KUMARAVEL NESAMURUGAN,VILLUPURAM V. ITO, WARD-1, VILLUPURAM

ITA 878/CHNY/2025

AI Insights

The case involves an appeal by Kumaravel Nesamurugan against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2018-19. The primary issue was the unexplained cash deposits in the assessee's bank accounts totaling Rs.15,86,26,258. The assessee failed to comply with statutory notices due to personal difficulties, leading to ex-parte orders from the lower authorities. The Tribunal, acknowledging the non-compliance but also the need for a thorough examination of the facts, decided to remit the matter back to the AO for a detailed and objective analysis.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653066 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN MARY BABY
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Set aside; Corroborative evidences
• Section: 147; 148

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.878/Chny/2025 Assessment Years: 2018-19 Kumaravel Nesamurugan, No.24, College Road, Kilperumbakkam S.O, Viluppuram, Tamil Nadu 605 602. [PAN: APRPN1956J] Income Tax Officer, Ward-1, Villupuram (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Mr.S.Sridhar, Advocate(Erode), प्रत्यर्थी की ओर से /Revenue by : Ms.Ann Mary Baby, CIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : .06.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1072585047(1) dated 27.01.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2018-19. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. ITA No. 878 /Chny/2025 Page - 2 - of 4 2.0 At the outset the Ld.Counsel for the assessee submitted that admittedly, owing to compelling personal difficulties, it could not make timely compliance to the statutory notices issued by the Ld.AO as well as the Ld.CIT(A) as a result of which ex-parte orders were passed by the twin authorities. It was accordingly requested that the assessee has all the details and evidences in its possession to prove its bona-fides before the Ld.AO and that one last opportunity be kindly be granted. The Ld.Counsel for the assessee has given his personal assurance of compliance to the statutory notices to be now issued by lower authorities. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was argued that the assessee was given sufficient opportunities by the lower authorities to explain the sources of cash deposits in its bank accounts of Rs.15,86,26,258/- qua proceedings u/s 147 / 148 and therefore no leniency deserves to be given to the assessee. 4.0 We have heard rival submissions in the light of material available on records. The non -compliance by the appellant assessee is evident from the order of lower authorities. The Ld.AR has personally assured full compliance now. We are conscious that no litigant benefits by not prosecuting its case. Be that as it may be, we are of the view that the matter concerning sources of unexplained cash deposits in the bank account of the assessee have not been objectively and comprehensively analyzed by the lower authorities. We are of the view that ends of justice ITA No. 878 /Chny/2025 Page - 3 - of 4 would be met if the assessee is given one last opportunity to present its case and file supporting evidences before the Ld.AO. The decision to remit it back to the Ld. AO is taken in view of the fact that an Assessing Officer is the fulcrum of assessment proceedings. He possess the first right and responsibilities to examine facts of a case before arriving at his decision qua determination of taxable income in a particular case. Without prejudice it has also been noted that in this case the Ld. AO did not have adequate opportunities to examine the varied facts seminal therein. We have noted with respectful deference the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216 on the subject matter. Accordingly, the issue of sources of cash deposits received by the assessee in its bank accounts amounting to Rs.15,86,26,258/- upon which even amount of addition was made stands remitted back to the Ld. AO for fresh adjudication de novo by passing a speaking order. To the extent the order of lower authorities on this issue stands set aside. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non-compliance on the part of the assesse can be adversely viewed. The assessee is at liberty to produce all the evidences deemed relevant in support of its claims before the Ld. AO during the readjudication proceedings. Accordingly, the grounds of appeal raised by the assessee are therefore allowed for statistical purposes. ITA No. 878 /Chny/2025 Page - 4 - of 4 5.0 In the result, the appeal of the assessee is allowed. Order pronounced on , June-2025 at Chennai. (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "