MARAPPAGOUNDER PERIASAMY,CHENNAI V. ITO, NCC-19(1), CHENNAI

ITA 1351/CHNY/2025

AI Insights

The case involves Marappagounder Periasamy, who appealed against the order of the Learned Commissioner of Income Tax (Appeals), which had dismissed his appeal ex-parte. The original assessment by the Assessing Officer under sections 147 and 144B of the Income-tax Act, 1961, added Rs. 21,39,877 to the assessee's income due to an unexplained difference in bank account balances. The Tribunal found that the assessee was not given a sufficient opportunity to present his case at the appellate level and thus remitted the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711783 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: S. SUNDAR RAMAN; C.A
• Keywords: Principle of natural justice
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1351/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2014-15 Marappagounder Periasamy, 13, Defence Officer’s Colony, 2nd Avenue, Guindy, Chennai – 600 032. [PAN: AAGPP 9234K] Vs. The Income Tax Officer, Non Corporate Circle-19(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri S. Sundar Raman, C.A HIथF की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 24.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.03.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 30.03.2022. Printed from counselvise.com ITA No.1351/Chny/2025 Marappagounder Periasamy :- 2 -: 2. The assessee filed his return of income on 18.09.2014, declaring a total income of Rs. 22,00,000/-. The A.O has reopened the assessment and made addition of Rs. 21,39,877/- in the order passed u/s. 147 of the Act, on the ground that the assessee has failed to satisfactorily explain the difference in the closing balance of SBI account as shown in the bank statement and in the balance sheet. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. Ld. CIT(A). However, the Ld. CIT(A) had dismissed the appeal ex-parte as the assessee did not make any submissions during the course of appellate proceedings. 3. The Ld. Authorized Representative (A.R.) submitted that the Ld. CIT(A) has decided the appeal ex-parte without granting sufficient opportunity to the assessee, and therefore, prayed that one more opportunity be granted to substantiate the assessee’s claim. 4. The Learned Departmental Representative (Ld. D.R.) relied on the orders passed by the lower authorities. 5. We have heard the rival submissions and perused the material available on record. It is observed that the A.O. made an addition of Rs. 21,39,877/- u/s. 69 of the Act, on account of the difference in the Printed from counselvise.com ITA No.1351/Chny/2025 Marappagounder Periasamy :- 3 -: closing balance of the SBI account as per the balance sheet and the bank statement. The addition was made on the basis that the assessee failed to offer a satisfactory explanation regarding the said difference. On appeal, the Ld. CIT(A) dismissed the appeal ex-parte due to non-appearance and non-submission by the assessee. Before us, the Ld. A.R. submitted that the A.O. erroneously treated Savings Bank Account No. 20001037598 and Current Account No. 10562765 as one and the same, assuming both relate to the assessee's business. However, the savings account pertains to the assessee’s personal account and has no connection with business operations. It was further submitted that the assessee is now in a position to provide all necessary details and documentary evidence to substantiate his case. In our considered opinion, and keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we remit the matter back to the file of the Ld. CIT(A) for denovo adjudication. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.1351/Chny/2025 Marappagounder Periasamy :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 24th day of July, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 24th July, 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 Printed from counselvise.com "