MR. CHENGALRAYA NAIDU RAJANBABU,CHENNAI V. ITO, CORP. WARD.3(1), CHENNAI

ITA 1171/CHNY/2025

AI Insights

The case involves Chengalraya Naidu Rajanbabu, who appealed against the assessment order for the Assessment Year 2017-18, which treated his agricultural income as 'income from other sources' and added Rs. 19,25,000 to his income. The initial appeal to the CIT(A) was dismissed due to non-compliance by the assessee without considering the merits. The Tribunal found that the CIT(A) should have adjudicated the matter on its merits rather than dismissing it on procedural grounds. Consequently, the Tribunal set aside the previous orders and remitted the case back to the CIT(A) for a detailed examination and a reasoned decision.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669484 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Other Referred Cases: CIT vs. Multiplan India Pvt. Ltd. reported in 38 ITD 320 (Delhi)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Keywords: Set aside; Non compliance
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1171/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 Chengalraya Naidu Rajanbabu, 17/22, Nutech Richmount Square, First Main Road, U.I Colony, Kodambakkam, Chennai-600024. [PAN: ACZPR 4879D] Vs. The Income Tax Officer, Corporate Ward-3(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : None HIथF की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 29.06.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 21.12.2019. ITA No.1171/Chny/2025 Chengalraya Naidu Rajanbabu :- 2 -: 2. There is a delay of 237 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Shri Vijay Kumar, JCIT. 4. The assessee is an individual who filed his return of income on 29.07.2017, declaring a total income of Rs. 13,79,950/-. In the assessment framed under section 143(3) of the Income-tax Act, 1961 (“the Act”), the Assessing Officer made an addition of Rs. 19,25,000/- by treating the agricultural income declared by the assessee as “income from other sources.” Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A), who confirmed the addition without going into merits of the case relying on the order ITA No.1171/Chny/2025 Chengalraya Naidu Rajanbabu :- 3 -: of ITAT, Delhi in the case of CIT vs. Multiplan India Pvt. Ltd. reported in 38 ITD 320 (Delhi). 5. The Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex- parte as the assessee has been non compliance to the notices issued. 6. We have heard the submissions of the Ld. DR and perused the material available on record. On perusal of the order of the Ld. CIT(A), we find that the appeal was dismissed solely on the ground of non- compliance by the assessee, without dealing with the merits of the additions made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of ITA No.1171/Chny/2025 Chengalraya Naidu Rajanbabu :- 4 -: hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 26th 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "