MUTHIAH LAKSHMANAN,CHENNAI V. ITO, NCW-3(5), CHENNAI

ITA 3016/CHNY/2025

AI Insights

The case involves Muthiah Lakshmanan, an individual engaged in trading activities, who appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi, for the assessment year 2022-23. The Assessing Officer had initially assessed the assessee's income, including unexplained investments and short-term capital gains, due to non-response to statutory notices. The CIT(A) partly allowed the appeal but the assessee, still aggrieved, approached the Tribunal. The Tribunal found that the CIT(A) had not adequately considered the additional evidence and submissions provided by the assessee, leading to the decision to remit the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 824680 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2022-2023
• Appeal Filed On: 29-10-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN; C.I.T
• Assessee Lawyers: T.V MUTHU ABIRAMI
• Keywords: Set aside; Additional evidence; Unexplained investment; Cost of acquisition; Capital Gains

Judgement Text

"आयकर अपील य अ धकरण, ‘डी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI \u0015ी मनु क ुमार ग\u0019र, \u000eया\u001aयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम$ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:3016/Chny/2025 \u001aनधा%रण वष% / Assessment Year: 2022-23 Muthiah Lakshmanan, 16/3, Seethaamma Colony, 1 Main Road, 2nd Street, Alwarpet, Teynampet, Chennai – 600 018. vs. ITO, Non-Corp Ward -3(5), Chennai. [PAN: ADOPL-7512-R] (अपीलाथ'/Appellant) (()यथ'/Respondent) अपीलाथ' क+ ओर से/Appellant by : Ms. T.V Muthu Abirami, Advocate ()यथ' क+ ओर से/Respondent by : Shri. ARV Sreenivasan, C.I.T. सुनवाई क+ तार ख/Date of Hearing : 16.12.2025 घोषणा क+ तार ख/Date of Pronouncement : 01.01.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal of the assessee is filed against the order of the learned Commissioner of Income Tax (Appeals), NFAC, Delhi, (in short “ld.CIT(A)”) for the assessment year (A.Y.) 2022-23, vide order dated 17.09.2025. 2. Brief facts of the case are that the assessee is an individual, earning income from trading activities through ICICI Direct, Zerodha, Kotak Securities and has filed his return of income for AY 2022-23, admitting a total income of Rs.NIL. On perusal of the ITR, the Assessing Officer noticed that the assessee has disclosed “sale consideration of equity share or unit of equity oriented MF or unit of a business trust on which STT is paid u/s.111A & “Cost of acquisition without indexation” to the tune of Printed from counselvise.com :-2-: ITA. No:3016/Chny/2025 Rs.35,12,32,603/- and Rs.35,11,90,432/- respectively and the difference amount of Rs.42,171/- was offered as STCG. The case was selected for scrutiny, the Assessing Officer issued statutory notices to furnish proper documentary evidence and the assessee failed to respond to any of the notices. Since the assessee did not participate in the assessment proceedings, the Assessing Officer concluded the assessment u/s.144 r.w.s 144B of the Act on 24.03.2024 by making an addition of Rs.35,11,90,432/- as unexplained investment u/s.69 of the Act and Rs.3,22,14,480/- as Short Term Capital Gain and arrived a total income of Rs.38,34,04,910/-. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC on 08.07.2024. 4. At the outset, we observed that ld.CIT(A) has provided five opportunities for the assessee to appear for hearings as detailed in paragraph 7 of the ld.CIT(A) order to support the appeal of the assessee. In response, the assessee filed his submissions on 17.09.2025. On perusal of the submissions filed by the assessee, the ld. CIT(A) considered the appeal on merits and partly allowed by passing an order dated 17.09.2025. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us. 5. The ld.AR submitted that the ld. CIT(A), NFAC ignored the documents available on record and detailed written submissions filed by the assessee and the issue on short term capital gains was decided based on the statement of facts alone. Further, the ld.AR of the assessee submitted additional documentary evidence before the Tribunal. In view of the above, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of Assessing Officer. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively. 6. Per contra, The Ld.DR, objected for admission of additional evidence raised by the assessee. Further, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A). Printed from counselvise.com :-3-: ITA. No:3016/Chny/2025 7. We have heard the rival parties and perused the material available on record and additional evidence filed by the assessee and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the information available with the ITR and the same has been partly allowed by the ld.CIT(A), NFAC due to failure to furnish documentary evidence in support of the claims before the Assessing Officer as well as the ld.CIT(A). Before us the ld.AR submitted that the additional ground and evidence were filed before the ld.CIT(A) have not been considered and hence prayed for remitting the issue back to the AO for consideration. 8. In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after considering the additional grounds and evidence by providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 01st January, 2026 at Chennai. Sd/- Sd/- (मनु क ुमार ग\u0019र) (MANU KUMAR GIRI) \u000eया\u001aयक सद य/Judicial Member (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद य/Accountant Member चे\u000eनई/Chennai, /दनांक/Dated, the 01st January, 2026 SP आदेश क+ (\u001aत1ल2प अ3े2षत/Copy to: 1. अपीलाथ'/Appellant 2. ()यथ'/Respondent 3.आयकर आयु4त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 2वभागीय (\u001aत\u001aन ध/DR 5. गाड% फाईल/GF Printed from counselvise.com "