LATE SHRI MUTHUVEL KALATHADI MUTHU, L/H. SMT. KARPAGAVALLI,CHENNAI V. ITO, NCW-22(2), TAMBARAM

SA 55/CHNY/2025

AI Insights

The case involves an appeal by the legal heir of the late Shri Muthuvel Kalathadi Muthu against the order of the Commissioner of Income Tax (Appeals), which was passed under section 250 of the Income Tax Act, 1961. The appeal was delayed by 536 days due to the unawareness of the assessee's wife about the ongoing tax proceedings, which she only discovered after receiving a call from the AO regarding an outstanding demand. The tribunal found sufficient reasons for the delay and condoned it, proceeding to address the appeal on its merits. The tribunal noted that both the AO and the CIT(A)'s proceedings were ex-parte as there was no compliance from the assessee to the notices issued. Given the circumstances, the tribunal decided to restore the matter to the AO for a fresh assessment, emphasizing the need for justice and fair play.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633480 (ITAT-CHENNAI)
• Appeal Type: Stay Application
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SITA KRISHNAMOORTHY
• Assessee Lawyers: VISHWA PADMANABHAN
• Keywords: Principle of natural justice

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘ए’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:1363/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2017-18 & SA No.55/CHNY/2025 [in ITA No.1363/CHNY/2025] Late Shri Muthuvel Kalathadi Muthu, Rep. by Legal Heir Smt. Karpagavalli, No.3/138, Sairam Nagar, 1st Cross Street, Medavakkam, Chennai – 600 100. PAN: AYCPK 6083H Vs. The Income Tax Officer, Non-Corporate Ward 22(2), Tambaram. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Vishwa Padmanabhan, CA ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Sita Krishnamoorthy, JCIT सुनवाई कᳱ तारीख/Date of Hearing : 11.06.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 11.06.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National - 2 - ITA No.1363/CHNY/2025 & SA No.55/CHNY/2025 Faceless Appeal Centre, Delhi dated 13.09.2023, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. 2. There is a delay of 536 days in filing this appeal. The Legal heir and wife of the assessee has filed a condonation petition supported by the affidavit. The reasons stated in the condonation petition by the legal heir and wife of assessee for belated filing is that, the assessee passed away during the appellate proceedings i.e., on 11.05.2021 (Copy of death certificate has been filed along with the condonation petition). It was stated that the assessee’s wife was unaware of the tax proceedings pending with respect of the assessee. Only during the first week of May, 2025 when the assessee’s wife received a call from the AO regarding outstanding demand, she came to know about the pending income-tax proceedings. Subsequently, she contacted her tax consultant and took steps to file appeal before the Tribunal. It was stated that the assessee’s wife had no knowledge about income tax matters nor she had occasion to access her husband’s emails. Therefore, it was submitted that the delay was not intentional and entirely due to the genuine cause. On perusal of the reasons stated, we find there is sufficient reasons for delay in - 3 - ITA No.1363/CHNY/2025 & SA No.55/CHNY/2025 filing this appeal before the Tribunal. Hence, we condone the delay in filing the appeal and proceed to dispose off the appeal on merits. 3. At the very outset, we notice that the CIT(A)’s order is ex- parte, since there was no compliance from the assessee to the various notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis u/s.144 of the Act. 4. The Ld.AR submitted that the assessee had passed away on 11.05.2021. Therefore, the hearing notices sent from the office of the First Appellate Authority to the email address of the assessee were not noticed by the assessee’s wife. The assessee’s wife was unaware of the tax proceedings pending with respect of the assessee. Only during the first week of May, 2025 when the assessee’s wife received a call from the AO regarding outstanding demand, she came to know about the pending income-tax proceedings. The Ld.AR further submitted that the assessment has been completed on best judgment basis u/s.144 of the Act. Therefore, it was prayed in the interest of justice and equity, the - 4 - ITA No.1363/CHNY/2025 & SA No.55/CHNY/2025 issue may be restored to the files of the AO as a last opportunity for proper representation of the case. 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 6. We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the CIT(A) was ex-parte, since the assessee did not respond to various notices issued. We note that the assessee had passed away during the appellate proceedings and the assessee’s wife is not aware of the pending proceedings resulted in non-appearance during the appellate proceedings. Therefore, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. - 5 - ITA No.1363/CHNY/2025 & SA No.55/CHNY/2025 SA No.55/CHNY/2025 7. Since, we have decided the appeal, the stay petition is rendered infructuous and we dismiss the same. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay petition filed by the assessee is dismissed. Order pronounced in the open court on 11th June, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 11th June, 2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "