M/S. GNANASUNDARAM RAVANAN,CHENNAI V. DCI, CENTRAL CIRCLE-2(1), CHENNAI

ITA 104/CHNY/2025

AI Insights

The case involves appeals by Shri Gnanasundaram Ravanan against the orders of the Commissioner of Income Tax (Appeals), Delhi, for the Assessment Years 2014-15 and 2017-18. The appeals were directed against the assessments made under sections 143(3) and 144 read with section 147 of the Income Tax Act, following a survey and subsequent reopening of the assessment. The primary contention was the non-response of the assessee to notices during the COVID-19 pandemic, which led to ex-parte assessments. The Tribunal, considering the circumstances of the pandemic and the principles of natural justice, decided to grant another opportunity of hearing to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47064 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. CLEMENT RAMESH KUMAR
• Assessee Lawyers: ANANDD BABUNATH
• Keywords: Set aside; Principle of natural justice
• Section: 147; 148; 144

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.Nos.104 & 164/Chny/2025 (िनधा\u0005रण वष\u0005 / Assessment Years: 2014-15 & 2017-18) Shri Gnanasundaram Ravanan, A-2 Desika Road, Mylapore, Chennai-600 004. Vs DCIT, Central Circle-2(1), Chennai. PAN : AAFPR-6480-E (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Shri Anandd Babunath, FCA \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Shri R.Clement Ramesh Kumar, CIT सुनवाईक\bतारीख/Date of hearing : 07.04.2025 घोषणाक\bतारीख /Date of Pronouncement : 08.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeals filed by the assessee are directed against the orders of the Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] both dated 29.10.2024 for Assessment Years 2014-15 & 2017-18. The facts and issues are admittedly identical in both the appeals. Therefore, they were heard together and are disposed of by this common order. We take up the appeal in ITA No.104/Chny/2025 for AY 2014-15 for adjudication as lead year. 2. The registry has noted delay of 17 days in filing the appeal in ITA No.104/Chny/2025 for AY 2014-15. Considering the reasons stated 2 ITA Nos.104 & 164/Chny/2025 in the affidavits by Assessee, we condone the delay and treat the reasons as ‘sufficient cause’ and admit the appeal for adjudication. ITA No.104/Chny/2025 (A.Y 2014-15): 3. Brief facts are as under: The assessee is an individual filed his return of income on 30.03.2015 admitting income of Rs.39,88,950/-. The case was selected for scrutiny and assessment was completed u/s.143(3) of the Act on 30.12.2016 . Subsequently, a survey u/s.133A of the Act was carried out on 11.02.2020 in the business premises of the assessee. Consequently, case was reopened u/s.147 of the Act and notice u/s. 148 was issued to the assessee on 24.03.2020. Since there was no response from the assessee, the AO has completed the assessment u/s.144 r.w.s. 147 of the Act on best judgement basis. 4. Assessee further challenged order of assessment u/s. 144 r.w.s 147 of the Act before the ld.CIT(A) who proceeded ex-parte and dismissed appeal of the assessee. Aggrieved by the CIT(A) order, assessee is in further appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the assessment order was passed during the Covid-19 period and hence, the assessee could not respond to the notices. The Ld.AR has placed on record voluminous of documents in order to justify the claim of 3 ITA Nos.104 & 164/Chny/2025 the assessee from page 1 to 136 of the paper book as per index, which reads as under:- Therefore, he prayed that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his explanation regarding claim of capital gain etc before the AO. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in these cases and prayed for dismissal of the both appeals. 4 ITA Nos.104 & 164/Chny/2025 6. Though we concur with the submissions of Ld. Sr. DR however, keeping in mind Covid-19 pandemic and the principle of natural justice, grant another opportunity of hearing to the assessee. We also did not find notice of hearing given to assessee to appear to represent before the ld.CIT(A). We also note that even before AO the order is ex-parte. Accordingly, the impugned orders are set aside and the appeals are restored back to the file of Ld. AO for denovo assessments on merits after affording proper opportunity of hearing to the assessee subject to cost of Rs.5,000/- each appeal which shall be deposited by the assessee within 30 days from the date of receipt of these orders to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposits in both cases will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessments after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents regarding capital gain etc, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the both assessment proceedings on merits as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute these cases diligently. 5 ITA Nos.104 & 164/Chny/2025 7. It is admitted position that facts as well as issues in these two appeals are pari-materia the same. Consequently, our adjudication as above shall mutatis mutandis apply to ITA No.164/Chny/2025 also. 8. In the result, both the appeals filed by the assessee are allowed for statistical purpose. Order pronounced in the open court on 8th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date:08.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Coimbatore/Madurai 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "