KUTHETHUR KALYANI DAS,CHENNAI V. ITO, NCW-3(4), CHENNAI

ITA 783/CHNY/2025

AI Insights

The case involves an appeal by Kuthethur Kalyani Das against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, for the assessment year 2012-13. The primary contention was the addition of short-term capital gains amounting to Rs. 4,75,10,143 by altering the cost of acquisition, which was upheld by the CIT(A) due to the assessee's non-compliance. The assessee, represented by Shri D. Anand, Advocate, argued that the non-compliance was due to personal matters and sought another opportunity to comply fully. The Departmental Representative supported the lower authorities' decision. The Tribunal noted the assessee's lack of knowledge and non-prosecution but decided to remit the case back to the Assessing Officer for a detailed examination, citing the importance of the Assessing Officer's role in the assessment proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653051 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: D.ANAND
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences; Cost of acquisition; Capital Gains

Judgement Text

" आयकर अपीलीय अधिकरण, ’सी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI श्री यस यस विश्वनेत्र रवि, न्यावयक सदस्य एवं श्री अविताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.783/Chny/2025 Assessment Years: 2012-13 Kuthethur Kalyani Das, 1b, Anu Apts, No.69 C Spurtank Road, Chetpet, Chennai-600 031. [PAN: BUIPK5930L] Income Tax Officer, Non-Corporate Ward-3(4), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri D.Anand, Advocate, प्रत्यर्थी की ओर से /Revenue by : Ms.Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 05.06.2025 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 / 1073627293(1) dated 24.02.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2012-13. 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.783/Chny/2025 Page - 2 - of 4 2.0 At the outset, the Ld. Counsel for the assessee submitted that the Ld.AO has made an addition of short time capital gains of Rs.4,75,10,143/- by disturbing the cost of acquisition in the hands of assessee. The Ld. Counsel submitted that the Ld. CIT(A) has also confirmed the order of the Ld.AO on the premise of non-compliance by the assessee. The Ld. Counsel however pleaded that its non- compliances before the Ld. CIT(A) may be excused as the assessee was preoccupied with some personal matters and that now full compliance would made if an opportunity of being heard is given. 3.0 Per contra, the Ld. DR relied upon the order of lower authorities. 4.0 We have heard the rival submissions in the light of material available on records. The non-compliance of the assessee before the lower authorities is evident. However, before us the assessee has pleaded through an affidavit that the notices were issued by the Ld. CIT(A) through online mechanism and assessee’s lack of knowledge primarily contributed to the non-compliance. It has been deposed that the assessee shall now make full compliance before the Revenue authorities. We are conscious that no litigant benefits by non-prosecution of its case. We have noted that the Ld.AO has made the impugned addition by, inter- alia, observing para 11 of his order regarding non-submission of documentary evidences by the assessee. Be that as it may be, we are of the view that the issues have not been objectively and ITA No.783/Chny/2025 Page - 3 - of 4 comprehensively analyzed by the lower authorities. We are of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and filed 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. 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 matter 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 the 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 shall be adversely viewed. The assessee is at liberty to produce all the evidences alluded before us including any other evidences deemed relevant in support of its claims before the Ld. AO during the readjudication proceedings. Accordingly, all the grounds of appeal raised by the assessee are therefore allowed for statistical purposes. This order is however subject to payment of cost of Rs.2,000/-(Rupees two thousands onluy) by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High ITA No.783/Chny/2025 Page - 4 - of 4 Court of Madras within 30 days of the receipt of this order. Accordingly, all the grounds raised by the assessee are allowed for statistical purposes. 8.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on , June-2025 at Chennai. (यस यस धवश्वनेत्र रधव) (SS VISWANETHRA RAVI) 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 "