SAHAYARAJAN ANTHONYPACKIAM ,THOOTHUKUDI V. ITO, WARD-1(2), TUTICORIN

ITA 1199/CHNY/2025

AI Insights

The case involves Sahayarajan Anthonypackiam, who did not file a return of income for the Assessment Year 2017-18. The Assessing Officer reopened the assessment under section 147 of the Income-tax Act, 1961, due to a discrepancy between the sale consideration of an immovable property (Rs. 45,00,000) and its guideline value (Rs. 60,00,000). The AO assessed a Short-Term Capital Gain of Rs. 59,90,000. The assessee's appeal to the CIT(A) was dismissed ex-parte due to non-compliance with notices. The Tribunal found that the CIT(A) should have adjudicated the matter on merits rather than dismissing it on procedural grounds and thus remitted the case back to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 706076 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: R. TULSIRAM; KUMAR SUBRAMANIAN
• Keywords: Set aside
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1199/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 Sahayarajan Anthonypackiam, Periasamypuram North Street, Vilathikulam, Thoothukudi-628906. [PAN: AVBPS 7186D] Vs. The Income Tax Officer, Ward-1(2), Thoothukudi. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri R. Tulsiram, Advocate & Shri Kumar Subramanian, Advocate IJथG की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 30.06.2025 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 (NFAC), Delhi [hereinafter “CIT(A)”] dated 07.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 & 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 17.05.2023. ITA No.1199/Chny/2023 Sahayarajan Anthonypackiam :- 2 -: 2. The assessee is an individual and has not filed the return of income for the relevant assessment year. The A.O reopened the assessment u/s 147 of the Act on the ground that the assessee had sold immovable property for a consideration of Rs. 45,00,000/-, whereas the guideline value of the said property was Rs. 60,00,000/-. Accordingly, the AO completed the assessment u/s 147 of the Act and assessed Short-Term Capital Gain of Rs. 59,90,000/-. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte due to non-compliance with the notices issued. 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 Ld. CIT(A) for fresh consideration in the interest of justice. 4. The Ld. Departmental Representative (DR), relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find ITA No.1199/Chny/2023 Sahayarajan Anthonypackiam :- 3 -: that the appeal was dismissed solely on the ground of non-compliance by the assessee, without dealing with the merits of the addition made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. 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 30th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th June, 2025. EDN/- ITA No.1199/Chny/2023 Sahayarajan Anthonypackiam :- 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 "