MRS. MANJULA SURESH BABU,HOSUR V. .ITO, WARD-1(1), HOSUR

ITA 2682/CHNY/2024

AI Insights

The case involves Manjula Suresh Babu, who during the demonetization period, deposited cash and failed to file a return of income for the Assessment Year 2017-18. The Assessing Officer issued a notice under section 142(1) of the Income-tax Act, 1961, which the assessee did not comply with, leading to an ex-parte assessment order under section 144, assessing her income at Rs. 27,02,681. The assessee's appeal to the CIT(A) was also dismissed ex-parte due to non-response to multiple notices. The Tribunal, considering the principles of natural justice and the circumstances presented, decided to remand the case back to the A.O for a decision on merits, providing the assessee another opportunity to present her case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107248 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Keywords: Set aside; Principle of natural justice
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2682/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2017-18 Manjula Suresh Babu, No.2/919, New Building, Alasanatham Road, Narasamma Colony, Hosur-635 109. Vs. The Income Tax Officer, Ward-1(1), Hosur. [PAN: AQPJM 7356G] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : None IJथG की ओर से /Respondent by : Ms. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 18.12.2024 घोषणा की ता रीख /Date of Pronouncement : 20.12.2024 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, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 22.08.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 06.12.2019. ITA No.2682/Chny/2024 :- 2 -: 2. The assessee has deposited cash during demonetization period, and has not filed return of income. The A.O has issued notice u/s. 142(1) of the Act for filing return, but the assessee has not complied for the same. The A.O therefore proceeded to pass order u/s. 144 assessing total income of Rs. 27,02,681/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) has issued five notices to the assessee from 01.11.2023 to 08.08.2024, but the assessee did not respond to the notices. Therefore, the Ld. CIT(A) has dismissed the appeal ex-parte. 3. The Ld. Authorized Representative (A.R) of the assessee before us has argued that the assessee is an old lady and not conversant with the income tax proceedings and the AR whose email was given has not informed about the notices. The Ld AR has prayed that one more opportunity may be given to substantiate her case in the interests of justice. 4. We have heard the rival submissions, and perused the materials available on record. ITA No.2682/Chny/2024 :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that both the orders have been passed ex-parte for the non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with one more opportunity to substantiate her case before the A.O subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we set aside the orders passed by the lower authorities and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for her fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No.2682/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th December, 2024. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "