SELVARAJ SAMBATH,COIMBATORE V. ITO, NCW-4(1), COIMBATORE

ITA 1916/CHNY/2024

AI Insights

This case involves an appeal by Mr. Selvaraj Sampath against the order of the Learned Commissioner of Income Tax (Appeals), Delhi, for the Assessment Year 2017-18. The appeal was initially dismissed by the CIT(A) due to non-response from the assessee to two notices. Both the CIT(A) and the AO had passed ex parte orders without hearing the assessee, who was unable to appear due to reasons beyond his control, specifically related to the demonetization period. The Tribunal found that the assessee was not given a proper opportunity to present his case and thus set aside the CIT(A)'s order, restoring the matter to the AO for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107126 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 16-07-2024
• Other Referred Cases: TIN Box Co. v. CIT [2001] 249 ITR 216 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOWTHAMI MANIVASAGAM
• Assessee Lawyers: K. MUTHUKUMAR

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद\t क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1916/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2017-18 Mr.Selvaraj Sampath, No.244/11, Thirumal Nagar, Krishnapuram, Somanur, Coimbatore-641 668. v. The ITO, NCW-4(1), Coimbatore [PAN: CYMPS 1122 B] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.K. Muthukumar, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Ms. Gowthami Manivasagam, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 24.09.2024 घोषणाक\u001aतारीख /Date of Pronouncement : 04.12.2024 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short \"the Ld.CIT(A)”), Delhi, dated 03.01.2024 for the Assessment Year (hereinafter in short \"AY”) 2017-18. 2. At the outset, it is noted that appeal has been filed after delay of ‘135’ days and the assessee had filed an affidavit explaining the cause for ITA No.1916/Chny/2024 (AY 2017-18) Mr.Selvaraj Sampath :: 2 :: the delay. Having perused the contents of the affidavit, we find that there is sufficient cause for the delay and therefore, we condone the delay and proceed to adjudicate the grounds of appeal raised by the assesse. 3. Ground Nos.2 & 3 are against the action of the Ld.CIT(A) dismissing the appeal without hearing the assessee. In this regard, the Ld.AR pointed out that the Ld.CIT(A) has dismissed the appeal only on the ground that the assessee didn’t respond to his 2 (two) notices on 28.01.2021 and 08.12.2023 and that he didn’t go into the merits of the grounds while passing the ex parte order qua assessee. The Ld.AR also brought to our notice that the AO has also passed an ex parte best judgment assessment u/s.144 of the Income Tax Act, 1961, because assessee couldn’t appear before the AO due to reasons beyond his control and which prevented him from adducing evidence regarding nature and source of cash deposits during demonetization. Be that as it may, we notes that the Ld.CIT(A) as well as the AO has passed ex parte order qua assessee without hearing him. The Ld.AR undertakes to appear before both the authorities provided an opportunity is given. 4. Per contra, the Ld.DR doesn’t want us to give one more innings to the assessee. ITA No.1916/Chny/2024 (AY 2017-18) Mr.Selvaraj Sampath :: 3 :: 5. We find from perusal of the records that assessee didn’t get proper opportunity before the AO as well as the Ld.CIT(A) which fact is discernable from the affidavit filed before us. Since at the stage of assessment itself assessee didn’t get proper opportunity of hearing, we relying on the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC), are inclined to set aside the impugned order of the Ld.CIT(A) and restore the assessment back to the file of the AO with a direction to de novo assess the income of the assesse. The assessee is directed to file written submissions/relevant documents to substantiate its Return of Income and other issues raised by AO in the first round of assessment wherein, it is noted that assessee appeared once before the AO on 04.11.2019 and undertook to produce evidence to substantiate the nature and source of cash deposited during demonetization period. However, it was brought to our notice that assessee was prevented due to reasons beyond his control from appearing again before the AO, which led to the addition u/s.69 of the Act. Therefore, we give one more opportunity the assessee to appear before the AO, but since there is negligence on the part of the assessee, cost of Rs.5,000/- is imposed, which the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of depositing of the same before the AO and thereafter, ITA No.1916/Chny/2024 (AY 2017-18) Mr.Selvaraj Sampath :: 4 :: the AO to frame the de novo assessment after hearing the assessee in accordance to law. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 04th day of December, 2024, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 04th December, 2024. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\r/Appellant 2. \u000e\u000fथ\r/Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड\u001eफाईल/GF "