NATESAN THANGARAJ,TRICHY V. ITO, WARD-3(3), TRICHY

ITA 1387/CHNY/2025

AI Insights

The case involves an appeal by Natesan Thangaraj against the order of the Income Tax Officer, Ward-3(3), Trichy, concerning the assessment year 2010-11. The Assessing Officer had reopened the assessment and added Rs.13,89,768 to the assessee's income from real estate business. The assessee's initial appeal was dismissed ex-parte by the CIT(A) due to lack of adequate documentation, which the assessee attributed to disruptions caused by the COVID-19 pandemic. The Tribunal found merit in the assessee's request for a re-hearing, considering the exceptional circumstances of the pandemic.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711403 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: M. KARUPPIAH
• Keywords: Set aside; Business income; 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 र, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1387/Chny/2025 िनधा ;रण वष; /Assessment Year: 2010-11 Natesan Thangaraj, No.123, High Ways Colony, Subramaniapuram, Trichy – 620 020. [PAN: ACAPT 0693G] Vs. The Income Tax Officer, Ward-3(3), Trichy. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथG की ओर से/ Appellant by : Shri M. Karuppiah, FCA IJथG की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 25.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2010-11 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 19.06.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) on 21.12.2017. Printed from counselvise.com ITA No.1387/Chny/2025 Natesan Thangaraj :- 2 -: 2. There is a delay of 622 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit 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 hereby condoned. 3. The A.O has reopened the assessment and made addition of Rs.13,89,768 in respect of real estate business income. Aggrieved by the said assessment, the assessee preferred an appeal before the ld. CIT(A). On appeal, the Ld. CIT(A) had dismissed the appeal ex-parte as the assessee failed to provide adequate corroborative documentation . 4. At the outset, the Ld. Authorized Representative has submitted that two notices were issued by the Ld. CIT(A) during Covid period due to which the assessee was unable to comply with them and thereafter, the assessee could not track the proceedings. It was therefore prayed that one more opportunity be granted to the assessee to substantiate his case. Printed from counselvise.com ITA No.1387/Chny/2025 Natesan Thangaraj :- 3 -: 5. On the other hand, the Ld. Departmental Representative (DR), 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 the Ld. CIT(A), it is observed that the Ld. CIT(A) upheld the order of A.O solely on the ground that the assessee has not been made any submission during appellate proceedings. Before us, the Ld. A.R reiterated that the notices were issued during Covid period and therefore, assessee could not comply with the same. In the interest of justice and keeping in view the principles of natural justice, we are of the opinion that the assessee should be provided with another opportunity of hearing to substantiate his claim before the Ld. CIT(A). Accordingly, we set aside the order of Ld. CIT(A) and remit the matter back to his file for fresh adjudication in accordance with law. The assessee is also directed to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for proper consideration of his case. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.1387/Chny/2025 Natesan Thangaraj :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th day of July, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (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: 25th July, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "