LAKSHMI MUTHURAMAN,CHENNAI V. .DCIT, CENTRAL CIRCLE.2(4), CHENNAI

ITA 2727/CHNY/2024

AI Insights

The case involves an appeal by Lakshmi Muthuraman against the order of the Commissioner of Income Tax (Appeals)-19, Chennai, which upheld the additions made by the Assessing Officer under sections 69A and 143(3) of the Income-tax Act, 1961. The additions included a cash deposit during the demonetization period amounting to Rs. 1,40,50,000 and other business income of Rs. 62,38,716. The CIT(A) had passed an ex-parte order due to the non-response of the assessee to multiple notices. The assessee, represented by Shri Vishwa Padmanabhan, C.A, argued that she did not receive the notices, while the Departmental Representative supported the lower authorities' decisions.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107254 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: VISHWA PADMANABHAN; C.A
• Keywords: Principle of natural justice; Non compliance
• Section: 143(3); 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2727/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2017-18 Lakshmi Muthuraman, 45/21, Poes Garden, Teynampet, Chennai-600086. Vs. The Dy. Commissioner of Income Tax, Central Circle-2(4), Chennai. [PAN: CQJPM 2598C] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri Vishwa Padmanabhan, C.A HIथF की ओर से /Respondent by : Ms. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 18.12.2024 घोषणा की ता रीख /Date of Pronouncement : 20.12.2024 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 (Appeal)-19, Chennai [hereinafter “CIT(A)”] dated 28.08.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 23.12.2019. ITA No.2727/Chny/2024 :- 2 -: 2. The assessee has filed return of income admitting total income of Rs. 40,99,810/- on 21.03.2018. The A.O in the order passed u/s. 143(3) of the Act has made the addition cash deposit during demonetization period u/s. 69A of the Act of Rs. 1,40,5,000/- and other addition under the head “business” of Rs.62,38,716/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) issued notices 6 notices from 26.09.2023 to 20.06.2024, but the assessee has not made any response to notices. The Ld. CIT(A) therefore, passed ex-parte by upholding the addition. 3. The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the assessee could not comply to the notices issued as the assessee has not received any communication. The Ld. AR has prayed that huge addition been made in ex parte manner so one more opportunity be provided to the assessee in the interests of justice. 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities and argued that assessee has been non compliant and therefore appeal be dismissed. ITA No.2727/Chny/2024 :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. We find that the Ld. CIT(A) has confirmed the addition of cash deposit during demonetization period of Rs.1,40,50,000/-, us/. 69A of the Act and addition under the head “business” of Rs.62,38,716/- in the ex-parte order passed as the assessee has not complied with the notices issued. The Ld. A.R has submitted that they have not received any notices and requested that one more opportunity may be given in the interests of justice. 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) 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 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 and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. ITA No.2727/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th December, 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, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "