SHAJU KRISHNAN,PALAKKAD V. ITO, WARD 1 & TPS, PALAKKAD

ITA 860/COCH/2024

AI Insights

The case involves Shaju Krishnan, who was an employee of M/s. Chamiyar Fuels, Kottayi, and did not file his income tax return for the Assessment Year 2018-19. The Income Tax Officer (ITO) issued a notice under section 148 of the Income Tax Act, 1961, upon discovering cash deposits totaling Rs. 59,97,500. In response, Krishnan filed a return declaring an income of Rs. 4,35,000, which was subsequently assessed with an addition of Rs. 50,97,500 as unexplained money under section 69A of the Act. The CIT(A) dismissed his appeal exparte for non-prosecution, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23386 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Other Referred Cases: PCIT vs. Premkumar Arjundas Luthra
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: SHIVADAS CH E TTOOR
• Section: 147; 148; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 860/Coch/2024 Assessment Year: 2018-19 Shaju Krishnan .......... Appellant Mangottukalam House Thenkurissi Post, Alathur Palakkad 678671 [PAN: DXZPK6299G] Vs. The Income Tax Officer .......... Respondent Ward - 1 &TPS, Palakkad Appellant by: Shri Shivadas Chettoor, CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 19.12.2024 Date of Pronouncement: 21.01.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 08.08.2024 for Assessment Year (AY) 2018-19. 2. Brief facts of the case are that the assessee was an employee of M/s. Chamiyar Fuels, Kottayi. The appellant has not filed his return of income for AY 2018-19. On receipt of information that the 2 ITA No. 860/Coch/2024 Shaju Krishnan appellant had made cash deposits aggregating to Rs. 59,97,500/- the Income Tax Officer, Ward -2, Palakkad (hereafter “the AO”) issued notice u/s. 148 of the Income Tax Act, 1961 (the Act) on 07.04.2022 directing the appellant to file return of income of the year under consideration. In response the appellant filed the return of income on 26.04.2022declring total income at Rs. 4,35,000/-. Against the said return of income, the assessment was completed by the assessment vide order dated 12.03.2024 passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act by adding Rs. 50,97,500/- as unexplained money u/s. 69A of the ct. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal exparte for non prosecution. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. We have heard the rival contentions of both the parties and perused the material available on record. We find that the learned CIT(A) dismissed the appeal in limine for non prosecution. It is the settled position of law that the CIT(A), even while disposing of the appeal exparte, is duty bound to dispose of the appeal on merits. Reliance in this regard can be placed on the decision of the Hon'ble Bombay High Court in the case of PCIT vs. Premkumar Arjundas Luthra 279 CTR 614. Therefore, in the light of the above legal 3 ITA No. 860/Coch/2024 Shaju Krishnan position we are of the considered view that the matter requires to be remanded to the file of the CIT(A) with the direction to dispose of the appeal de novo on merits after affording reasonable opportunity of hearing to the assessee. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes Order pronounced in the open court on 21st January, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 21st January, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "