SATTAMUTHU PANDIMURUGESAN,MADURAI V. ITO, NCW-1(5), MADURAI

ITA 2489/CHNY/2025

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The case involves Sattamuthu Pandimurugesan, an individual and proprietor of M/s.Balaji Traders, who did not file his income tax return for the assessment year 2020-21. The Assessing Officer (AO) made additions to his income based on unreported sales and suspicious cash transactions. The assessee's appeal to the CIT(A) was dismissed due to non-participation, attributed to his lack of familiarity with digital communication. The Tribunal recognized the need for a fair hearing and remitted the case back to the CIT(A) for a fresh assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 827410 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Appeal Filed On: 09-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: ILAKIYA S.D; MOHAMMED FAIZAL
• Keywords: Set aside; Business income; Bogus purchase; Bogus

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ ा यपीठ, चे\u0012ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI \u0014ी जॉज\u0017 जॉज\u0017 क े, उपा \u0019\u001a एवं \u0014ी एस.आर.रघुना था , लेखा सद% क े सम\u001a BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपीलसं./ITA No.2489/CHNY/2025 नधा\u000fरण वष\u000f / Assessment Year: 2020-21 Sattamuthu Pandimurugesan, 14/12, Avadai Thanga Nadar Street, Usilampatti, Madurai – 625 532. vs. The Income Tax Officer, Non-Corp Ward-1(5), Madurai. [PAN: CBPPP-1816-B] (अपीलाथ\u0014/Appellant) (\u0015\u0016यथ\u0014/Respondent) अपीलाथ\u0014 क\u0017 ओर से/ Appellant by : Ms. Ilakiya S.D, Advocate & Mr. Mohammed Faizal, Advocate. \u0015\u0016यथ\u0014 क\u0017 ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT. सुनवाई क\u0017 तार ख/Date of Hearing : 18.11.2025 घोषणा क\u0017 तार ख /Date of Pronouncement : 05.01.2026 आदेश / O R D E R PER S.R. RAGHUNATHA, AM: This appeal by the assessee is arising out of the order dated 24.07.2025, passed by the Learned Commissioner of Income Tax (Appeal), NFAC, Delhi (in short “ld.CIT(A)”) for the assessment year (A.Y) 2020-21 against the order u/s.147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter the ‘Act’) passed by the Assessing Officer (AO) dated 28.02.2025. 2. Brief facts of the case are that the assessee is an individual and proprietor of M/s.Balaji Traders and had not filed its return of income for A.Y.2020-21. Based on the information available with the department, the Assessing Officer found that the assessee shown total sales to the tune of Rs.2,51,99,000/- and transactions of cash Printed from counselvise.com 2 ITA No.2489/Chny/2025 deposits/withdrawals to the tune of Rs.3,63,33,000/- into his bank account maintained with TMB and Canara Bank, the Assessing Officer issued statutory notices and details called for. In response to the notice, the assessee ITR filed u/s.148 on 28.02.2024, declaring total income of Rs.4,61,670/- and submitted the reply along with supporting documents for consideration. On perusal of the details submitted by the assessee, the AO made a total addition to the tune of Rs.9,54,878/- as disallowance of bogus purchase by arriving a total income of Rs.14,16,550/- and concluded the assessment proceedings by passing an order u/s.147 r.w.s 144B of the Act dated 28.02.2025. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC, Delhi on 28.12.2016. 4. At the outset, we observed that ld.CIT(A) has provided three opportunities for the assessee to appear for hearings as detailed in paragraph 5.1 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld. CIT(A) passed an order dated 24.07.2025 by confirming the order of the Assessing Officer. 5. The ld.AR submitted that the assessee is senior citizen from a rural background and is not well-versed in handling of computers or navigating income tax portal and hence the assessee was not aware of the notices issued by the ld.CIT(A) and hence he could not appear before the ld.CIT(A). In view of the above, the ld.AR prayed to set aside the order of ld.CIT(A) and remit the issues to the file of ld.CIT(A). Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the first appellant authority to complete the appellate proceedings effectively. 6. Per contra, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A). Printed from counselvise.com 3 ITA No.2489/Chny/2025 7. We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed order by considering the submissions made by the assessee along with the information available with the department and the same has been dismissed by the ld.CIT(A), NFAC due to non-participation of the assessee. 8. Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 05th January, 2026 at Chennai. Sd/- Sd/- (जॉज\u0017 जॉज\u0017 क े) (GEORGE GEORGE K) उपा \u0019\u001a /VICE PRESIDENT (एस. आर. रघुना था ) (S. R. RAGHUNATHA) लेखा सद%/ACCOUNTANT MEMBER चे\"नई Chennai: #दनांक Dated : 05th January, 2026 sp आदेश क\u0006 \u0007\bत ल प अ\u000fे षत/Copy to: 1. अपीलाथ\u0014/Appellant 2. \u0015\u0016यथ\u0014/Respondent 3.आयकर आयु%त/CIT– Chennai/Coimbatore/Madurai/Salem 4. &वभागीय \u0015 त न)ध/DR 5. गाड\u000f फाईल/GF Printed from counselvise.com "