NATESAN,NAMAKKAL V. ITO, WARD-2, TIRUCHENGODE

ITA 3159/CHNY/2024

AI Insights

The case involves an appeal by the assessee, Natesan, against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2011-12. The assessee had deposited a total of Rs. 25,43,158 in cash into his bank account, which was treated as unexplained money under section 69A of the Income Tax Act by the Assessing Officer after the assessee failed to respond to notices. The CIT(A) also dismissed the appeal ex-parte due to non-compliance with notices. The Tribunal found that the lower authorities had not provided a proper opportunity to the assessee, leading to the decision to remit the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107161 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAMI MANIVASAGAM
• Assessee Lawyers: T.S. LAKSHMI VENKATARAMAN
• Section: 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी एस. आर. रघुना था , लेखा सद+ क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3159/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2011-12 Natesan, No.7, Adikadu, Vediyarasampalayam Road, Pallipalayam, Namakkal – 638 006. [PAN: ALSPN 9344D] Vs. The Income Tax Officer, Ward-2, Tiruchengode. (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थH की ओर से/ Appellant by : Shri T.S. Lakshmi Venkataraman, FCA JKथH की ओर से /Respondent by : Ms. Gauthami Manivasagam, JCIT सुनवा ई की ता रीख/Date of Hearing : 18.02.2025 घोषणा की ता रीख /Date of Pronouncement : 20.02.2025 आदेश / O R D E R PER S.R. RAGHUNATHA, A.M : 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, [hereinafter “CIT(A)”] for the assessment year 2011-12, vide order dated 14.11.2024. 2. The brief facts of the case are that the assessee deposited cash of Rs. 10,20,000/- in his savings bank account and also made time ITA No.3159/Chny/2024 :- 2 -: deposits with City Union Bank Ltd., Pallipalayam Branch, but did not file a return of income for the relevant A.Y. 2011-12. Upon reviewing the entries in the bank statement, it was noticed that the total cash credits in the bank account amounted to Rs. 25,43,158/-. The A.O therefore reopened the assessment by issuing a notice under section 148 of the Act. However, the assessee neither filed a return of income in response to the notice nor complied with the notices issued during the assessment proceedings. The AO, therefore, passed an ex-parte order, treating the entire cash deposits of Rs. 25,43,158/- in the bank account as unexplained money under section 69A of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). On appeal, the Ld. CIT(A) issued notices from 12.01.2020 to 05.11.2024, but there was no compliance with the notices. Therefore, the Ld. CIT(A) also dismissed the appeal of the assessee ex-parte. 3. The Ld. Counsel for the assessee prayed for setting aside the order of the Assessing Officer for re-adjudication, since the case was not prosecuted before the Assessing Officer and the same has been confirmed by the Ld. CIT(A) without any discussion. ITA No.3159/Chny/2024 :- 3 -: 4. Per contra, the Ld. DR relied on the orders of the lower authorities and prayed for confirming the impugned order. 5. We have heard both the parties and gone through the order of the lower authorities below. It is noted that the AO and that of the Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. Therefore, to meet the ends of justice, we remit the matter back to the file of the AO for denovo adjudication. We also direct the assessee to appear before the AO and at liberty to submit the relevant details before the AO for adjudication of the case. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th February, 2025. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (एस. आर. रघुना था ) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th February, 2025. EDN/- ITA No.3159/Chny/2024 :- 4 -: 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 "