SATHYA GANAPATHI,VELLORE V. ITO WARD 3, VELLORE

ITA 347/CHNY/2026

AI Insights

The case involves Sathya Ganapathi, the appellant, who did not file a return of income for the assessment year 2018-19. The Assessing Officer (A.O) reopened the assessment due to substantial cash withdrawals and contract payments made by the assessee, which were not reported. The A.O made an addition of Rs. 11,60,931 towards the business income of the assessee. The assessee's appeal to the CIT(A) was dismissed due to a delay of 608 days in filing the appeal, for which no sufficient cause was shown. The assessee then appealed to the Income Tax Appellate Tribunal, which found merit in giving another opportunity to the assessee to explain the delay and directed the CIT(A) to reconsider the case if the delay was condoned.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 845903 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Chennai
• Assessment Year: 2018-2019
• Appeal Filed On: 27-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN C.N
• Assessee Lawyers: N.V.KRISHNAN
• Keywords: Business income
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ ा यपीठ, चे\u0012ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0015ी जॉज\u0018 जॉज\u0018 क े, उपा \u001a\u001b एवं सु\u0015ी पदमा वती यस, लेखा सद$ क े सम\u001b BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND MS. PADMAVATHY.S, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.347/Chny/2026 िनधा \u0018रण वष\u0018 /Assessment Year: 2018-19 Sathya Ganapathi, No.3/20, Pajanai Kovil Street, Arjathi Gmbur, Guruvarajapalayam, Vellore – 632 107. PAN: GLEPS 6157R Vs. The Income Tax Officer, Ward-3, Vellore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थ( की ओर से/ Appellant by : Mr. N.V.Krishnan, Advocate *+थ( की ओर से /Respondent by : Mr. Bipin C.N, CIT सुनवा ई की ता रीख/Date of Hearing : 19.03.2026 घोषणा की ता रीख /Date of Pronouncement : 24.03.2026 आदेश / O R D E R PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short \"CIT(A)\") passed u/s. 250 of the Income Tax Act, 1961 (in short \"the Act\") dated 10.11.2025 for Assessment Year (AY) 2018- 19. 2. The assessee is an individual and did not file the return of income. The A.O received information that the assessee has made substantial cash withdrawals and has made contract payments. Since, the assessee did not file Printed from counselvise.com ITA No.347/Chny/2026 Sathya Ganapathi :- 2 -: the return of income, the Assessing Officer (A.O) reopened the assessment by issue of notice u/s. 148 of the Act. The assessee did not file the return of income in response to notice u/s. 148 of the Act and also did not respond to the notice calling for details properly. Accordingly, the A.O concluded the assessment by making addition of Rs. 11,60,931/-towards business income of the assessee. Aggrieved, the assessee filed further appeal before the CIT(A). There was a delay of 608 days in filing the appeal before the CIT(A). Since, the assessee did not file any proper reasons for the delay, the CIT(A) dismissed the appeal in limine stating that there is no sufficient cause for condoning the delay. The assessee is in appeal before the Tribunal against the order of the CIT(A). 3. We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not aware of the income tax proceedings and completely relied on his counsel for handling the matters. The Ld. AR further submitted that the counsel of the assessee did not provide proper professional support and therefore the assessee was not aware that the A.O has passed the assessment order. The ld. AR accordingly prayed for one more opportunity. From the perusal of records we notice that the assessee has stated the reasons for delay in filing the appeal before the CIT(A) as part of Form 35 and did not file any separate condonation petition or affidavit explaining the reasons. Considering the facts and circumstances unique to the assessee's case, we are inclined to give one more opportunity to the assessee. Further, lower authorities have not examined the impugned issue on merits since the assessee did not respond to AO's notices and that the CIT(A) has dismissed the appeal in limine. We therefore, remit the appeal back to the CIT(A) for fresh Printed from counselvise.com ITA No.347/Chny/2026 Sathya Ganapathi :- 3 -: consideration of the delay petition. The Ld. AR during the course of hearing raised a legal contention that the A.O did not give seven days time while issuing notice u/s. 148A(b) of the Act and therefore the reopening is not valid. Since we have remitted the appeal back to the CIT(A) to re-examine the delay condonation, we direct the CIT(A) to consider the above legal contention of the assessee, if the delay is condoned. The assessee is directed to file affidavit explaining the reason for delay in filing the appeal along with a condonation petition. The assessee further directed to file any further details as may be called for with regard to the legal contention and impugned additions made by the AO and cooperate with appellate proceedings without seeking unnecessary adjournments. It is ordered accordingly. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 24th day of March, 2026 at Chennai. Sd/- Sd/- (जॉज\u0018 जॉज\u0018 क े) (George George K) उपा \u001a\u001b / Vice President (पदमा वती यस) (Padmavathy.S) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 24th March, 2026. EDN, Sr. P.S आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com EJTADA DURGA NARESH Digitally signed by EJTADA DURGA NARESH Date: 2026.03.27 12:41:08 +05'30' "