SEERANGAN CHETTIAR MANI,DINDIGUL V. ITO, WARD-1, DINDIGUL

ITA 1869/CHNY/2025

AI Insights

The case involves Seerangan Chettiar Mani, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals)/NFAC, Delhi, for the Assessment Year 2017-18. The primary issue arose from the AO's addition of Rs. 20,25,000 to the assessee's income, which was reportedly deposited in SBN currency during the demonetization period. The CIT(A) had dismissed the appeal ex-parte due to non-response from the assessee. The Tribunal, considering the principles of natural justice, decided to restore the case to the AO for a fresh assessment, allowing the assessee an opportunity to present evidence and submissions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772750 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VEERAMANY.K; IRS
• Assessee Lawyers: S. JESINTHA
• Keywords: Set aside; Principle of natural justice

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1869/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 Seerangan Chettiar Mani, 15/2/42, PRR Street, Kilakottai, Chinnalapatti, Dindigul-624 301. v. The ITO, Ward-1, Dindigul. [PAN: ADUPM 6817 C] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Ms.S. Jesintha, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr.Veeramany.K, IRS सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 17.01.2024 for Assessment Year 2017-18. 2. At the outset, the Ld.AR of the assessee brought to our notice that the appeal has been filed belatedly by ‘91’ days and assessee has filed an affidavit explaining the cause for the delay. Having gone through the Printed from counselvise.com ITA No.1869/Chny/2025 (AY 2017-18) Seerangan Chettiar Mani :: 2 :: contents of the same, we find that cause for delay was reasonable, so we excuse the same and proceed to hear the assessee’s appeal on merits. 3. The brief facts of the case are that the AO was having information under AIMS (Actionable Information Monitoring System) that the assessee had deposited cash of rs.16,30,000/- and Rs.3,95,000/- totaling to Rs.20,25,000/- during demonetization period in his bank account. The AO found total deposits of Rs.20,25,000/- were in SBN currency and added the same u/s 69A of the Act. The ld. CIT(A) dismissed the appeal ex-parte as there was no response to the notices issued for hearing and filing submission. 4. Aggrieved, assessee is in appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 6. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence before the AO. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the AO for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by Printed from counselvise.com ITA No.1869/Chny/2025 (AY 2017-18) Seerangan Chettiar Mani :: 3 :: the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities. 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "