RAMAKRISHNAN MURUGAN,VIRUDHUNAGAR V. ITO, WARD-,3, VIRDHUNAGAR, VIRDHUNAGAR

ITA 2723/CHNY/2024

AI Insights

The case involves Ramakrishnan Murugan, who appealed against the orders of the Income Tax Officer, Ward-3, Virudhunagar, and the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal pertained to the assessment year 2017-18, where the A.O had made an addition of Rs. 2,38,68,815 under section 69A of the Income-tax Act, 1961, due to unexplained cash deposits in the assessee's bank account. Both the initial assessment and the subsequent appeal were decided ex-parte due to non-compliance and partial submissions by the assessee. The Tribunal found that the assessee was not given sufficient opportunity to present his case and thus remitted the matter back to the A.O for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472151 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• 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: R. THULASI RAM; KUMARASUBRAMANIAN
• Section: 147; 144; 69A

Judgement Text

" आयकर अपीलीय अिधकरण, ’सी’ \u0010ा यपीठ, चे\u0015ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0018ी एबी टी. वक\u001e, \u0010ा ियक सद एवं \u0018ी जगदीश, लेखा सद क े सम' BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2723/Chny/2024 िनधा8रण वष8 /Assessment Year: 2017-18 Ramakrishnan Murugan, No.1/26, Erichanatham, Sivakasi Taluk, Virudhunagar, Tamil Nadu- 626103. Vs. The Income Tax Officer, Ward-3, Virudhunagar, [PAN: CQWPM6987L] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001e की ओर से/ Appellant by : Shri R.Thulasiram & Shri Kumarasubramanian, Advocates GHथ\u001e की ओर से /Respondent by : Ms.Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 07.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 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 25.09.2024 in the matter of assessment ITA No. 2723/Chny/2024 :- 2 -: framed by the Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 24.03.2022. 2. During the course of assessment proceedings, the A.O noticed that the assessee had made cash deposits amounting to Rs.2,38,68,815/- in his bank account. Subsequently, the A.O has issued various notices to the assessee to explain the nature of source of cash deposits. However, in response, the assessee did not furnish any information regarding the cash deposits. Therefore, the A.O made addition u/s. 69A of the Act at Rs. 2,38,68,815/-. Aggrieved by this, the assessee filed an appeal before Ld. CIT(A). The Ld. CIT(A) had also dismissed the appeal as assessee has made partial submission. 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. 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. ITA No. 2723/Chny/2024 :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. We find that the assessment orders have been passed ex-parte for the non-compliance by the assessee and the Ld CIT(A) has decided the case in want of complete information. The Ld. A.R has submitted that the assessment order is ex-parte and the Ld. CIT(A) has decided the issue in want of complete information ,therefore the case may be remanded back to the A.O for adjudication on merits. 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.10,000/-. 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 his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. ITA No. 2723/Chny/2024 :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 31st January, 2025. Sd/- Sd/- (एबी टी. वक\u001e) (ABY. T. Varkey) \u0010ाियक सद / Judicial Member (जगदीश) (Jagadish) लेखा सद /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 31st January, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT - Madurai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "