PANEERSELVAM SUBRAMANIAM,CHENNAI V. ITO, NCW-5(1), CHENNAI

ITA 612/CHNY/2025

AI Insights

The case involves an appeal by Paneerselvam Subramaniam against an ex-parte assessment order passed by the Assessing Officer under sections 147, 144, and 144B of the Income-tax Act, 1961, for the Assessment Year 2016-17. The Assessing Officer had reopened the assessment due to the assessee's failure to file a return of income despite purchasing immovable property worth Rs. 52,50,000. The ex-parte order assessed the income at Rs. 52,50,000 as unexplained investment in the property. The assessee's appeal to the CIT(A) was dismissed as not maintainable due to non-filing of the return and non-payment of advance tax, as required under section 249(4) of the Act. The Tribunal found that the assessee was not provided an adequate opportunity to be heard and thus remitted the matter back to the CIT(A) for a proper hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312881 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M.P. GURUPRASAD
• Keywords: Set aside; Opportunity of being heard; Unexplained investment
• Section: 147; 144

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.612/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2016-17 Paneerselvam Subramaniam, No.476, Kattbomman Street, Vysarpadi, Chennai – 600 039. [PAN: AYEPP 4808K] Vs. The Income Tax Officer, Non Corporate Ward-5(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : None HIथF की ओर से /Respondent by : Shri M.P.Guruprasad, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 23.04.2025 घोषणा की ता रीख /Date of Pronouncement : 30.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 28.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) dated 23.10.2023. ITA No.612/Chny/2025 :- 2 -: 2. When the appeal was taken up for hearing, none appeared on behalf of the assessee. Accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Mr. M.P. Guruprasad, Addl. CIT. 3. The A.O has reopened the assessment for the reason that assessee has purchased immovable property of Rs. 52,50,000/-, but had not filed return of income. The A.O in the ex-parte order passed u/s. 147/144 of the Act has assessed income at Rs.52,50,000/- by making addition on account of unexplained investment in the said property as the assessee has not responded to the notices issued. Aggrieved by this addition, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) dismissed the appeal as not maintainable for the reason that the assessee has not filed the return of income and not paid an amount of advance tax that was payable, as required u/s. 249(4) of the Act. The assessee is in appeal against the order as huge tax burden has been fastened by the ex-parte order passed by the A.O. 4. The Ld. Departmental Representative (DR), has stated that assessee has been negligent before the A.O and has not paid the advance tax , therefore the Ld. CIT(A) order be confirmed. ITA No.612/Chny/2025 :- 3 -: 5. We have perused the materials available on record and find that assessment order has been ex-parte making addition of Rs.52,50,000/- and the Ld. CIT(A) has not adjudicated the appeal and dismissed the appeal as not maintainable. We are of opinion that assessee should be provided an opportunity of being heard in the interest of justice. Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter to his file with a direction to provide proper opportunity of being heard. We also direct the assessee to make an application as per Proviso to Section 249(4) of the Act and comply with the notices being issued by the Ld. CIT(A). In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th April, 2025. 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: 30th April, 2025. EDN/- ITA No.612/Chny/2025 :- 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 "