RAMESHLAL SANGITHA,SALEM V. DCIT, CIRCLE-(1), SALEM

ITA 3291/CHNY/2024

AI Insights

This case involves an appeal by Rameshlal Sangitha against the order of the Learned Commissioner of Income Tax (Appeals), Delhi, concerning the Assessment Year 2017-18. The primary contention was the ex parte nature of the assessment order passed by the Assessing Officer and the subsequent cryptic dismissal by the CIT(A), which the assessee argued was erroneous and based on a mistake of fact. The assessee, who suffers from impaired speech and is wheelchair-bound, claimed that her submissions were not considered, leading to a non-application of mind by the CIT(A). The Tribunal found merit in the assessee's arguments, noting the procedural lapses and remanded the case for a thorough re-assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398241 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Other Referred Cases: TIN Box Co. v. CIT [2001] 249 ITR 216 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: S. GIRISH KUMAR
• Keywords: Set aside; Corroborative evidences

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , ाियक सद\u0011 एवं एवं एवं एवं \u0001ी मनोज क ुमार अ\u0019वाल, लेखा सद\u0007 क े सम BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3291/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 Rameshlal Sangitha, 1F Prox ganesh Finance, Rajaji Road, Salem-636 007. v. The DCIT, Circle-1(1), Salem. [PAN: AIQPS 8140 M] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.S. Girish Kumar, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 07.05.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 04.06.2025 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 13.12.2024 for the Assessment Year (hereinafter referred to as \"AY”) 2017-18. 2. At the outset, the Ld.AR of the assessee submitted that the AO had passed an ex parte order, though he had mentioned in the caption of the ITA No.3291/Chny/2024 (AY 2017-18) Rameshlal Sangitha :: 2 :: assessment order that it was passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘). According to the Ld.AR, similarly, the Ld.CIT(A) has passed an impugned cryptic order of two lines by stating it to be duplicate appeal and therefore, dismissed it. This assertion of the Ld.CIT(A) has been contested by the assessee. 3. According to the Ld.AR, assessee suffers from impaired speech & ailments because of which she is confined to wheel-chair. And before the Ld CIT(A), assessee had filed responses/written submissions dated 18.08.2020 & 19.01.2021 along with Annexures, which relevant evidences has not been considered at all by the Ld.CIT(A) while adjudicating the grounds of appeal/passing the impugned cryptic order. Therefore, according to him, there is non-application of mind on the part of Ld CIT(A) while passing the impugned order, which vitiates the action of Ld CIT(A). Further, according to him, even the AO has not given proper opportunity to assessee to substantiate her claim regarding addition of SBNs of Rs.38,50,000/- as well as Rs.15,00,000/- [Total Rs.53,50,000/-] given an opportunity before AO, the assessee undertakes to file the nature and source of SBNs deposited during AY 2017-18 by relying on the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC) The Ld.DR couldn’t controvert with the submission of the Ld.AR. ITA No.3291/Chny/2024 (AY 2017-18) Rameshlal Sangitha :: 3 :: 4. In the aforesaid back ground, we note that the assessee has filed written submissions along with supporting evidences before the Ld CIT(A), challenging the assessment order passed by the DCIT, Circle- 1(1), Salem, dated 18.12.2019. But, the Ld.CIT(A) is noted to have dismissed the appeal by passing a cryptic order stating that he has already disposed off the appeal filed by the assessee against the assessment order vide order No. ITBA/NFAC/S/250/2024- 25/1071/94887(1) dated 13.12.2024, which impugned action has been contested by assessee as erroneous and based on “mistake of fact”. In this regard, no order of Ld CIT(A) disposing of the appeal as observed by Ld CIT(A) is placed on records. Therefore, the impugned action of Ld CIT(A) can’t be countenanced. Be that as it may, since assessee has asserted that she didn’t file any duplicate appeal before the Ld.CIT(A), the reason given by the Ld.CIT(A) can’t be sustained and therefore, it is set aside. At this stage, we note that assessee didn’t get proper opportunity before the AO during the assessment proceedings and note that assessee is confined to wheel chair & impaired speech and so is disabled, therefore, relying on the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC), we set aside the assessment back to the file of the AO for de novo assessment. The Ld.AR has undertaken to file all relevant documents to substantiate her claim regarding addition of SBNs of Rs.38,50,000/- as well as Rs.15,00,000/- ITA No.3291/Chny/2024 (AY 2017-18) Rameshlal Sangitha :: 4 :: [Total Rs.53,50,000/-] i.e. assessee has undertaken to file the nature and source of SBNs deposited during AY 2017-18. The AO to frame de novo assessment after hearing the assessee. 5. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 04th day of June, 2025, in Chennai. Sd/- (मनोज क ुमार अ\u0019वाल) (MANOJ KUMAR AGGARWAL) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 04th June, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ /Appellant 2. \u000eथ /Respondent 3. आयकरआयु\u0014/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF "