MAHALINGAM SUNDARA MOORTHY,CHENNAI V. ITO, CORPORATE WARD-4(1), CHENNAI

ITA 1682/CHNY/2025

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The case involves Mahalingam Sundara Moorthy, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issue was the confirmation of additions made by the Assessing Officer through an exparte order due to the appellant's non-compliance in providing necessary details and attending hearings. The Assessing Officer had made several disallowances and penalties due to non-furnishing of details and non-compliance with notices under various sections of the Income Tax Act, 1961. The Tribunal noted the lack of cooperation from the assessee but decided to provide one more opportunity to comply with the procedural requirements.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775009 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 10-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N. RAJA KUMAR
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 142(1); 68; 131

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी एस.आर. रगुनाथॎ, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri S.R. Raghunatha, Accountant Member आयकर अपील सं./I.T.A. No.1682/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Mahalingam Sundara Moorthy, 602, Srithi Block, Chitra Avenue, Nungambakkam, Chennai 600 034. [PAN:AFYPM5382G] Vs. The Income Tax Officer, Corporate Ward 4(1), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri N. Rajakumar, Addl. CIT सुनवाई की तारीख/ Date of hearing : 26.08.2025 घोषणा की तारीख /Date of Pronouncement : 02.09.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 26.05.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2017-18. 2. None appeared on behalf of the assessee and hence, we proceed to dispose the appeal on merits after hearing the ld. DR. Printed from counselvise.com I.T.A. No.1682/Chny/25 2 3. The assessee raised 14 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the additions made by the Assessing Officer by passing exparte order in the facts and circumstances of the case. 4. At the outset, we note that the assessee filed his return of income for AY 2017-18 declaring total income of ₹.74,66,570/-. The case was selected for scrutiny and notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] was issued on 09.08.2018. The Assessing Officer issued notice under section 142(1) of the Act dated 28.01.2019 and subsequent reminder dated 28.02.2019 was also issued followed by another reminder dated 30.03.2019. Further, the Assessing Officer issued a notice under section 142(1) of the Act dated 11.10.2019. Since there was no response from the assessee, the Assessing Officer issued notice under section 274 r.w.s. 272(1)(d) of the Act dated 30.07.2019 show-causing the assessee as to why penalty under section 272A(1)(d) of the Act should not be levied for non-furnishing of details as called for vide above notices. Since there was no response from the assessee, the Assessing Officer levied penalty of ₹.10,000/- under section 274 r.w.s. 272A(1)(d) of the Act dated 30.09.2019 for non furnishing of details. The Assessing Officer issued a summon Printed from counselvise.com I.T.A. No.1682/Chny/25 3 under section 131 of the Act dated 21.10.2019 requiring the assessee to appear before the Assessing Officer on 25.10.2019, but, however, assessee failed to comply with this summon and submitted partial details. The Assessing Officer again issued notices under section 142(1) of the Act dated 31.10.2019 and 16.11.2019 to the assessee to submit full details, but, the assessee has not submitted the details as called for. Hence, the Assessing Officer proceeded to complete the assessment by making disallowances of ₹.17,17,900/-, 23,33,037/- and ₹.23,33,143/- as unexplained cash credit under section 68 of the Act besides disallowance of expenses at ₹.4,56,60,080/- and assessed the income of the assessee at ₹.5,95,10,730/-. Since there was no response to various hearing notices issued by the ld. CIT(A), the appeal filed by the assessee was dismissed for want of prosecution. On being aggrieved by the impugned order, the assessee preferred present appeal before the Tribunal. 5. Having heard the ld. DR, on perusal of the impugned order, we note that the ld. CIT(A) issued hearing notices under section 250 of the Act dated 14.01.2021, 22.08.2024 & 02.12.2024 to furnish the details by 13.02.2025, 17.04.2025 and 02.05.2025, but, however, there was no compliance from the assessee. We note that in the grounds of Printed from counselvise.com I.T.A. No.1682/Chny/25 4 appeal at ground No. 5, the assessee has contended that there was no proper opportunity given before passing of the impugned order. We note that the assessee has not at all cooperated with the Department in completing the assessment either before the Assessing Officer or before the ld. CIT(A) or the assessee filed any written submissions with documentary evidence to substantiate his claims before the Tribunal. However, to meet the ends of natural justice, we deem it proper to afford one more opportunity and accordingly, direct the Assessing Officer to afford final opportunity to the assessee subject to the condition of payment of ₹.10,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions along with documentary evidences, if any, as may be filed by the assessee to substantiate his claim. In case if the assessee fails to furnish complete details with documentary evidence before the Assessing Officer, the assessment already completed vide order dated 11.12.2019 stands sustained. Printed from counselvise.com I.T.A. No.1682/Chny/25 5 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 02nd September, 2025 at Chennai. Sd/- Sd/- (S.R. RAGHUNATHA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 02.09.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "