KARUPANNA GOUNDER NATARAJAN,NAMAKKAL V. ITO, WARD-2, NAMAKKAL

ITA 3160/CHNY/2024

AI Insights

The case involves Karupanna Gounder Natarajan, an individual engaged in the poultry farm business, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issue arose from the Assessing Officer's (A.O) addition of Rs. 15,02,500 to the assessee's income, which was allegedly deposited in cash during the demonetization period. The A.O passed an ex-parte order due to non-compliance with notices, and the CIT(A) upheld this without discussion. The Tribunal found that proper opportunities were not given to the assessee by the lower authorities and thus decided to remit the matter back to the A.O for a fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107162 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Section: 148; 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी एस. आर. रघुना था , लेखा सद+ क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3160/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2017-18 Karupanna Gounder Natarajan, No.515/W, Jangamanaickanpatty, Villiplayam Post, Paramathi Velur, Namakkal – 637 207. [PAN: AEBPN 9177Q] Vs. The Income Tax Officer, Ward-2, Namakkal. (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थI की ओर से/ Appellant by : Shri T.S. Lakshmi Venkataraman, FCA KLथI की ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवा ई की ता रीख/Date of Hearing : 18.02.2025 घोषणा की ता रीख /Date of Pronouncement : 21.02.2025 आदेश / O R D E R PER S.R. RAGHUNATHA, A.M : This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter “CIT(A)”] for the assessment year 2017-18, vide order dated 06.06.2024. 2. There is a delay of 103 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the ITA No.3160/Chny/2024 :- 2 -: reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The brief facts of the case are that the assessee is an individual, engaged in the Poultry Farm business. The assessee has filed return of income on 31.10.2017, admitting total income of Rs. 4,98,910/-. During the course of assessment proceedings, the A.O found that the assessee had deposited cash of Rs.61,02,210/- in his savings bank account maintained with Canara Bank, Namakkal during demonetization period. The A.O therefore issued a notice to the assessee u/s. 148 of the Act. However, the assessee did not comply with the notices issued during the assessment proceedings. Upon perusal of bank statement, the A.O found that the assessee had deposited SBN notes of Rs. 8,77,500/- up to 11.11.2016 is reasonable which correlated with the cash balance of the assessee as on 07.11.2016. However, the assessee had deposited the SBN notes of Rs.15,02,500/- after 11.11.2016, which was not acceptable. The AO, therefore, passed an ex-parte order dated 29.09.2021 by making an addition of Rs. 15,02,500/- u/s. 69A of the Act, assessing total income of Rs. 20,01,410/-. Aggrieved, the assessee preferred an appeal ITA No.3160/Chny/2024 :- 3 -: before the Ld. CIT(A). On appeal, the Ld. CIT(A) issued notices from 16.03.2024 to 27.05.2024, but there was no compliance for the notices by the assessee. Therefore, the Ld. CIT(A) also dismissed the appeal of the assessee ex-parte by passing an order dated 06.06.2024. 4. The Ld. Counsel for the assessee prayed for setting aside the order of the Assessing Officer for re-adjudication, since the case was not prosecuted before the Assessing Officer and the same has been confirmed by the Ld. CIT(A) without any discussion. 5. Per contra, the Ld. DR relied on the orders of the lower authorities and prayed for confirming the impugned order. 6. We have heard both the parties and gone through the order of the lower authorities below. It is noted that the AO and that of the Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. Therefore, to meet the ends of justice by providing one more opportunity to the assessee, we remit the matter back to the file of the AO for denovo adjudication. We also direct the assessee to appear before the AO and at liberty to submit the relevant details before the AO for adjudication of the case. ITA No.3160/Chny/2024 :- 4 -: 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 21st February, 2025. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा\u001e\u001f / Vice President (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 21st February, 2025. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "