MUNIRAJ KOUSALYA DEVI ,KRISHNAGIRI V. ITO, WARD-1, KRISHNAGIRI

ITA 2110/CHNY/2024

AI Insights

The case involves Muniraj Kousalya Devi, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The original assessment was made by the Income Tax Officer, Ward 1, Krishnagiri for the assessment year 2017-2018 under section 144 of the Income Tax Act, 1961, due to unresponded notices regarding cash deposits in demonetized currency. The CIT(A) dismissed the appeal on merits as the appellant failed to appear despite multiple notices. The Tribunal found that the principles of natural justice were not properly followed and granted a de novo hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29258 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 22-10-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 08-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWIN D GOWDA; IRS
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Keywords: Set aside; Principle of natural justice
• Section: 139

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.2110/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-2018) Muniraj Kousalya Devi, 2/87, Melpudur Street, Rayakottai Road, Krishnagiri 635 001. [PAN: CSSPK 8670C] Vs. The Income Tax Officer, Ward 1, Krishnagiri. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri. T.S. Lakshmi Venkataraman, C.A. Ĥ×यथȸ कȧ ओर से /Respondent by : Shri. Ashwin D Gowda, IRS, Addl. CIT. सुनवाई कȧ तारȣख/Date of Hearing : 22.10.2024 घोषणा कȧ तारȣख /Date of Pronouncement : 23.10.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1065441669(1) dated 06.06.2024. The assessment was framed by the Income Tax Officer, Ward 1, Krishnagiri for the assessment year 2017-2018 u/s.144 of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 29.10.2019 2 ITA No.2110 /Chny/2024 2. Brief facts of the case are that the assessee is an individual. As per the information available to the Department, it was noticed that the assessee has made cash deposits in \"Specified Bank Notes (SBNs)' (Demonetized Currency) in bank account(s) during the Demonetized period (i.e. from 9.11.2016 to 30.12.2016) relevant for the Assessment Year 2017-18. It is further noticed that the assessee had not filed any return of income as required as per the provisions of section 139 of Income-tax Act for the aforesaid period. Notices u/s.142(1) of the Act were issued to the assessee. However there was no response from assessee. Hence, ld. Assessing Officer made an addition of Rs.95,01,591/- and completed the assessment. 3. Aggrieved assessee preferred an appeal before the ld.CIT(A), who dismissed the appeal of assessee on merits, although assessee failed to appear before the ld.CIT(A) despite four notices. Assessee is in further appeal before us. 4. Before us, ld. Counsel for the appellant submitted that the ld. AO as well as the ld. CIT(A) had not properly followed the principles of natural justice in true spirit. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given before ld.AO, assessee will prosecute the case in assessment proceedings properly. Per contra, ld.Addl. CIT-DR relied upon the orders of the lower authorities and prayed for dismissal of appeal. 5. We have gone through the orders of lower authorities and submissions addressed by both parties before us. We are of the considered view that in the 3 ITA No.2110 /Chny/2024 interest of justice assessee should be given one more opportunity before the Assessing Officer to prosecute his case. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of Assessing Officer for denovo adjudication of appeal. The Assessing Officer who shall proceed for denovo adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Assessing Officer shall be at liberty to proceed with the assessment as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 23rd day of October, 2024 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated : 23-10-2024 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai/Coimbatore/Madurai/Salem. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "