AI Insights
The case involves an appeal by Palraj Balaji against the order of the Learned Commissioner of Income Tax (Appeals), Delhi, which was based on an assessment framed by the Assessing Officer under sections 147, 144, and 144B of the Income-tax Act, 1961. The assessment was reopened due to unreported cash deposits amounting to Rs. 56,96,100 made by the assessee during the financial year 2018-19, for which no return of income was filed. The Assessing Officer completed the assessment ex-parte, adding the entire amount to the assessee's income. The CIT(A) upheld this addition without adjudicating on merits, citing non-compliance by the assessee to the notices issued. The Tribunal found that the CIT(A) had confirmed the addition without proper adjudication on merits and thus remitted the matter back to the Assessing Officer.
Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 668435 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
26-06-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2018-2019
Judgement Text
"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1158/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2018-19 Palraj Balaji, No.436, Flat No.2, Ground Floor, Brindvan Flats, Dr Ramasamy Salai KK Nagar, Chennai – 600 078. [PAN: AXHPB 7072P] Vs. The Income Tax Officer, Non Corporate Circle-19(4), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri Y. Sridhar, C.A HIथF की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 27.03.2025 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”) dated 22.03.2023. ITA No1158/Chny/2025 Palraj Balaji :- 2 -: 2. The assessee had made cash deposits amounting to Rs. 56,96,100/- during the relevant financial year but had not filed the return of income. Consequently, the A.O reopened the assessment and completed the assessment ex-parte u/s. 147 r.w.s 144 and 144B of the Act, making an addition of Rs. 56,96,100/-. Aggrieved against the addition, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) passed order ex-parte without adjudicating the issue on merits as the assessee has not made compliance to the notices issued. 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the Ld. CIT(A) had passed order ex-parte without adjudicating the issue on merits therefore, one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A). 5. On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex-parte as the assessee has been non compliance to the notices issued. ITA No1158/Chny/2025 Palraj Balaji :- 3 -: 6. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the addition of cash deposits amounting to Rs.56,96,100/- u/s. 69A of the Act, due to the non- compliance of the assessee, without adjudicating the issue on merits. 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 decide the appeal on merits. The A.O shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the A.O on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 26th June, 2025. EDN/- ITA No1158/Chny/2025 Palraj Balaji :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "
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