POONGAVANAM ELUMALAI, CHENNAI,CHENNAI V. ITO, NON CORPORATE WARD -9(1), CHENNAI, CHENNAI

ITA 3375/CHNY/2025

AI Insights

The case involves Poongavanam Elumalai, the appellant, who did not file a return of income for the Assessment Year 2018-19. The Income Tax Officer (ITO) received information about substantial cash deposits and other income receipts during the demonetization period, leading to a reopened assessment. The ITO made significant additions to the assessee's income under various sections of the Income Tax Act, 1961. The assessee's appeal to the CIT(A) was initially dismissed due to a delay of 654 days, but the Tribunal found merit in reconsidering the case, citing the assessee's medical issues as a reason for the delay.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826509 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2018-2019
• Appeal Filed On: 21-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LATCHANA
• Assessee Lawyers: G. AKASH
• Keywords: Condonation of delay; Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0015ी यस यस िव\u0018ने\u001a रिव, ा ियक सद एवं सु\u0015ी प ा वित यस, लेखा सद क े सम$ BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3375/Chny/2025 िनधा %रण वष% /Assessment Year: 2018-19 Poongavanam Elumalai, No.78, Housing Board, Dr Santhosh Nagar, Egmore, Chennai – 600 008. PAN: AALPE 4946L Vs. The Income Tax Officer, Non Corporate Ward-9(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ( की ओर से/ Assessee by : Mr. G. Akash, Advocate *+थ( की ओर से /Respondent by : Ms. Latchana, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.12.2025 घोषणा की ता रीख /Date of Pronouncement : 07.01.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 ( in short \"the Act\") dated 08.10.2025 for Assessment Year (AY) 2018-19. 2. The assessee is an individual and did not file a return of income for A.Y 2018-19. The A.O received information that the assessee has deposited cash to the tune of Rs. 1,08,99,000/- into the bank account during the demonetization period and contractual receipts Rs.3,09,375/- and commission Printed from counselvise.com ITA No.3375/Chny/2025 Poongavanam Elumalai :- 2 -: receipts of Rs. 25,425/-. The A.O reopened the assessment and called on the assessee to furnish the various details. Since, the assessee did not appear nor responded to the notices, the A.O completed the assessment u/s. 147 r.w.s 144 of the Act, making an addition of Rs. 1,08,99,000/- u/s. 69A of the Act and an addition on account of estimated profit to the tune of Rs.27,21,432/- and undisclosed commission income of Rs.25,425/-. Aggrieved, the assessee filed further appeal before the CIT(A). 3. There was delay of 654 days in filing the appeal before the CIT(A). The CIT(A) held that the appeal is not admitted and dismissed in limine. However, the CIT(A) proceeded to decide the case on merits whereby he has confirmed the various additions made by the A.O. 4. We have heard the both the parities, perused the material available on record. We notice from the perusal of the order of the CIT(A) that the assessee had filed a petition for condonation of delay stating that the assessee is suffering from various medical issues and could not attend to his business regularly. It if further noticed that the assessee has submitted the medical record pertaining to the ailments of the assessee before the CIT(A). However, we notice that the CIT(A) has dismissed the appeal in limine on the ground that there is no sufficient cause. Considering the facts and circumstances peculiar to the assessee's case, we are inclined to give one more opportunity to the assessee in the interest of natural justice and fair play. Accordingly, we are remitting the appeal back to the CIT(A) with a direction to condone the delay and decide the appeal afresh in accordance with law considering all the grounds raised by the assessee. The assessee is directed to submit the required Printed from counselvise.com ITA No.3375/Chny/2025 Poongavanam Elumalai :- 3 -: details as may be called for and cooperate with the appellate proceedings. It is ordered accordingly. 5. Further, we also levy a cost of Rs.5,000/- (Five thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. 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 CIT(A). 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 07th day of January, 2026 at Chennai. Sd/- Sd/- (यस यस िव\u0018ने\u001a रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (प ा वित यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated 07th January, 2026. EDN, Sr. P.S आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "