NAGAPPAGOUNDER CHANDRAPILLAI ,DHARMAPURI V. ITO, WARD-1, DHARMAPURI

ITA 2386/CHNY/2024

AI Insights

The case involves Nagappagounder Chandrapillai, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The primary issue arose from the addition of Rs. 18,90,480 as unexplained income due to cash deposits during the demonetization period, which the assessee failed to explain. The Assessing Officer initially passed an ex parte order under section 144 of the Income-tax Act, 1961, due to non-response from the assessee. The CIT(A) upheld this addition after multiple non-responses from the assessee. The Tribunal, considering the assessee's lack of participation and the procedural lapses, decided to remit the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472166 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 12-09-2024
• Other Referred Cases: Tin Box Company vs CIT, [2001] 249 ITR 216 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: A. NIKITHA
• Keywords: Set aside; Reasonable cause
• Section: 144; 69A

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी जॉजᭅ जॉजᭅ के, उपा᭟यᭃ एवं ᮰ी एस.आर.रघुनाथा, लेखा सद᭭य के समᭃ BEFORE SHRI GEORGE GEORGE K, HON’BLE VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2386/Chny/2024 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Nagappagounder Chandrapillai, 4/225, Morappur Main Road, Karimangalam Town & Post, Palacode Taluk, Dharmapuri – 635 111. [PAN: ALGPC-3089-C] v. Income Tax Officer, Ward -1, Dharmapuri – 636 704. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Ms. A. Nikitha, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. Shiva Srinivas, Addl. CIT सुनवाई कᳱ तारीख/Date of Hearing : 21.11.2024 घोषणा कᳱ तारीख/Date of Pronouncement : 22.11.2024 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 12.01.2024 and pertains to assessment year 2017-18. 2. At the outset, we find that there is a delay of 184 days in appeal filed by the assessee, for which petition for condonation of :-2-: ITA. No: 2386/Chny/2024 delay along with reasons for delay has been filed. The assessee stated that due to medical issues the assessee wasn’t aware of the notices sent. After considering the petition filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication. 3. The brief facts of the case are that, the assessee is an individual filed his return of income for the assessment year 2017- 18 on 28.08.2017, declaring a total income of Rs.3,24,950/- deriving income from retail business. The case was selected under CASS for the reason that the cash deposited during demonetization period was Rs.18,90,480/-. The Assessing Officer issued statutory notices to the assessee and the assessee had not filed any reply to the notices and hence, the Assessing Officer left with no option passed an order u/s. 144 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) dated 22.12.2019, by making an addition u/s. 69A r.w.s. 115BBE of the Act to the tune of Rs.18,9,480/- of cash deposits as unexplained income. Aggrieved, the assessee filed an appeal before the ld.CIT(A), NFAC. :-3-: ITA. No: 2386/Chny/2024 4. The ld.CIT(A) issued four opportunities to the assessee to file the submissions in support of the appeal filed from 25.02.2021 to 01.01.2024. However, the assessee did not respond or participate in assessment proceedings and hence, the ld.CIT(A) confirmed the additions made by the Assessing Officer by dismissing the appeal of the assessee. Aggrieved, the assessee preferred an appeal before us. 5. The ld.AR for the assessee stated that the assessee is carrying on the business of provisional stores in Maligai area and not used to the information technology and hence, could not take a note of notices sent through e-mail and the I.T. Portal and hence, prayed for setting aside the order of the ld.CIT(A) and give one more opportunity before the Assessing Officer, since the assessment order has been passed exparte. 6. Per contra, the ld.DR fairly accepted for remitting the issue back to the file of the Assessing Officer. 7. We have heard rival contentions and noticed that the assessment order was passed exparte and the ld.CIT(A) has also confirmed the same without the participation of the assessee in the appellate proceedings. In the facts and circumstances of the :-4-: ITA. No: 2386/Chny/2024 case, since the Assessing Officer has passed exparte order, we deem it fit to set aside the order of the ld.CIT(A) and remit the matter back to the file of the AO by relying on the decision of the Hon’ble Supreme Court in the case of Tin Box Company vs CIT, [2001] 249 ITR 216 (SC) and direct AO to denovo frame the assessment in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 22nd November, 2024 at Chennai. Sd/- (जॉजŊ जॉजŊ क े) (GEORGE GEORGE K) उपाȯƗ /VICE PRESIDENT Sd/- (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद˟/ACCOUNTANT MEMBER चे᳖ई/Chennai, ᳰदनांक/Dated, the 22nd November, 2024 JPV आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3.आयकर आयुƅ/CIT - Madurai 4. िवभागीय Ůितिनिध/DR 5. गाडŊ फाईल/GF "