KUMMATHUR BALASUBRAMANIAN PRABHAKARAN,ERODE V. ITO, WARD 2(1)-, ERODE, CHENNAI

ITA 2181/CHNY/2024

AI Insights

The case involves Kunnathur Balasumbramaniam Prabhakaran, the appellant, who appealed against the order of the CIT(A) confirming the addition of Rs. 34,33,000 to his income, which was allegedly deposited in his savings account. The Income Tax Officer (ITO) had reopened the assessment under section 148 of the Income Tax Act, 1961, based on the information of a substantial cash deposit. The appellant claimed the deposits were gifts and loans, which the ITO did not accept due to lack of supporting documents. The CIT(A) confirmed the addition ex-parte, leading to the current appeal. The Tribunal found that the CIT(A) had not decided the case on merits and thus remanded the case back for a fresh hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107281 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-10-2024
• Assessment Year: 2013-2014
• Appeal Filed On: 19-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: S. BHUPENDRAN
• Keywords: Set aside; Gift; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी महा वीर िसंह, उपा \u001f एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2181/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2013-14 Kunnathur Balasumbramaniam Prabhakaran, 5, Venugopalaswamy Koil Street, Sathyamangalam, Erode – 638 401. [PAN: BVWPP 5001J] Vs. The Income Tax Officer, Ward-2(1), Erode. (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri S. Bhupendran, Advocate HIथF की ओर से /Respondent by : Ms. R. Anita, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 21.10.2024 घोषणा की ता रीख /Date of Pronouncement : 21.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 15.06.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.147 r.w.s 143(3) of the Income Tax Act, 1961 (hereinafter “the Act”) on 25.12.2019. ITA No.2181/Chny/2024 :- 2 -: 2. There is a delay of 05 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the 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 condoned accordingly. 3. The only ground pressed by the assessee is against confirming the order of A.O of addition on cash deposit of Rs. 38,70,000/- in the saving bank account. 4. The assessee is an individual and has not filed return of income. The A.O based on the information that the assessee has made a cash deposit of Rs. 38,70,000/- in his saving bank account with Axis Bank, Sathy Erode, but has not filed return of income reopened the assessment by issuing notice u/s 148. The assessee before the A.O explained the source of cash deposit of Rs.38,70,000/- as gift received from father of Rs. 15,00,000/- and loans given and received back of Rs. 12,00,000/- from Shri M. Nandagopal and Rs. 7,30,000/- from Shri S. Periasamy Gounder. The A.O has not accepted the explanation as the assessee has not submitted any documents in support of networth of his father or any evidence regarding loan repayment and made ITA No.2181/Chny/2024 :- 3 -: addition of Rs. 34,33,000/-. The Ld. CIT(A) has confirmed the addition ex-parte. 5. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the Ld. CIT(A) has dismissed the appeal without deciding case on merit in the ex-parte order and the assessee has sufficient evidence to prove the source of cash deposit therefore, the case may be remanded back for fresh adjudication in the interest of justice. 6. The Ld. Departmental Representative (DR), on the other hand, has submitted that the assessee has been non-complied and therefore, appeal may be dismissed. 7. 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 that the order has been passed by Ld. CIT(A) ex-parte confirming the addition of cash deposit of Rs. 34,33,000/- in assessee’s saving bank account . The Ld CIT(A) has not decided the case on merit and dismissed the appeal. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and ITA No.2181/Chny/2024 :- 4 -: remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the Assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st October, 2024. Sd/- Sd/- (महा वीर िसंह) (Mahavir Singh) उपा \u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 21st October, 2024. 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, Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "