PANDHIYARAJHUN NAVNITHKRISHNAN,THENI V. DCIT WARD 1, THENI

ITA 3306/CHNY/2024

AI Insights

The case involves Pandhiyarajhun Navnithkrishnan, an individual engaged in real estate, who appealed against the order of the CIT(A) which upheld the addition made by the Assessing Officer regarding the profit earned from the sale of agricultural land. The Assessing Officer had reopened the assessment under section 147 of the Income-tax Act, 1961, due to non-filing of the return of income for the relevant assessment year, despite the assessee having sold land at a significant profit. The CIT(A) upheld the addition, leading to the current appeal. The Tribunal found that the assessee was not given a proper opportunity to present his case at the CIT(A) level and thus remitted the case back for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107255 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: A.G.SATHYANARAYANA
• Keywords: Set aside; Principle of natural justice
• Section: 148; 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3306/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2014-15 Pandhiyarajhun Navnithkrishnan, 465-A 1 New 375, AVR Compound, Nehruji Road, Theni – 625 531. Vs. The Dy. Commissioner of Income Tax, Ward-1, Theni. [PAN: ANKPN 4466A] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri A.G.Sathyanarayana, Advocate IJथG की ओर से /Respondent by : Ms. R.Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 11.03.2025 घोषणा की ता रीख /Date of Pronouncement : 12.03.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2014-15 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.10.2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 147 of the Income-tax Act, 1961 (hereinafter “the Act”) on 30.12.2017. ITA No.3306/Chny/2024 :- 2 -: 2. There is a delay of 359 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 assessee is an individual engaged in the business of Real Estate along with his father Shri T.Pandirajan. The assessee did not file his return of for the relevant Assessment Year. The A.O Based on information that the assessee sold a land at Rs. 50,30,000/- on 16.08.2013, which he had purchased at Rs. 4,95,000/-, but not filled return of income hence, reopened the assessment u/s. 147 of the Act . In response to notice u/s. 148 of the Act, the assessee has filed his return of income on 16.10.2017, showing income of Rs. 3,19,670/- and agricultural income of Rs.3,05,567. The A.O made addition of Rs.31,20,000/- as profit earned from the sale of land as assessee was engaged in the business of land dealing. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). On appeal, the Ld. CIT(A) upheld the addition made by the A.O. ITA No.3306/Chny/2024 :- 3 -: 4. The Ld. Authorized Representative (A.R) of the assessee has submitted that the land purchased and sold was agriculture land, therefore the gain is not amenable to income tax. The Ld A.R further submitted that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) to explain the case , therefore, the case may be remitted back to the Ld. CIT(A) for fresh consideration in interest of justice. 5. The Ld. Departmental Representative has relied on the orders of the authorities below. 6. We have heard the rival submissions, and perused the materials available on record. We find that Ld. CIT(A) have passed the orders without giving proper opportunity to the assessee. We are therefore 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. ITA No.3306/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 12th March, 2025. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 12th March, 2025. 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 "