LOGANATHAN SENTHILKUMARAN,CHENNAI V. ADDITIONAL / JOINT/ DEPUTY/ASISSTANT COMMISSIONER OF INCOME TAX / ITO, DELHI

ITA 1027/CHNY/2025

AI Insights

The case involves Loganathan Senthilkumaran, who operates a gas agency and had his income tax assessment for the year 2014-15 reopened under section 147 of the Income Tax Act due to discrepancies in reported purchases. The A.O added Rs. 19,11,081 to the assessee's income, which led to an appeal. The CIT(A) dismissed this appeal ex-parte due to non-compliance by the assessee with notices. The Tribunal found that the CIT(A) should have adjudicated the matter on its merits despite the non-compliance and thus remitted the case back to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669481 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: Set aside; Non compliance
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1027/Chny/2025 िनधा9रण वष9 /Assessment Years: 2014-15 Loganathan Senthilkumaran, No.17A, Jeevanatham Road, Adyar, Chennai – 600 020. [PAN: AAIPK 7184P] Vs. The Income Tax Officer, Non Corporate Ward-15(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : None GHथ की ओर से /Respondent by : Shri Shiva Srinivas, CIT सुनवाई की तारीख/Date of Hearing : 17.06.2025 घोषणा की तारीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 14.12.2023. 2. When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. D.R. ITA No.1027/Chny/2025 Loganathan Senthilkumaran :- 2 -: 3. The assessee is engaged in the business of gas agency under the name and style of M/s. His Grace Agency, a dealer of Hindustan Petroleum Corporation Ltd. The assessee had filed return of income on 01.10.2014 declaring a total income of Rs.1,42,870/-. The assessment was reopened u/s. 147 of the Act based on a discrepancy between the total purchases as per the sale order report issued by HPCL and the books of account maintained by the assessee. Consequently, the A.O passed an order u/s. 147 of the Act making an addition of Rs.19,11,081/-. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A), who passed the order ex-parte due to non-compliance with notices and dismissed the appeal without adjudicating the issues on merits. 4. The Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex- parte as the assessee has been non compliance to the notices issued. 5. We have heard the submissions of the Ld. DR and perused the material available on record. On perusal of the order of the Ld. CIT(A), we find that the appeal was dismissed solely on the ground of non- compliance by the assessee, without dealing with the merits of the ITA No.1027/Chny/2025 Loganathan Senthilkumaran :- 3 -: additions made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits, especially in the context of a reopened assessment involving factual issues. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co- operate with the proceedings and 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 only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th June, 2025. EDN/- ITA No.1027/Chny/2025 Loganathan Senthilkumaran :- 4 -: आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "