SHABI ILIYAS AHAMED,VELLORE V. ITO WARD 2, VELLORE

ITA 492/CHNY/2026

AI Insights

The case involves Shabi Iliyas Ahamed, the appellant, who contested the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issues were the reopening of the assessment and the non-condonation of delay in filing the appeal against the Assessing Officer's order, which included additions for unexplained money and business income. The Tribunal found that the CIT(A) did not adequately consider the assessee's submissions regarding the delay and the merits of the case, leading to the decision to remand the case for further consideration.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847963 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Chennai
• Assessment Year: 2017-2018
• Appeal Filed On: 30-01-2026
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V SREENIVASAN
• Assessee Lawyers: J. SARAVANAN
• Keywords: Business income; Opportunity of being heard; Reopening of assessment
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI ŵी इंट ूरी रामाराव, लेखा सद˟ एवं ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ क े समƗ । Before Shri Inturi Rama Rao, Accountant Member & Shri S.S. Viswanethra Ravi, Judicial Member आयकर अपील सं./I.T.A. No.492/Chny/2026 िनधाŊरण वषŊ/Assessment Year: 2017-18 Shabi Iliyas Ahamed, 7/1, Usmanpet 1st Street, Melvisharam, Walajapet, Vellore 632 509. [PAN: AVNPA4037F] Vs. The Income Tax Officer, Ward 2, Vellore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri J. Saravanan, Advocate ŮȑथŎ की ओर से/Respondent by : Shri AR V Sreenivasan, CIT सुनवाई की तारीख/ Date of hearing : 16.03.2026 घोषणा की तारीख /Date of Pronouncement : 24.03.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 20.11.2025 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2017-18. 2. Besides challenging reopening of assessment, the assessee also challenged the appellate order passed without condoning the delay in filing the appeal and deciding the issue on merits. Printed from counselvise.com I.T.A. No.492/Chny/26 2 3. At the outset, it is noted that the Assessing Officer determined the income of the assessee at ₹.86,35,696/-, inter alia, making addition in respect of variation of unexplained money of ₹.63,89,000/- under section 69A of the Income Tax Act, 1961 [“Act” in short] and variation in respect of business income to an extent of ₹.22,46,696/- vide his order dated 04.02.2025 passed under section 147 r.w.s. 144 r.w.s. 144B of the Act. The assessee challenged the same before the ld. CIT(A) with a delay of 154 days in filing the appeal. The assessee filed condonation petition on 06.10.2025 and uploaded the same in the ITBA portal vide acknowledgement No. 949690911061025 with reference to the notice issued by the ld. CIT(A). The ld. CIT(A) discussed the explanation offered by the assessee with reference to the said delay from para 5.2 to 5.7 & 6, wherein, he did not condone the delay for non-satisfaction of reasons explained by the assessee. 4. The ld. AR Shri J. Saravanan, Advocate contended that the ld. CIT(A) without considering the submissions of the assessee, confirmed the order of the Assessing Officer and prayed to remand the matter to the file of the ld. CIT(A) with a direction to afford an opportunity to the assessee. Printed from counselvise.com I.T.A. No.492/Chny/26 3 5. The ld. DR Shri AR V Sreenivasan, CIT did not dispute that there is no discussion on merits. 6. Having heard both the parties and on considering the submissions of the ld. AR & the ld. DR, we deem it proper to remand the matter to the file of the ld. CIT(A) to consider the delay condonation petition afresh and condone the delay, adjudicate the issue on merits after the considering the documentary evidences and explanation as may be filed by the assessee. Since the assessee has also raised legal ground with regard to reopening of assessment before this Tribunal, the assessee is directed to raise the same before the ld. CIT(A) and the ld. CIT(A) shall adjudicate the legal issue by affording an opportunity of being heard to the assessee and pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 24th March, 2026 at Chennai. Sd/- Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 24.03.2026 Printed from counselvise.com I.T.A. No.492/Chny/26 4 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. Printed from counselvise.com "