Rs.10,02,000/- as undisclosed investment u/s.69 of the Act and concluded the assessment u/s.144 of the Act dated 21.12.2019. 4. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC on 19.02.2020. 5. At the outset, we observed that the Ld.CIT(A) has provided four opportunities to the assessee to appear for hearings as detailed in paragraph 4 of the CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld. CIT(A) dismissed the appeal of the assessee by confirming the order of Assessing Officer dated 24.02.2025. Printed from counselvise.com :-3-: ITA. No:2070/Chny/2025 6. Aggrieved by the order of ld.CIT(A), the assessee has filed an appeal before us. We note that the none appeared before us for representing the assessee’s appeal. 7. Per contra, the ld.DR supported the order of lower authorities. 8. We have heard the ld.DR and perused the material available on record and gone through the orders of the lower authorities. We note that the Assessing Officer has passed an order without considering the information submitted by the assessee and the same has been dismissed by the ld.CIT(A), NFAC, Delhi due to non-participation of the assessee before the first appellate authority. 9. In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO by giving one more opportunity to the assessee to explain the transactions and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so. 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 13th October, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0011ाियक सद /JUDICIAL MEMBER (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद /ACCOUNTANT MEMBER Printed from counselvise.com :-4-: ITA. No:2070/Chny/2025 चे\u0016ई/Chennai, िदनांक/Dated, the 13th October, 2025 jk आदेश की +ितिलिप अ3ेिषत/Copy to: 1. अपीलाथ*/Appellant 2. +,थ*/Respondent 3.आयकर आयु5/CIT– Chennai/Coimbatore/Madurai/Salem 4. िवभागीय +ितिनिध/DR 5. गाड( फाईल/GF Printed from counselvise.com "