NATARAJ SHANMUGAVEL,DINDIGUL V. DCIT, WARD-1, DINDIGUL

ITA 329/CHNY/2025

AI Insights

The case involves an appeal by Shri Nataraj Shanmugavel against the order of the Commissioner of Income Tax (Appeals) dated 26.10.2024 for the Assessment Year 2014-15. The primary issue arose from the AO's ex-parte order treating cash deposits of Rs.1,21,03,301 as unexplained money under section 69A of the Income Tax Act, due to the assessee's failure to provide evidence substantiating the source of these deposits. The CIT(A) upheld the AO's decision after the assessee failed to appear or submit any written submissions. The Tribunal, considering the circumstances of the COVID-19 pandemic during which the notices were issued, decided to remit the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126067 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: A.G. SATHYANARAYANAN
• Keywords: Set aside; Opportunity of being heard
• Section: 144; 143(2)

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.329/Chny/2025 (िनधा\u0005रण वष\u0005 / Assessment Year: 2014-15) Shri Nataraj Shanmugavel, 2A, EVR Salai, West Govindhapuram, Dindigul-624 001. Vs The DCIT, Ward-1 Dindigul. PAN : EHVPS-9432-L (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr. A.G. Sathyanarayanan, Advocate (Virtual) \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Ms. Anitha, Addl.CIT सुनवाईक\bतारीख/Date of hearing : 23.04.2025 घोषणाक\bतारीख /Date of Pronouncement : 24.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against the order of the Ld. Ld. Commissioner of Income Tax (Appeals)(NFAC) Delhi [CIT(A)] dated 26.10.2024 for Assessment Year 2014-15. 2. Brief facts of the case are that as per information available on record with the department, the assessee had made cash deposit of Rs.1,21,03,301/- during the year under consideration for AY 2014- 15. The case was reopened by issuing notice u/s.148 of the Act on 30.03.2021. In the absence of furnishing any evidence to prove cash deposits in the bank by the assessee, the AO proceeded to pass ex- parte order u/s.147 r.w.s 144 r.w.s 144B of the Act and treated the 2 ITA No.329/Chny/2025 whole cash deposits as unexplained money of the assessee u/s.69A of the Act. 3. Aggrieved the assessee challenged the assessment order before the CIT(A). However, despite several notices issued, the assessee neither filed written submissions nor appeared before the CIT(A) and hence, the CIT(A) confirmed order of the AO. Now, the assessee is in appeal before us. 4. We have heard rival submissions and perused records. From the assessment order, we note that notice u/s.148 of the Act was issued during Covid-19 Pandemic on 30.03.2021. Subsequently, notice u/s.142(1) was issued to the assessee on 10.03.2022. Even notice u/s.143(2) was issued on 28.02.2022. Being Covid-19 Pandemic period, notices u/s.142(1) and 143(2) were just issued within one month prior to completion of assessment on 24.03.2022. Hence, in the light of peculiar facts and taking into consideration the gravity of Covid-19 Pandemic prevailing at that point of time, in the interest of justice, we set aside the impugned order and remit back the matter to the file of AO for denovo adjudication, after providing reasonable opportunity of being heard to the assessee. All the legal issues in this appeal are kept open. 3 ITA No.329/Chny/2025 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 24th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date:24.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "