MUTHU KARUPPAI SUDAR,CHENNAI V. ITO, NCW-19(4), CHENNAI

ITA 1726/CHNY/2024

AI Insights

The case involves an appeal by Muthu Karuppai Sudar against an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2017-18. The primary contention was the addition of Rs. 52,50,000 as unexplained cash credits under sections 68 and 115BBE of the Income Tax Act, which was confirmed by an ex-parte order from the First Appellate Authority due to non-compliance by the assessee. The Tribunal found merit in the assessee's plea for a re-examination of the case, noting the lack of effective consideration of the case's merits by the CIT(A).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 46660 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-08-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 13-06-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: D.ANAND; T.POTHI
• Keywords: Set aside; Unexplained cash credit
• Section: 143(3); 250; 68

Judgement Text

"आयकर अपीलीय अधिकरण ‘बी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री मनु क ुमार गिरि, न्याययक सदस्य एवं श्री अममताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1726 /Chny/2024 ननिाारण वर्ा /Assessment Year: 2017-18 Muthu Karuppai Sudar No.403B, Gughan Agency, Thiruvottiyur High Road, Thiruvottiyur, Chennai-600 19. Vs. Income Tax Officer, Non-Corpn Ward-19(4), Chennai [PAN: CHQPS2044M] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Shri D.Anand, Advocate & Mr.T.Pothi Madhavan, CA प्रत्यर्थी की ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 21.08.2024 घोर्णा की तारीख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2024-25/1065210492(1) dated 29.05.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017-18. Through the aforesaid appeal the assesse has challenged the order u/s 250 dated 29.05.2024 passed by NFAC, Delhi. ITA No.1726/Chny/2024 :- 2 -: 2.0 At the outset the Ld. Counsel for the assesse informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 143(3) dated 27.12.2019 and that the appeal was dismissed for non-compliance. The Ld. AO has made an addition u/s 68 r.w.s 115BBE of Rs.52,50,000/- on account of unexplained cash credits being cash received from sundry debtors. The Ld. Counsel for the assesse submitted that it was not given sufficient time by the Ld. First Appellate Authority to provide the requested details and that it has all the confirmation letters from debtors in its possession. The Ld. Counsel submitted the matter may be restored to Ld. CIT(A) for readjudication on its merits and assured that it shall make full compliance to the notices of Ld. CIT(A). In support of its contentions, the Ld. Counsel filed a detailed paper book. The Ld. DR would like to rely upon orders of authorities below. 3.0 We have heard the rival submissions in the light of material available on records. It is trite law that no litigant benefits by non-prosecution of its case. We find sufficient force in the pleadings of the assesse as to why it could not make due compliance to the proceedings before. We have also noted that apart from merely harping on the issue of non-compliance by the assesse the Ld. CIT(A) has not effectively touched upon merits of the case. 4.0 We are therefore of the view that ends of justice would be met if the case is set aside to the file of the Ld. CIT(A) for readjudication after giving opportunities of being heard to the assesse and to pass a speaking order. He will be at liberty to call for any remand report from the Ld. AO if deemed ITA No.1726/Chny/2024 :- 3 -: appropriate. The assesse shall be bound to comply to all the notices and details called by the Ld. CIT(A). Any non-compliance from the assesse side shall be adversely viewed. Accordingly, we set aside the order of the Ld. First Appellate Authority and direct him to readjudicate the matter de novo. Accordingly, the grounds of appeal raised by the assesse are allowed for statistical purposes. 5.0. In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced on 8th , November, 2024. Sd/- (मनु क ुमार गिरि) (Manu Kumar Giri) न्याययक सदस्य / Judicial Member Sd/- (अममताभ शुक्ला) (amitabh shukla) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनाांक/Dated: 8th , November, 2024. KB/- आदेश की प्रतिललपप अग्रेपिि/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्ि/CIT, Chennai 4. पिभागीय प्रतितनधि/DR 5. गार्ड फाईल/GF "