PANIMAYAM JESURAJA,PUDUKOTTAI V. ITO, CIRCLE-2(1), TRICHY

ITA 1318/CHNY/2025

AI Insights

The case involves two appeals by the assessee, Panimayam Jesuraja, against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment years 2013-14 and 2015-16. The primary issue in both appeals was the dismissal of the assessee's appeals by the CIT(A) due to non-compliance with hearing notices and failure to provide documentary evidence. The Assessing Officer had previously treated certain amounts as unexplained money and added them to the assessee's income. The Tribunal noted the assessee's lack of assistance in the earlier proceedings but decided to remand the matter back to the Assessing Officer, emphasizing the need for a fair opportunity for the assessee to present his case, conditioned upon the payment of costs.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708184 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: E.PAVUNA SUNDARI; V.SUPRAJA
• Assessee Lawyers: HITESH
• Keywords: Business expenditure
• Section: 147; 148; 144; 142(1); 133(6); 139

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. Nos.1317 & 1318/Chny/2025 िनधाŊरण वषŊ/Assessment Years: 2013-14 & 2015-16 Panimayam Jesuraja, 55, Kallusanthu Aranthangi, Radhanallur B.O., Pudukottai 614 616. [PAN:AUPPJ9253R] Vs. The Income Tax Officer, Circle 2(1), Trichy/Tanjore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Hitesh, Advocate for Shri D. Anand, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. E. Pavuna Sundari, CIT & Ms. V. Supraja, Addl.CIT सुनवाई की तारीख/ Date of hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 17.07.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against separate orders dated 17.03.2025 and 19.03.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment years 2013-14 and 2015-16 respectively. 2. Since issues raised in both the appeals are similar based on the same identical facts, with the consent of both the parties, we proceed to I.T.A. Nos.1317 & 1318/Chny/25 2 hear the appeals together and pass consolidated order for the sake of convenience. 3. First, we shall take appeal in ITA No. 1317/Chny/2025 AY 2013-14 for adjudication. 4. The assessee raised 10 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in dismissing the appeal in the given facts and circumstances of the case. 3. Brief facts emanating from record are that the assessee is an individual and derived income from other sources i.e., interest income during the year under consideration. According to the Assessing Officer, the assessee did not file return of income under section 139 of the Income Tax Act, 1961 [“Act” in short]. Accordingly, the Assessing Officer issued notice under section 148 of the Act. In response to the notice, the assessee filed his return of income on 20.08.2021 declaring total income of ₹.2,09,770/-. After following due procedure, the Jurisdictional Assessing Officer passed order under section 148A(d) of the Act dated 29.06.2022 and issued notice under section 148 of the Act on 29.06.2022, against which, the assessee did not file return of income. I.T.A. Nos.1317 & 1318/Chny/25 3 Thereafter, the Assessing Officer issued various notices under section 142(1) of the Act, show-cause notice under section 144 of the Act, Central communication letter by NaFAC dated 10.04.2023 and show- cause notice under section 144 of the Act dated 20.04.2023. However, the assessee did not file any response to the above notices. After obtaining bank statement under section 133(6) of the Act, the Assessing Officer noted total credit at ₹.5,56,88,255/- in his ICICI bank account from various entities. Since the assessee could not explain with documentary evidences, the Assessing Officer treated the same as unexplained money under section 69A of the Act and added to the total income of the assessee. Further, on verification of the ITR filed by the assessee on 20.08.2021, the Assessing Officer noted that the assessee has not carried out any business activities, but, the assessee has shown total income of ₹.4,16,100/- in credit side of his P & L account as interest received and claimed total business expenses of ₹.1,56,868/- in debit side of P & L account. Since the assessee has not carried out any business activities, the Assessing Officer treated the same as income from other sources, added to the total income of the assessee as well as disallowed the claim of business expenses of ₹.1,56,868/- and added to the total income and completed the assessment under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 05.05.2023. On appeal, the ld. CIT(A) I.T.A. Nos.1317 & 1318/Chny/25 4 dismissed the appeal of the assessee since the assessee did not comply with the hearing notices or filed any documentary evidences in support of grounds of appeal. 4. The ld. AR Shri Hitesh, Advocate submits that non-compliance to the hearing notices issued by the ld. CIT(A) is neither wilful nor deliberate but due to circumstances beyond assessee’s control. The ld. AR brought on record an affidavit, wherein, the assessee undertakes to provide full and utmost cooperation before the Assessing Officer and prayed that, one more opportunity may be afforded to the assessee to substantiate his claim before the Assessing Officer. 5. The ld. DR Ms. E. Pavuna Sundari, CIT objected the same and submits that if at all this Tribunal intends to afford one more opportunity to the assessee, that should be by way of cost as the assessee totally failed to prosecute its case before the Assessing Officer and the ld. CIT(A) inspite of ample opportunities afforded to the assessee. 6. Having considered the submissions of the ld. AR and ld. DR, we note that the Assessing Officer completed the assessment under section 147 r.w.s. 144 r.w.s. 144B of the Act by making various additions in the absence of explanation with documentary evidences. We find that there I.T.A. Nos.1317 & 1318/Chny/25 5 is no assistance from the assessee before the Assessing Officer and the ld. CIT(A). As there is no assistance from the assessee, taking into account the undertaking given by the assessee that the assessee is ready to appear and prosecute its case, in the interest of justice, we deem it proper to remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.25,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions / documentary evidences as may be filed by the assessee to substantiate its claim. In any case, the assessee fails to appear before the assessing authority, it is open to the Assessing Officer to complete the assessment based on the material available on record and to pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. I.T.A. No. 1318/Chny/2025 FY 2015-16 7. We note that the Assessing Officer completed the assessment for AY 2015-16 under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 25.05.2023 by making various additions in the absence of explanation with documentary evidences. We find that there is no assistance from the assessee before the Assessing Officer and the ld. CIT(A). As there is no I.T.A. Nos.1317 & 1318/Chny/25 6 assistance from the assessee, considering the undertaking given by the assessee that the assessee is ready to appear and prosecute its case, in the interest of justice, we deem it proper to remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.5,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions / documentary evidences as may be filed by the assessee to substantiate its claim. In any case, the assessee fails to appear before the assessing authority, it is open to the Assessing Officer to complete the assessment based on the material available on record and to pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced on 17th July, 2025 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 17.07.2025 I.T.A. Nos.1317 & 1318/Chny/25 7 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "