M.R. HEMANATHAN (HUF),SALEM V. DCIT, CIRCLE-1(1), SALEM

ITA 848/CHNY/2025

AI Insights

The case involves an appeal by M.R. Hemanathan, HUF against the order of the CIT(A), National Faceless Appeal Center, Delhi, for the assessment year 2016-17. The primary contention was the dismissal of the appeal by the CIT(A) without proper appreciation of the facts and failure to adjudicate all grounds raised, particularly the legal ground concerning the non-issuance of a mandatory notice under section 143(2) after filing a return of income under section 148. The assessee argued for the clubbing of similar pending appeals for convenience, which was not conceded by the CIT(A). The Tribunal found merit in the assessee's arguments and directed a re-examination of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714321 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2016-2017
• Other Referred Cases: Hon'ble Apex Court as it 321 ITR 362
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAM S MUKUNDAN; IRS
• Assessee Lawyers: BHUPENDRAN
• Keywords: Set aside; Opportunity of being heard; Gift
• Section: 148; 144; 142(1)

Judgement Text

"/आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.848/Chny/2025 Assessment Years: 2016-17 M.R.Hemanathan, HUF, No.29/84, Murari Varadiyer Street, Salem, Tamil Nadu-636 001. [PAN: AAOHM4352D] Deputy Commissioner of Income Tax, Circle-1(1), Salem. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri Bhupendran, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.Gautham S Mukundan, IRS सुनवाई की तारीख/Date of Hearing : 05.06.2025 घोषणा की तारीख /Date of Pronouncement : 06.08.2025 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 / 1072444797(1) dated 23.01.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2016-17. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. Printed from counselvise.com ITA No. 848/Chny/2025 Page - 2 - of 4 2.0 At the outset, the Ld.Counsel for the assessee submitted that the Ld.CIT(A) has dismissed his appeal without properly appreciating facts of its case and also by not adjudicating all the grounds raised. It is the case of the assessee that on similar facts few other appeals were pending before the Ld.CIT(A) and he had requested for clubbing which was not conceded by the Ld.CIT(A). It is the case of the assessee that since all other appeals were also on identical facts, request for clubbing was made for convenience of adjudication. The Ld. Counsel further submitted that before the Ld. CIT(A) it had raised legal ground stating that even though it had filed its Return of Income u/s 148, the Ld.AO concluded assessment without issuing the mandatory notice u/s 148. It was accordingly requested that the matter may be considered for remission back to the Ld. CIT(A) for readjudication of assessee’s appeal. 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. On the first argument of the assessee regarding the adjudication through clubbing of various appeals on identical facts, we find force in the argument that it should have been done for convenience of adjudication, economy of time etc. As regards non-adjudication of appellant’s legal ground we have noted from the assessment order that notice u/s 148 dated 30.03.2021 was issued to examine genuineness of gifts received by the assessee. According to the Ld.AO it had issued Printed from counselvise.com ITA No. 848/Chny/2025 Page - 3 - of 4 notice u/s 142(1) dated 30.03.2021. Order u/s 144 was passed on 30.03.2022 by recording inadequate compliance by the assessee. The assessee has placed on record its paper book which indicates that in response to notice u/s 148, Return of Income was filed on 18.04.2021 declaring total income of Rs.34,020/-. We have noted that vide ground of appeal no.3 raised before the Ld. CIT(A) assessee had contested that assessment order passed without issuance of notice u/s 143(2) is bad in law and liable to be quashed within the meanings of decision of Hon’ble Apex Court as it 321 ITR 362. We have noted that the Ld. CIT(A) has merely dismissed this ground on the premise that the appellant had failed to adduce any evidence in support of the averments made. We are not inclined to accept the reasoning of the Ld. First Appellant Authority since this was crucial point raised by the assessee and assuming that the appellant was not complying, the Ld. CIT(A) as a conscientious judicial authority of the Revenue department could have verified this aspect by exercising vide powers available to him under the law. The assessee had challenged the jurisdiction of the Ld.AO which could not have been lightly ignored by the Ld. First Appellate Authority. Accordingly, in the interest of justice, we deem it appropriate to set aside the order of the Ld.CIT(A) and direct him to readjudicate the appeal de novo, in accordance with law, after giving due opportunity of being heard to the Printed from counselvise.com ITA No. 848/Chny/2025 Page - 4 - of 4 assessee and by passing a speaking order. All the grounds of appeal raised by the assessessee are therefore allowed for statistical purposes. 5.0 In the result, the appeal of the assessee is allowed for statistical purposes Order pronounced on 6th , Aug-2025 at Chennai. Sd/- (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member Sd/- (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 6th , Aug-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai/Coimbatore/Madurai/Salem. 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF Printed from counselvise.com "