S. PANNEERSELVAM,CHENNAI V. ITO, NCC-10(3), CHENNAI

ITA 1688/CHNY/2025

AI Insights

The case involves S. Panneerselvam, the appellant, who contested the assessment order for the year 2018-19, which included disallowances of ₹11,80,000 for unexplained cash deposits and ₹4,95,000 for unexplained expenditures related to credit card payments. The Assessing Officer's initial assessment was challenged, leading to an appeal before the CIT(A), who remanded the case back to the Assessing Officer for a fresh assessment after providing a proper opportunity to the assessee. The Tribunal dismissed the appeal, supporting the CIT(A)'s decision to remand the case for a thorough reassessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774114 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Appeal Filed On: 12-06-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Keywords: Condonation of delay; Unexplained cash credit; Unexplained expenditure; Non compliance
• Section: 147; 148; 69C

Judgement Text

"आयकर अपीलीय अिधकरण, ’बी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘B SMC’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ Before S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.1688/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2018-19 S. Panneerselvam, No. 11, Vivek Nagar, Kolathur, Chennai 600 099. [PAN: AINPP3051B] Vs. The Income Tax Officer, Non Corporate Circle 10(3), Chennai. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Ms. V. Aswathy, JCIT सुनवाई की तारीख/ Date of hearing : 04.09.2025 घोषणा की तारीख /Date of Pronouncement : 09.09.2025 आदेश /O R D E R This appeal filed by the assessee is directed against the order dated 19.02.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2018-19. 2. This appeal is filed with a delay of 43 days. The assessee filed petition for condonation of delay stating the reasons in support of an affidavit. Upon hearing both the parties and on examination of the said affidavit, I find the reasons stated by the assessee are bonafide, which Printed from counselvise.com I.T.A. No.1688/Chny/25 2 really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. When the appeal was taken up for hearing, none appeared on behalf of the assessee nor any adjournment petition filed. Hence, the assessee is called absent and proceeds to adjudicate the appeal after hearing the ld. DR. 4. It is noted that the Assessing Officer completed the assessment order under section 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 [“Act” in short] dated 29.03.2022 disallowed an amount of ₹.11,80,000/- on account of unexplained money under section 69A of the Act since the assessee did not explain the source of income. Further, the Assessing Officer disallowed ₹.4,95,000/- on account of unexplained expenditure under section 69C of the Act since the assessee failed to explain the source of payments made by him towards credit cards bill. The ld. CIT(A) remanded the matter to the file of the Assessing Officer for fresh consideration by affording proper opportunity to the assessee. 5. The ld. DR Ms. V. Aswathy, JCIT submits that as per information available with the Assessing Officer, the assessee had deposited cash Printed from counselvise.com I.T.A. No.1688/Chny/25 3 to the tune of ₹.11,80,000/- in his bank account maintained with Karur Vyasa Bank Ltd. The assessee also made payments towards credit card bills to the extent of ₹.4,95,000/- out of which payment of ₹.4,43,000/- was made in cash. She submits that the assessee did not comply with various notices issued by the Assessing Officer and added both unexplained cash credit and unexplained payments to the total income of the assessee. She further submits that besides challenging the additions on merits, the assessee agitated issuance of notice under section 148 of the Act before the ld. CIT(A). The ld. DR vehemently argued that since the return of income filed belatedly on 06.01.2022 in response to the notice under section 148 of the Act, the assessee is precluded from taking any objection in the proceedings stating that the notice was served upon him in an improper manner in terms of section 292BB of the Act. She further argued that since the assessment was completed under section 147 r.w.s. 144 4 r.w.s. 144B of the Act, the ld. CIT(A) rightly remanded the matter to the file of the Assessing Officer for fresh consideration by allowing proper opportunity to the assessee and prayed that the same may be confirmed. 6. After hearing the ld. DR and on perusal of the material on record, it is noted that the Assessing Officer made two additions on account of Printed from counselvise.com I.T.A. No.1688/Chny/25 4 unexplained cash deposit and unexplained expenditure and assessed the income of the assessee at ₹.35,16,010/-. The assessee’s non compliance to the notices issued by the Assessing Officer is clear from para 5.2 and 5.3 of the assessment order and as rightly pointed by the ld. DR that the ld. CIT(A) considering the order of the Assessing Officer exparte of the assessee remanded the matter to the file of the Assessing Officer for fresh consideration. Considering the facts and circumstances of the case and the submissions of the ld. DR, I am of the opinion that the ld. CIT(A) has rightly remanded the matter to the file of the Assessing Officer to conduct the assessment proceedings afresh by allowing proper opportunity to the assessee and it is justified. Thus, the ground raised by the assessee is dismissed. 7. In the result, the appeal filed by the assessee is dismissed. Order pronounced on 09th September, 2025 at Chennai. Sd/- (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 09.09.2025 Vm/- Printed from counselvise.com I.T.A. No.1688/Chny/25 5 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. Printed from counselvise.com "