PREAMRAJ NADAR KASIRAJAN,KANCHIPURAM V. INCOME TAX OFFICER, WARD 2, KANCHIPURAM

ITA 242/CHNY/2025

AI Insights

This case involves an appeal by Preamraj Nadar Kasirajan against the order of the Learned Commissioner of Income Tax (Appeals), which upheld the addition of Rs.24 lakhs as unexplained cash deposits under section 69A of the Income Tax Act, 1961. The original assessment was conducted ex parte under section 144 of the Act, where the Assessing Officer (AO) accepted the nature and source of Rs.6 lakhs of the total Rs.30 lakhs deposited but treated the remaining Rs.24 lakhs as unexplained. The Tribunal found the CIT(A)'s order to be cryptic and lacking a detailed discussion on the merits of the case, leading to the decision to set aside the CIT(A)'s order and remand the case back to the AO for a thorough examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 314272 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2025
• 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: ANITHA
• Assessee Lawyers: S. DWARAKESH
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी जगदीश, लेखा सद क े सम\u0015 BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.242/Chny/2025 िनधा\u000eरणवष\u000e/Assessment Year: 2017-18 Preamraj Nadar Kasirajan, No.11-D, Yathothakari North Mada Street, Kancheepuram-631 502. v. The ITO, Ward-2, Kancheepuram. [PAN: BGOPK 1088 D] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.S. Dwarakesh, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms.Anitha, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 19.03.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 05.05.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 27.05.2024 for the Assessment Year (hereinafter referred to as \"AY”) 2017-18. 2. At the outset, the Ld. Counsel for the assessee submitted that there is a delay of ‘181’ days in filing of this appeal; and explained the reason for cause of delay. Having gone through the facts which led to the ITA No.242/Chny/2025 (AY 2017-18) Preamraj Nadar Kasirajan :: 2 :: delay, we find that there was sufficient cause for the cause of delay and hence, we condone the delay of ‘181’ days and proceed to adjudicate the appeal on merits. 3. At the outset, the Ld.AR of the assessee drew our attention to the impugned order of the Ld.CIT(A) which we note it to be a cryptic/one page order wherein, the Ld.CIT(A) after acknowledging that the AO has passed an ex parte order u/s.144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) has justified such an action for non- participation from the part of the assessee and proceeded to uphold the action of the AO making an addition of Rs.24 lakhs [out of the total deposit of Rs.30 lakhs as unexplained u/s.69A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘)]. We note that the Ld.CIT(A) despite finding that AO had passed ex-parte assessment order, has not even bothered to ask assessee ‘as to why’ he didn’t participate in the assessment proceedings and simply confirmed the addition without looking into the merits of the contentions raised by the assessee to support the grounds of appeal. In this regard, the Ld.CIT(A) is noted to have passed cryptic order, confirming the addition made by the AO, and that too without discussing the merits of the addition, which impugned action of the Ld.CIT(A) can’t be accepted for the reason that the Ld.CIT(A) has confirmed the order of the AO without passing a speaking order. Therefore, we don’t countenance the action of the Ld.CIT(A). ITA No.242/Chny/2025 (AY 2017-18) Preamraj Nadar Kasirajan :: 3 :: Having said so, we take note that the assessment order has also been passed ex parte order qua assessee and in this regard, it has been brought to our notice that pursuant to the notice issued by the AO, the assessee is noted to have filed return of income (RoI) on 29.10.2019 returning an income of Rs.5,93,250/- and explained the source of the cash deposits of Rs.30 lakhs. According to the assessee, the cash deposits of Rs.30 lakhs was trade receipts. And the AO has accepted the assessee’s contention as to the nature and source of Rs.6 lakhs but treated the balance of Rs.24 lakhs as unexplained which action of the AO according to the Ld.AR is erroneous. According to the Ld.AR, the entire cash deposits of Rs.30 lakhs, the nature of deposits is same as that of Rs.6 lakhs, therefore, Rs.24 lakhs takes colour from the same as that of Rs.6 lakhs accepted by the AO and so, it can’t be treated differently. For buttressing his submissions, the assessee has filed the VAT Returns supporting the trade, which fact is found placed at Page Nos.31-159 of the Paper Book, which is a relevant document to support the claim of the assessee. Since the same has not been filed before the AO, in the interest of both the parties, we set aside the impugned order of the Ld.CIT(A) and restore the assessment back to the file of the AO for de- novo assessment to prove the nature and source of the balance amount of Rs.24 lakhs. The assessee to present these relevant evidences before the AO and the AO to consider the same, and other relevant documents ITA No.242/Chny/2025 (AY 2017-18) Preamraj Nadar Kasirajan :: 4 :: filed by the assessee before him to prove the nature and source of cash deposits and pass order in accordance to law after hearing the assessee. 4. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 05th day of May, 2025, in Chennai. Sd/- Sd/- (जगदीश) (JAGADISH) लेखा सद /ACCOUNTANT MEMBER (एबी टी. वक ) (ABY T. VARKEY) \u0001याियक सद\bय/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 05th May, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0010/Appellant 2. \u0011\u0012थ\u0010/Respondent 3. आयकरआयु\u0018/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0011ितिनिध/DR 5. गाड फाईल/GF "