KULANDAIYAPPAN CHINNURAMAKRISHNAN,CHENNAI V. ITO, NCW-3(3), TIRUPPUR

ITA 2255/CHNY/2024

AI Insights

The case involves an appeal by Kulandaiyappan Chinnuramakrishnan against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2017-18. The primary contention was the addition of Rs. 17,50,000 as unexplained cash deposits during the demonetization period. The First Appellate Authority had dismissed the appeal due to the assessee's non-appearance, which was attributed to his health issues post-COVID-19. The Tribunal found merit in the assessee's plea for a fair hearing and directed the case to be re-evaluated, ensuring the assessee is given a proper opportunity to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298668 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 27-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHINTHAPALLI MEHER CHAND
• Assessee Lawyers: S.SATHYANARAYANAN
• Keywords: Set aside; Opportunity of being heard
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.2255 /Chny/2024 निर्ाारण वर्ा /Assessment Years: 2017-18 Kulandaiyappan Chinnuramakrishnan C/o. M/s.S.Sathiyanarayanan, Advocates, F1, PRP Block – Rose Park, No.10 Santhi Nagar, 1st Cross Adambakkam, Chennai-600 088. [PAN: ARUPC4515F] Income Tax Officer, Non-Corp Ward-3(3), Coimbatore (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Shri S.Sathyanarayanan, Advocate प्रत्यर्थी की ओर से /Respondent by : Mr.Chinthapalli Meher Chand, JCIT सुिवाई की तारीख/Date of Hearing : 22.10.2024 घोर्णा की तारीख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1060794200(1) dated 12.02.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017- 18. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 12.02.2024 passed by NFAC, Delhi. ITA No.2255 /Chny/2024 :- 2 -: 2.0 It has been noted that there is a delay of 137 days in filing of this appeal before the tribunal. In its affidavit the assesse has pleaded that it is suffering from various illness post Covid-19, and could not file the appeal in time. We have considered the justification put forth by the assesse and we are satisfied with their adequacy. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 143(3) dated 20.12.2019 and that the appeal was dismissed on account of non-appearance. The Ld. AO had made an addition of Rs.17,50,000/- on account of unexplained cash deposits made during demonetization period. Before the Ld. First Appellate Authority the assesse filed appeal with statement of facts and accompanying documents. The Ld. CIT(A) however chose to dismiss the appeal on the premise on non-appearance. The Ld. Counsel for the assesse pleaded that the assesse has been denied reasonable opportunity of being heard. It was submitted that the assesse is 75 year old man having several health issues and hence could not make effective timely coordination with the chartered account leading to delay in filing of appeal and also deficient compliance before the Ld. CIT(A). It was accordingly prayed that one more chance be accorded and the matter ITA No.2255 /Chny/2024 :- 3 -: may be considered for restoration to Ld. CIT(A) for fresh adjudication. The Ld. Counsel for the assesse assured that full compliance would made now. The Ld. DR proposed that cost may be levied upon the assesse. 4.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non- prosecution of its case. We find sufficient force in the pleadings of the assesse as to why it could not prosecute its case. We have also noted that apart from merely harping on the issue of non-appearance by the assesse the Ld. CIT(A) has not touched upon merits of the case. 5.0 We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. CIT(A) for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. He will be at liberty to call for any remand report from the Ld. AO if warranted by the facts of the case. The assesse shall be bound to comply to all the notices and details called by the Ld. CIT(A). Any non- compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. First Appellate Authority and direct him to readjudicate the matter de novo. Accordingly, the ITA No.2255 /Chny/2024 :- 4 -: grounds of appeal raised by the assesse are allowed for statistical purposes. 6.0 In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 8th , November-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 8th , November-2024. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Coimbatore 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "