PACHAMUTHU SIVAKUMAR,NAMAKKAL V. ITO, WARD-2, NAMAKKAL

ITA 255/CHNY/2025

AI Insights

The case involves Pachamuthu Sivakumar, who operates a poultry farm and was assessed for the Assessment Year 2017-18. He deposited Rs. 21,73,000 in Specified Bank Notes during the demonetization period, which the Assessing Officer (AO) added as income, not accepting the explanation that it was business receipts. The CIT(A) upheld this addition in an ex-parte order. The assessee appealed to the Income Tax Appellate Tribunal, which noted procedural lapses and the impact of COVID-19 on the assessee's ability to respond, leading to the decision to remit the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107230 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Set aside; Business income; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.255/Chny/2025 िनधा7रण वष7 /Assessment Year: 2017-18 Pachamuthu Sivakumar, 3/389, Gandhipuram, Vasantha Nagar, Senthamangalam, Namakkal – 637 409. Vs. The Income Tax Officer, Ward-2, Namakkal. [PAN: CGQPS 2683M] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri S. Sridhar, Advocate (Erode) GHथ की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 19.03.2025 घोषणा की तारीख /Date of Pronouncement : 26.03.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 15.12.2023 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 21.12.2019. ITA No.255/Chny/2025 :- 2 -: 2. There is a delay of 335 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating that the delay was due to an incorrect email ID provided in Form-35, which resulted in the assessee being unaware of the dismissal of 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 assessee is an individual and engaged in the poultry farm in the name and style M/s GKP Suguna Broilers. The assessee has deposited cash of Rs. 21,73,000/- in Specified Bank Notes (SBNs) in his bank account during demonetization period. The assessee has explained that the source of cash deposits as business receipts and submitted copy of books of account in support. However, the A.O did not accept the assessee’s explanation and passed assessment order u/s.143(3) of the Act, making addition of cash deposits of Rs.21,73,000/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). However, the Ld. CIT(A) passed order ex-parte upholding addition made by the A.O. ITA No.255/Chny/2025 :- 3 -: 4. The Ld. Authorized Representative (A.R) of the assessee ha submitted that the assessee is not well educated and most of the notices were issued during demonetization period and therefore, one more opportunity may be provided to substantiate his claim before the Ld. CIT(A) in the interests of justice. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. We find that four notices were issued during covid period and Ld. CIT(A) had passed ex parte order. We, therefore are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee allowed for statistical purposes only. ITA No.255/Chny/2025 :- 4 -: 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th March, 2025. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th March, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "