MANI SHANTHI,NAMAKKAL V. ITO, CIRCLE-1, ERODE

ITA 1224/CHNY/2025

AI Insights

The case involves an appeal by Mani Shanthi against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2020-21. The primary contention was the non-receipt of hearing notices, which led to the dismissal of her appeal by the CIT(A) for non-compliance. The Assessing Officer had earlier disallowed the agricultural income claimed by the assessee due to lack of supporting details, which was added to her total income. The Tribunal found the reasons for the delay in filing the appeal to be bona fide and admitted the appeal for adjudication, ultimately deciding to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668840 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: SENTHIL KUMAR
• Keywords: Condonation of delay; Set aside
• Section: 144; 142(1)

Judgement Text

" आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.1224/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2020-21 Mani Shanthi, 40, Perumal Koil Street, Sendamangalam, Namakkal 637 407. [PAN:AJNPS2143N] Vs. The Income Tax Officer, Circle 1, Erode. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Senthil Kumar, Advocate ŮȑथŎ की ओर से/Respondent by : Shri Vijay Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 18.06.2025 घोषणा की तारीख /Date of Pronouncement : 25.06.2025 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 12.10.2023 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2020-21. 2. We find that this appeal is filed with a delay of 393 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we I.T.A. No.1224/Chny/25 2 find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The only effective ground raised by the assessee is that the order of the first appellate authority is liable to be set aside, which was not decided on merits and more particularly in the absence of communication of the hearing notices to the assessee in the latest mail id given in the return of income. 4. Brief facts of the case are that the assessee is an individual and filed the return of income on 23.01.2021 declaring total income at ₹.35,99,480/- for AY 2020-21. The case was selected for limited scrutiny under CASS to verify the issue of agricultural income and issued notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] dated 29.06.2021. Thereafter, notices under section 142(1) of the Act were issued. Further, the Assessing Officer issued notice under section 144 of the Act dated 10.03.2022 and also issued a show-cause notice dated 23.08.2022. There was no compliance to any of the above notices issued by the Assessing Officer. The Assessing Officer noted from the return of income that the assessee has shown gross agricultural receipts at ₹.29,56,220/- and claimed the same as exempt. Since the assessee did I.T.A. No.1224/Chny/25 3 not file any details in support of the claim, the Assessing Officer disallowed the agricultural income of ₹.29,56,220/- and added to the total income of the assessee. On appeal, the ld. CIT(A) confirmed the addition made by the Assessing Officer and dismissed the appeal of the assessee for non-compliance to the hearing notices issued by the ld. CIT(A). 5. The ld. AR Shri Senthil Kumar, Advocate submits that non- compliance to the hearing notices issued by the ld. CIT(A) is neither wilful nor wanton since no hearing notice was served in the latest mail id of the assessee. Thus, ld. AR prayed that the assessee may be afforded one more opportunity to prosecute her case before authorities below. 6. The ld. DR Shri Vijay Kumar, JCIT supported the order passed by the authorities below. 7. Heard both the parties and perused the material available on record. In this case, the Assessing Officer completed the assessment under section 144 r.w.s. 144B of the Act dated 20.09.2022 by treating the gross agricultural receipts at ₹.29,56,220/- as income from other sources since the assessee could not furnish any details in support of the claim made in the return of income. The assessee preferred an appeal before the ld. CIT(A). As per para 5 of the impugned order, we note that the ld. I.T.A. No.1224/Chny/25 4 CIT(A) issued hearing notices dated 07.06.2023, 05.09.2023 and 13.09.2023, but, however, neither any reply was furnished nor any adjournment was sought for by the assessee. We note that in the grounds of appeal as well as in the affidavit, the assessee mainly contended that no hearing notice of the ld. CIT(A) was served in the latest mail id of the assessee, given in the return of income. Considering the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the Assessing Officer to consider the explanations and documentary evidences as may be filed by the assessee and decide the issue afresh. Thus, the ground raised by the assessee is allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th June, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 25.06.2025 I.T.A. No.1224/Chny/25 5 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. "