SENGOTTAYAN SELVAKUMAR,NAMAKKAL V. ITO, WARD-1, NAMAKKAL

ITA 2679/CHNY/2025

AI Insights

The case involves Sengottayan Selvakumar, who made cash deposits totaling Rs. 34,00,000 in his bank account but did not file a return of income for the Assessment Year 2010-11. The Assessing Officer reopened the assessment and made an addition under section 69A of the Income-tax Act, 1961, as the assessee failed to explain the source of these funds. The assessee's appeal to the Commissioner of Income Tax (Appeals) was unsuccessful as he did not comply with notices or provide specific details regarding the deposits. The Tribunal, considering the principles of natural justice, decided to grant one more opportunity to the assessee to substantiate his claims before the Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792498 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 29-09-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. RAGHUPATHY
• Assessee Lawyers: T.S. LAKSHMI VENKATRAMAN
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice; Source of fund
• Section: 147; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद\" एवं \u0019ी जगदीश, लेखा सद\" क े सम) BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2679/Chny/2025 िनधा;रण वष; /Assessment Year: 2010-11 Sengottayan Selvakumar, 2-21A, Rajapalayam, Karkoodalpatty Post, Rasipuram, Namakkal – 636 202. PAN: CBQPS 3155R Vs. The Income Tax Officer, Ward-1, Namakkal. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri T.S.Lakshmi Venkatraman, FCA IJथ की ओर से /Respondent by : Shri R. Raghupathy, Addl. CIT सुनवाई की तारीख/Date of Hearing : 20.11.2025 घोषणा की तारीख /Date of Pronouncement : 04.12.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2010-11 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 30.01.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 r.w.s 147 of the Income-tax Act,1961 (hereinafter “the Act”) dated 17.12.2018. Printed from counselvise.com ITA No.2679/Chny/2025 Sengottayan Selvakumar :- 2 -: 2. The assessee has made cash deposits of Rs. 34,00,000/- in his bank account maintained with ICICI Bank Ltd., Namakkal but has not filed return of income for the relevant A.Y. The AO therefore reopened assessment, and passed order ex-parte u/s.144 r.w.s 147 of the Act, making addition u/s. 69A of the Act at Rs.34,00,000/-, as the assessee failed to explain the source of funds for transactions reflected in his bank account. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) has confirmed the addition as the assessee had failed to comply with the notices issued and did not file any specific details regarding cash deposits in his bank account. 3. The Ld. Authorized Representative (A.R.) for the assessee has contended that adequate opportunity was not provided to furnish the required details either before the A.O. or before the Ld. CIT(A). It was therefore prayed that, in the interests of justice, one more opportunity may be granted to substantiate the assessee’s his claim before the A.O. Printed from counselvise.com ITA No.2679/Chny/2025 Sengottayan Selvakumar :- 3 -: 4. On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 5. We have heard the rival submissions and perused the materials available on record. We find that the A.O as well as Ld. CIT(A) passed orders ex-parte as the assessee did not respond to the notices issued and failed to furnish requisite details in respect of the cash deposits made in his bank account. It is further observed that the assessee has been negligent in pursuing the matter both before the A.O and the Ld. CIT(A). However, keeping in view the principles of natural justice, we are of the opinion that one more opportunity should be granted to the assessee to substantiate his case before the A.O. Accordingly, we set aside the impugned order and remit the matter back to the file of the A.O for denovo assessment in accordance with law, after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with all the notices issued by the A.O and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. Printed from counselvise.com ITA No.2679/Chny/2025 Sengottayan Selvakumar :- 4 -: 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 04th day of December, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद\" / Judicial Member (जगदीश) (Jagadish) लेखा सद\" /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 04th December, 2025. EDN, Sr. P.S आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF Printed from counselvise.com "