PALANI SELVAM SHUNMUGA ANANTH,TUTICORIN V. ITO, WARD-2 TUTICORIN, TUTICORIN

ITA 2172/CHNY/2024

AI Insights

The case involves an appeal by Palani Selvam Shanmuga Ananth against the orders of the A.O and CIT(A) concerning the assessment year 2015-16. The A.O had reopened the assessment due to unexplained cash deposits and non-filing of income tax returns by the assessee, leading to additions and income estimation. Both the A.O and CIT(A) passed ex-parte orders due to non-compliance by the assessee. The Tribunal, considering the principles of natural justice and previous similar cases, decided to remand the case back to the A.O for a decision on merits, imposing costs on the assessee for non-compliance.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107278 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 21-10-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 16-08-2024
• Other Referred Cases: ITA No.1871/Chny/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: S. SRIDHAR
• Keywords: Set aside; Principle of natural justice
• Section: 68

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी महा वीर िसंह, उपा \u001f एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2172/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2015-16 Palani Selvam Shanmuga Ananth, 2A, Jayaraj Road, Tuticorin – 628 002. [PAN: AHQPA 4868B] Vs. The Income Tax Officer, Ward-2, Tuticorn. (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri S. Sridhar, Advocate IJथG की ओर से /Respondent by : Ms. R. Anita, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 21.10.2024 घोषणा की ता रीख /Date of Pronouncement : 21.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee is against the order of Learned Commissioner of Income Tax, Appeal, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 15.12.2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s.147 r.w.s 144 r.w.s 144B of the Income Tax Act, 1961 (hereinafter “the Act”) on 23.12.2016. ITA No.2172/Chny/2024 :- 2 -: 2. There is a delay of 33 days in filing the appeal by the assessee. The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition 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 condoned accordingly. 3. The only effective ground of appeal in this appeal of assessee is against exparte order passed by Ld. CIT(A) confirming the addition of cash deposit of Rs. 7,06,000/- in the bank account and further estimating the income @ 8% of total turnover at Rs. 21,22,018/-. 4. The assessee is an individual engaged in the business of processing, segregating and mixing of minerals through mechanical separation using magnets. The A.O has reopened assessment on the ground that there was a cash deposit in bank account of Rs. 7,06,000/, bill of entry for imports of Rs. 3,41,47,920/- and shipping bills for exports of Rs. 2,47,22,447/- but the assessee has not filed return of income. The assessee has not complied with the notices issued, and the A.O accordingly, passed order u/s. 144 of the Act making addition on cash deposit of Rs. 7,06,000/- as unexplained cash u/s. 68 of the ITA No.2172/Chny/2024 :- 3 -: Act and estimating the income @ 8% of the total turnover of Rs. 2,65,25,223/-. The assessee before Ld. CIT(A) has also not complied with the notices issued and therefore, the Ld. CIT(A) has confirmed the addition made by the A.O. 5. Before us, The Ld. Authorized Representative (A.R) of the assessee has submitted the orders of A.O and the Ld. CIT(A) passed ex-parte and therefore, one more opportunity should be provided. The Ld. A.R also relied on the order of Co-ordinate Bench of This Tribunal in his own case in ITA No.1871/Chny/2024 for A.Y 2017-18 where in interest of justice case has been remanded back to AO. 6. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities and argued that the assessee has been non cooperating before A.O as well as Ld. CIT(A) and therefore, the appeal should be dismissed or cost should be imposed. 7. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that the both orders have been passed ex-parte for the ITA No.2172/Chny/2024 :- 4 -: non-compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. We 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 A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. However, considering the assessee’s failure to respond the notices issued by the lower authorities, we find appropriate to impose cost. Accordingly, the assessee is directed to pay the costs of Rs. 10000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. We also direct the Assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes. ITA No.2172/Chny/2024 :- 5 -: 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21st October, 2024. Sd/- Sd/- (महा वीर िसंह) (Mahavir Singh) उपा \u001f / Vice President (जगदीश) (Jagadish) ले ले ले लेखा खा खा खा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 21st October, 2024. EDN/- आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "