RAMESH MANGILAL,KOLATHUR V. INCOME-TAX OFFICER, NON CORP WARD 10(3), NUNGAMBAKKAM

ITA 1050/CHNY/2025

AI Insights

This case involves an appeal by Ramesh Mangilal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the addition of ₹1,40,28,200 as unexplained money under section 68 of the Income Tax Act, 1961. The addition was based on cash deposits found in the assessee's account, which were not explained satisfactorily. The Assessing Officer had initially issued notices under sections 148 and 142(1) of the Act, and completed the assessment ex parte due to non-submission of relevant documents by the assessee. The Tribunal noted the procedural lapses and the hurried nature of the assessment due to impending limitation, and decided to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708177 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: ARIHANTH JAIN
• Section: 147; 148; 144; 142(1); 68

Judgement Text

"आयकर अपीलीय अिधकरण, ’सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.1050/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2017-18 Ramesh Mangilal, 8, Ayyappa nagar Extension, Vinayagapuram, Kolathur, Chennai 600 099. [PAN:AGVPR4889B] Vs. The Income Tax Officer, Non Corporate Ward 10(3), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri Arihanth Jain, C.A. ŮȑथŎ की ओर से/Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/ Date of hearing : 01.07.2025 घोषणा की तारीख /Date of Pronouncement : 17.07.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 14.02.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2017-18. 2. The assessee raised 3 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) I.T.A. No.1050/Chny/25 2 is justified in confirming the addition made by the Assessing Officer under section 68 r.w.s. 115BBE of the Income Tax Act, 1961 [“Act” in short] in the facts and circumstances of the case. 3. We note that the Assessing Officer found from NMS data and information available on ITBA & ITS data that the assessee made cash deposits of ₹.2,45,24,700/- in his current account and made withdrawals of ₹.32,09,000/-, which is evident from para 2 of the assessment order and no return of income filed for AY 2017-18. Accordingly, the Assessing Officer issued notice under section 148 of the Act dated 31.03.2021, however, there was no submission filed by the assessee in response to the above notice issued. Subsequently, the Assessing Officer issued notice under section 142(1) of the Act dated 16.11.2021 to the assessee along with detailed questionnaire and also issued notices under section 142(1) of the Act dated 12.01.2022 & 25.02.2022. The Assessing Officer also informed the assessee that the limitation in his case was 31.03.2022 and proposed to complete exparte order in the absence of relevant documentary evidences. A show-cause notice under section 144 of the Act dated 07.03.2022 was also issued. Against the show-cause notice, the assessee filed return of income on 14.03.2022 against notice under section 148 of the Act declaring income of ₹.1,90,920/-. The Assessing I.T.A. No.1050/Chny/25 3 Officer made it clear at par 4 of the assessment order that issue of notice under section 143(2) of the Act is not possible since the minimum required time to issue and serve notice on the assessee is not available for the reason that the return of income has been filed by the assessee only on 14.03.2022. Accordingly, the Assessing Officer completed the assessment under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 30.03.2022 by treating the cash deposit to an extent of ₹.1,40,28,200/- as unexplained money under section 68 of the Act and added to the total income of the assessee. 4. The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) held that the assessee made only general contentions without providing any documentary proof to substantiate the claim of the assessee and confirmed the addition made by the Assessing Officer of ₹.1,40,28,200/-. The ld. CIT(A) further held that the said confirmation is subject to verification by considering the submissions of the assessee that the entire cash deposit made by him was of ₹.1,30,66,700/- across all banks account, whereas, the Assessing Officer has considered total cash deposit as ₹.1,40,28,200/-, which needs further reconciliation on behalf of I.T.A. No.1050/Chny/25 4 the Assessing Officer. On being aggrieved, the assessee is in appeal before the Tribunal. 5. The ld. AR Shri Arihanth Jain, C.A. drew our attention to the para 3 of the assessment order and submits that the assessee has furnished the reasons for the delay in filing the return of income, but, however, the Assessing Officer was incorrect to treat the return of income as non-est. He further submits that the assessment was completed hurriedly under section 144 of the Act without following due procedure for the reason that the same is getting barred by limitation. By filing various details in the form of voluminous paper book, the ld. AR prayed to afford one more opportunity by remanding the matter to the file of the Assessing Officer for fresh consideration. 6. The ld. DR Ms. R. Anita, Addl. CIT drew our attention to para 2.1 of the assessment order and submits that notice under section 148 of the Act was issued on 31.03.2021 and the assessee is required to file the ITR within the time stipulated in the notice. Further, she argued that belated return filed under section 148 of the Act by itself void-ab-inito, because of not being filed with the time stipulated in the notice issued as the provisions. Moreover, the assessee filed the ITR just 15 days before it is getting barred by limitation. She vehemently argued that costs may be I.T.A. No.1050/Chny/25 5 imposed, in case this Tribunal affords an opportunity by remanding the matter to the file of the Assessing Officer. 7. Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 30.03.2022. On perusal of the assessment order, we note that notice under section 148 of the Act was issued on 31.03.2021, whereas, the assessee filed return of income on 14.03.2022, just 16 days to go to complete the assessment proceedings before the case is getting barred by limitation on 31.03.2022. Considering the voluminous paper book filed before the Tribunal by filing various details, which are required to be examined by the Assessing Officer, taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.10,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering evidences filed in paper book pages 216 to 278 and decide the issue on merits in I.T.A. No.1050/Chny/25 6 accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 17th July, 2025 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 17.07.2025 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "