N SRINIVASA CHETTIAR AND SONS AND P PCHANDRASEKARAN CHETTIAR,TIRUVARUR V. ITO WARD 1, TIRUVARUR, TIRUVARUR

ITA 2918/CHNY/2024

AI Insights

The case involves an appeal by N. Srinivasa Chettiar and Sons and PP Chandrasekaran Chettiar against the order of the Learned Commissioner of Income Tax, National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The appeal was initially delayed by 445 days due to the assessee's ill-health, supported by a medical certificate, which the Tribunal accepted as a sufficient cause for the delay. The Assessing Officer had made additions to the assessee's income on account of cessation of liabilities of defunct firms and unexplained cash credit, which the assessee contested. The CIT(A) dismissed the appeal due to non-compliance with notices, which the assessee attributed to a failure of communication by his C.A. The Tribunal, emphasizing the principles of natural justice, decided to provide another opportunity for the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107175 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Assessee Lawyers: SAMYUKTHA BANUSEKAR
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIR I, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2918/Chny/2024 िनधा :रण वष: /Assessment Year: 2015-16 N. Srinivasa Chettiar and Sons and PP Chandrasekaran Chettiar, 5, Good Shed Road, Thiruthuraipoondi, Tiruvarur – 614 713. Vs. The Income Tax Officer, Ward-1, Tiruvarur. [PAN: AAAFN 2271J] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथH की ओर से/ Appellant by : Ms. Samyuktha Banusekar, Advocate JKथH की ओर से /Respondent by : Ms. Pushpa Hemachand, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 27.06.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 27.12.2017. ITA No.2918/Chny/2024 :- 2 -: 2. There is a delay of 445 days in filing the appeal by the assessee. The assessee has filed condonation petition along with medical certificate in support of his contention that he was suffering from ill- health. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly. 3. The assessee is a dealer in Kerosene oil for supply in an around Tiruvarur and Thiruthuraipoondi and filed his return of income admitting income as ‘Nil’. The A.O in the order passed u/s. 143(3) of the Act has made addition of Rs. 62,66,646/- on account of cessation of liabilities of debt of defunct firms u/s. 41(1) of the Act and further addition of Rs. 70,691/- as unexplained cash credit. Aggrieved, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) has issued six notices, which remain non-complied by the assessee therefore, the Ld. CIT(A) has dismissed the appeal. 4. The Ld. Authorized Representative (A.R.) of the assessee has submitted that the assessee had given email of his C.A, who failed to inform the assessee, resulting in notices remaining un-complied with. ITA No.2918/Chny/2024 :- 3 -: Therefore,, one more opportunity may be provided in the interests of justice. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of Ld. CIT(A), we find that the order was passed ex-pare due to the non-compliance by the assessee. We are of the opinion that keeping in view the principles of natural justice, the assessee should be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law by passing reasoned order. We also direct the Assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. ITA No.2918/Chny/2024 :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st January, 2025. 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 "