R.D.VELLI MAALIHAL,ERODE V. ACIT CIRCLE 2, ERODE

ITA 1921/CHNY/2025

AI Insights

The case involves R.D. Velli Maalihai, a partnership firm engaged in retail sales of gold and silver, which filed an appeal against the order of the Commissioner of Income Tax (Appeals), Delhi. The appeal arose from the assessment order passed by the Assessing Officer under section 143(3) of the Income-tax Act, 1961, which included significant additions to the assessee's income for the Assessment Year 2017-18, citing unexplained cash deposits during the demonetization period and other unexplained credits. The CIT(A) dismissed the appeal due to lack of documentary evidence from the assessee. The Tribunal, considering the principles of natural justice, decided to provide the assessee another opportunity to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777346 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 07-07-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: N. ARJUN RAJ
• 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 मनु क ुमा र िग र, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1921/Chny/2025 िनधा 8रण वष8 /Assessment Year: 2017-18 R.D. Velli Maalihai, 14, Methurangam Street, Erode – 638 001. PAN: AAKFR 1722N Vs. The Asst. Commissioner of Income Tax, Circle-2, Erode. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri N. Arjun Raj, Advocate HIथF की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 25.09.2025 घोषणा की तारीख /Date of Pronouncement : 29.09.2025 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 (NFAC), Delhi (hereinafter \"CIT(A)\"] dated 20.06.2025 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 12.12.2019. Printed from counselvise.com ITA No.1921/Chny/2025 R.D. Velli Maalihai :- 2 -: 2. The assessee is a partnership firm, engaged in the business of retail sales of gold and silver and filed its return of income on 25.10.2017 declaring total income of Rs. 52,38,410/-. In the assessment order, the A.O made an addition of Rs. 62,25,000/- towards cash deposits during the demonetization period and a further addition of Rs. 52,02,083/- u/s. 68 of the Act. Aggrieved, the assessee preferred an appeal before the learned CIT(A). The learned CIT(A), however, observed that the assessee had failed to adduce any documentary evidence in support of its contentions and accordingly dismissed the appeal as not maintainable. 3. The Ld. Authorized Representative (AR) submitted that the assessment order was passed ex-parte, and the Ld. CIT(A) also dismissed the appeal ex-parte without adjudicating the matter on merits. It was therefore prayed that, in the interest of justice, the assessee may be granted one more opportunity to substantiate its case before the Assessing Officer. 4 On the other hand, the learned Departmental Representative (DR) supported the orders of the lower authorities. 5. We have considered the rival submissions and perused the material on record. On perusal of the orders of the A.O as well as the Printed from counselvise.com ITA No.1921/Chny/2025 R.D. Velli Maalihai :- 3 -: learned CIT(A), it is evident that both the orders have been passed ex- parte due to non-compliance on the part of the assessee. The contention of the Ld. AR is that the CIT(A) has not adjudicated the issue on merits. In our considered view, and in the interest of justice as well as keeping in mind the principles of natural justice, the assessee deserves one more opportunity to present its case. Accordingly, we set aside the impugned order of the learned CIT(A) and remit the matter back to the file of the Assessing Officer for denovo assessment in accordance with law, after affording reasonable opportunity of hearing to the assessee. The assessee is directed to appear before the A.O on the date fixed for hearing without fail and to furnish complete details in support of its claim for fresh adjudication. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29th day of September, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 29th September, 2025. EDN/- Printed from counselvise.com ITA No.1921/Chny/2025 R.D. Velli Maalihai :- 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/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "