RAJAGOPAL GOVINDASWAMI KUMAR,CHENNAI V. ITO, NCW-15(2), CHENNAI

ITA 182/CHNY/2025

AI Insights

The case involves Rajagopal Govindaswami Kumar, the appellant, who filed an appeal against the order of the CIT(A) which upheld the addition of agricultural income of Rs. 39 Lakhs as unexplained credit under section 68 of the Income-tax Act, 1961. The appellant had initially declared a total income of Rs. 3,30,630 and agricultural income of Rs. 39,00,000 for the Assessment Year 2017-18. The Assessing Officer (AO) made the addition during the assessment proceedings. The CIT(A) upheld this addition in an ex-parte order, as the appellant was unaware of the proceedings due to the sudden demise of his Chartered Accountant. The Tribunal, considering the circumstances and the principles of natural justice, decided to remit the case back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107224 (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: K. ANAND; C.A
• Keywords: Set aside; Unexplained cash credit; Principle of natural justice
• Section: 143(3); 68

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.182/Chny/2025 िनधा9रण वष9 /Assessment Year: 2017-18 Rajagopal Govindaswami Kumar, Plot No.1&2, MCN Nagar, Prakasam Road, Thoraipakkam, Chennai – 600 097. Vs. The Income Tax Officer, Non Corporate Ward-15(2), Chennai. [PAN: AQEPK 2302F] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri K. Anand, C.A 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 25.11.2024 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 31.12.2019. ITA No.182/Chny/2025 :- 2 -: 2. The assessee is an individual and filed return of income admitting total income of Rs. 3,30,630/- and agricultural income of Rs.39,00,000/-. The A.O passed order u/s. 143(3) of the Act, making addition of agricultural income of Rs. 39 Lakhs as unexplained credit u/s. 68 of the Act. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). However, the Ld. CIT(A) in ex-parte order passed upheld the addition made by the A.O. 3. The Ld. Authorized Representative (A.R) of the assessee has submitted that due to the sudden demise of Chartered Accountant, the assessee was unaware of the proceeding, therefore could not respond to the notices issued. The Ld AR requested that the case may be remitted back to the Ld. CIT(A) for fresh consideration in the interests of justice. 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. 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). Accordingly, we set aside the orders passed by the Ld. CIT(A) and ITA No.182/Chny/2025 :- 3 -: 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 of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. 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 "