M/S. KOTHANDARAMAN SURESH (HUF),VELLORE V. ITO, WARD-1, VELLORE

ITA 772/CHNY/2025

AI Insights

The case involves an appeal by M/s. Kothandaraman Suresh (HUF) against the order of the CIT(A), which had dismissed their appeal as time-barred. The original assessment by the AO included additions under sections 69A and business or profession, based on substantial cash deposits reported during FY 2017-18. The assessee's appeal to the CIT(A) was initially dismissed due to a delay attributed to the ill health of the Karta's wife. The Tribunal found that the CIT(A) had not adequately considered the medical reasons for the delay and did not allow the assessee an opportunity to present a medical certificate. Consequently, the Tribunal set aside the CIT(A)'s order and remanded the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633590 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: VARUN RANGANATHAN
• Keywords: Condonation of delay; Set aside
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI मा ननीय \u001bी मनु क ुमा र िग र, \u0010ा ियक सद! एवं मा ननीय एस. आर. रघुना था , लेखा सद! क े सम) BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.772/Chny/2025 िनधा 8रण वष8 /Assessment Year: 2018-19 M/s. Kothandaraman Suresh (HUF) No.63/1, Aruganthampoondi Big Street, Thottapalayam, Vellore – 632 004. [PAN: AAAHK 3933J] Vs. The Income Tax Officer, Ward-1, Vellore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri Varun Ranganathan, Advocate HIथF की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : 10.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member): The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [CIT(A)] dated 04.09.2024 for Assessment Year 2018-19. 2. There is a delay of 107 days in filing this appeal. The assessee has filed petition along with affidavit for condonation of delay stating therein the reasons for belated filing of these appeals. On perusal of ITA No.772/Chny/2025 M/s. Kothandaraman Suresh (HUF) :- 2 -: the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of this appeal. Hence, we condone the delay in filing this appeal and proceed to dispose of the appeals on merits. 3. Brief facts of the case are as under: AS per the information received from the Insight portal uder “Non-filing of return (NMS)”. During the FY 2017-18, the assessee has made following transaction: Rs.88,58,000/- reported in 2 reports for cash deposits in one or more accounts (other than a current account and time deposit) of a person (SFT-004). The AO passed assessment u/s 147 r.w.s 144 read with section 144B making addition of Rs.88,58,000/- u/s 69A on account of cash deposit and Rs.2,73,729/- under the head business or profession. Aggrieved, assessee challenged the order of the assessment before the CIT(A), who did not admit the appeal and dismissed the appeal of the assessee in limine as the same is time barred by 24 days. Now assessee is in appeal before us. 4. Before us, the Ld. counsel submitted that appeal before the Ld. CIT(A) was filed late on account of ill health of the Kartas wife. ITA No.772/Chny/2025 M/s. Kothandaraman Suresh (HUF) :- 3 -: 5. Per contra, Ld. DR relied upon the impugned order and pleaded for the dismissal of the appeal. She further argued that the assessee failed to file medical certificate relating to illness. 6. We have heard the rival submission, perused the record of appeal papers. We are of the considered view that while rejecting the appeal on account of ‘medical reasons’ cannot be lightly handled. We also find that the Ld. CIT(A) has not given opportunity to the assessee to furnish medical certificate, if any. Accordingly, the impugned order is set aside and the ld. CIT(A) is directed to condone the delay and hear the appeal afresh on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents regarding cash deposits, if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings as per law. The ld. counsel, who appeared has assured the bench that he will ensure that the assessee will prosecute his case diligently before the Ld. CIT(A). ITA No.772/Chny/2025 M/s. Kothandaraman Suresh (HUF) :- 4 -: 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 10th day of June, 2025 at Chennai. Sd/- Sd/- (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member (मनु क ुमार िग र) (Manu Kumar Giri) \u0010ाियक सद! / Judicial Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 10th June, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "