N.S. SIVARAJ,GOBCHETTIPALAYAM V. ITO, WARD-2(1), ERODE

ITA 1342/CHNY/2025

AI Insights

The case involves N.S. Sivaraj, the proprietor of Sri Bannari Amman Industry, who appealed against the order of the CIT(A) for the Assessment Year 2017-18. The primary issue was the rejection of his appeal due to a significant delay (825 days) in filing, which the CIT(A) did not condone. The assessee had filed a belated Return of Income, which was not accepted by the Assessing Officer, leading to an ex parte assessment under sections 144 and 147 of the Income Tax Act. The Tribunal found the reasons for the delay, including the assessee's severe illness due to COVID-19, sufficient to warrant a condonation of delay and a re-examination of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711426 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: N.C. RAVIKRISHNA
• Keywords: Set aside; Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI ŵी मनु क ुमार िगįर, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1342/Chny/2025 िनधाᭅरण वषᭅ/Assessment Year: 2017-18 N.S. Sivaraj, 485/A3, Sri Bannariamman Industry, Nadhipalayam, Kullampalayam PO, Gobichettipalayam-638 476. v. The ITO, Ward-2(1), Erode. [PAN: APNPS 0117 A] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/ Appellant by : Mr. N.C. Ravikrishna, Advocate ᮧ᭜यथᱮ कᳱ ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवाईकᳱतारीख/Date of Hearing : 15.07.2025 घोषणाकᳱतारीख /Date of Pronouncement : 21.07.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeal)/NFAC, (in short ‘the Ld.CIT(A)’), Delhi, dated 13.03.2025 for the Assessment Year (in short ‘AY’) 2017-18. 2. The brief facts of the case are that the assessee is an Individual and is the proprietor of business by named Sri Bannari Amman Industry in Printed from counselvise.com ITA No.1342/Chny/2025 (AY 2017-18) N.S. Sivaraj :: 2 :: which he doing Purchase of Coconut shells and converting it to powder and sell the Coconut shell powder. For the relevant Asst. year under consideration the assessee did file his Return of income (RoI) and was fled belatedly. The Assessing Officer (AO) did not accept the Return for the reason being it was fled very late and hence, it was considered as not fled at all for the relevant assessment year. Along with the RoI the assessee had fled the Profit & Loss account and the Balance Sheet also. While the Department had information regarding the assessee’s Bank account and the transactions in the Bank account, however, could not relate the same with the RoI for the reason being the RoI was considered as not filed at all. Hence, in order to know the sources of the Bank deposits and also to know about the assessee’s business nature and transactions, couple of notices under section 142 was served which was not responded by the assessee. As there was no response by the assessee for the notices, the Department chose to complete the assessment u/s.144. For this also, there was no response from the assessee and hence, the assessment was completed u/s.147 r.w.s. 144 r.w.s. 144B on 22.09.2021. Consequent to the order, there is an order u/s.154 r.w.s. 147 by the Department for the enhancement of levy of interest u/s.234A dated 29.11.2023. However, the ld. CIT(A) dismissed the appeal on the ground of rejection of petition for condonation of delay. There was ‘825’ days delay in filing the appeal. In this regard, assessee Printed from counselvise.com ITA No.1342/Chny/2025 (AY 2017-18) N.S. Sivaraj :: 3 :: has filed Medical Certificate stating that he had infected sever Corona and he was advised by the Doctor to follow up treatment till October, 2021. 3. Aggrieved, assessee is in appeal before us. 4. Before the ld. Counsel for assessee submitted that the ld. CIT(A) has not properly considered the reasons given in the Form 35. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 5. Though we some extent concur with the submissions of Ld.DR, Ms. Gauthami Manivasagam, JCIT, however, keeping in mind the reasons given, we are of the view that the delay in filing appeal before the ld.CIT(A) is a sufficient cause. Hence, we direct the ld.CIT(A) to condone the delay in filing appeal and hear the appeal on merits. Needless to say, that the ld.CIT(A) will follow the principle of natural justice and grant opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the Ld. CIT(A) for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is Printed from counselvise.com ITA No.1342/Chny/2025 (AY 2017-18) N.S. Sivaraj :: 4 :: directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. 6. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced on the 21st day of July, 2025, in Chennai. Sd/- (जगदीश) (JAGADISH) लेखा सद᭭य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िगįर) (MANU KUMAR GIRI) ᭠याियक सद᭭य/JUDICIAL MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated: 21st July, 2025. TLN, Sr.PS 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF Printed from counselvise.com "