RAJNAICKER SUBBALAKSHMI,SANKARANKOVIL V. ITO, WARD-4, TIRUNELVELI

ITA 145/CHNY/2025

AI Insights

The case involves Rajnaicker Subbalakshmi, who deposited Rs. 10,00,000 in cash during the demonetization period but did not file a return of income for the Assessment Year 2017-18. The Assessing Officer issued notices under section 142(1) of the Income-tax Act, 1961, but the assessee failed to respond or comply, leading to an ex-parte assessment order under section 144, adding Rs. 13,03,000 to her income. The assessee's appeal to the CIT(A) was also dismissed ex-parte. The Tribunal found that both the initial assessment and the subsequent appeal were conducted without adequate opportunity for the assessee to present her case, violating the principles of natural justice.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107170 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: S. SUNDAR RAMAN; C.A
• Keywords: Set aside; Principle of natural justice
• Section: 144; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ 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.145/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 Rajnaicker Subbalakshmi, 3-23, West Street, Sevalkulam Post, Sankarankovil – 627 754. [PAN: BQFPS 9733N] Vs. The Income Tax Officer, Ward-4, Tirunelveli. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथG की ओर से/ Appellant by : Shri S. Sundar Raman, C.A Shri B. Gowthaman, CA IJथG की ओर से /Respondent by : Smt. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 19.03.2025 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 21.11.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 06.12.2019. ITA No.145/Chny/2025 :- 2 -: 2. The assessee is an individual. The assessee has deposited cash of Rs.10,00,000/- in her bank account during demonetization period, but has not filed return of income for the relevant Assessment Year. The AO issued notices u/s 142(1) of the Act calling for return of income. However, the assessee neither filled return of income in response to the notices nor complied with notices issued during assessment proceeding. As a result, the A.O passed assessment order u/s.144 of the Act, making addition of cash deposit of Rs.13,03,000/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte holding the addition made by the A.O. 3. The Ld. A.R has contended that sufficient opportunity was not provided to the assessee 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 A.O for fresh consideration in interests of justice. 4. On the other hand, the Ld. Departmental Representative has relied on the orders of the authorities below. 5. We have heard the rival submissions, and perused the materials available on record. We find that the A.O as well as Ld. CIT(A) have ITA No.145/Chny/2025 :- 3 -: passed the orders exparte. 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 A.O subject to payment of costs of Rs.5,000/-. 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 A.O. 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 A.O to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for her 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/- (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: 26th March, 2025. EDN/- ITA No.145/Chny/2025 :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "