PONNAIAN LAZAR,CHENNAI V. ITO, NCW-22(1), TAMBARAM

ITA 227/CHNY/2025

AI Insights

The case involves Ponnaian Lazar, who engaged in selling non-judicial stamp paper and reported a total income of Rs. 4,83,240 for the Assessment Year 2017-18. During the demonetization period, he deposited Rs. 21,23,300 in cash, which he claimed were collections from stamp paper sales. The Assessing Officer did not accept this explanation and added Rs. 15,79,510 to his income under section 69 of the Income-tax Act, 1961. The CIT(A) upheld this addition ex-parte due to lack of proper evidence from the assessee. The Tribunal found that the assessee was not given sufficient opportunity to present his case at both the AO and CIT(A) levels, leading to the decision to remit the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107226 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: ABHISHEK MURALI; C.A VIRTUAL
• Keywords: Set aside; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.227/Chny/2025 िनधा8रण वष8 /Assessment Year: 2017-18 Ponnaian Lazar, D. No.213, Vidhuthalai Nagar, 8th Street, Sunnambhu Kollathur, Chennai – 600 114. Vs. The Income Tax Officer, Non Corporate Ward-22(1), Tambaram. [PAN: AJGPL 5164P] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri Abhishek Murali, C.A (virtual) GHथ की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 24.03.2025 घोषणा की तारीख /Date of Pronouncement : 26.03.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 27.09.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 13.12.2019. ITA No.227/Chny/2025 :- 2 -: 2. There is a delay of 58 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 and engaged in selling non judicial stamp paper of Government of Tamilnadu. The assessee has filed return of return of income by declaring total income of Rs. 4,83,240/-. Assessee has deposited cash of Rs. 21,23,300/- in his bank account during demonetization period. The assessee explained the cash deposits as collections from the sale of stamp papers , but the A.O did not accept the assessee’s explanation and passed assessment order u/s.143(3) of the Act, making addition of cash deposits of Rs.15,79,510/- u/s. 69 of the Act. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) passed order ex-parte confirming the addition as assessee has not find proper evidence along with petition under Rule 46 . 4. The Ld. Authorized Representative (A.R) of the assessee has contended that sufficient opportunity was not provided to the assessee ITA No.227/Chny/2025 :- 3 -: either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore, the case may be remitted back to the Ld. CIT(A) for fresh consideration in interests of justice. 5. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. We note the Ld. CIT(A) has passed the orders ex parte as assessee has not made any written submission despite being given several opportunities. 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 Ld. CIT(A) subject to payment of costs of Rs.10,000/-. 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 Ld. CIT(A). 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 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 and furnish complete details for fresh consideration. In view ITA No.227/Chny/2025 :- 4 -: 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 March, 2025. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 26th March, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "