KATHIRVEL ,NAMAKKAL V. ITO, WARD-2, NAMAKKAL

ITA 1077/CHNY/2025

AI Insights

The case involves an appeal by Kathirvel against the orders of the Assessing Officer and the CIT(A), which were passed ex-parte under section 144 of the Income-tax Act, 1961. The appeal was delayed by 473 days, attributed to a real-time alert that prevented timely action. The Tribunal condoned the delay, considering the circumstances. The main issues in the appeal were the ex-parte nature of the assessment and the non-compliance with notices, which led to additions of cash deposits and estimates of business income. The Tribunal emphasized the principles of natural justice and granted another opportunity for the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708553 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Keywords: Set aside; Business income; Principle of natural justice
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \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.1077/Chny/2025 िनधा9रण वष9 /Assessment Year: 2017-18 Kathirvel, 226, Santhi Nagar, Pothanur, Paramathi Velur, Namakkal – 638 181. Vs. The Income Tax Officer, Ward-2, Namakkal. [PAN: AKHPK 2226K] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri T.S.Lakshmi Venkataraman, FCA GHथ की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 15.07.2025 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 (NFAC), Delhi [hereinafter “CIT(A)”] dated 31.10.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 27.09.2019. ITA No.1077/Chny/2025 Kathirvel :- 2 -: 2. There is a delay of 473 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons that the delay was primarily caused due to a real-time alert, which prevented timely action on the matter. We have considered the petition/affidavit 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. At the outset, the Ld. Authorized Representative submitted that the assessment order in this case has been passed ex-parte u/s 144 and the Ld. CIT(A) has also dismissed the appeal ex-parte, therefore one more opportunity be granted to the assessee to substantiate his case before the A.O. 4. On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex-parte as the assessee has been non-compliance with the notices issued. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find ITA No.1077/Chny/2025 Kathirvel :- 3 -: that the Ld. CIT(A) has confirmed the additions made by the A.O of cash deposits of Rs.10,62,000/- u/s. 69A of the Act, and estimate of business income of Rs. 72,292/-, due to the non-compliance of the notices issued. The assessment order has also been passed ex-parte. In our considered opinion, and keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O subject to payment of costs of Rs.5,000/-. 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 A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.1077/Chny/2025 Kathirvel :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 15th day of July, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 15th July, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "