SHANMUGA VELAYUDA GOUNDER SENDIL KUMARAN,TIRUPUR V. ACIT, CIRCLE-1, TIRUPUR

ITA 2090/CHNY/2025

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The case involves Shanmuga Velayuda Gounder Sendil Kumaran, an individual and doctor by profession, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment year 2017-18. The primary issue arose when a part of the capital gain amounting to Rs.40,12,276 was treated as unexplained credit under section 69 of the Income Tax Act, 1961, and taxed under section 115BBE. The assessee's appeal was initially dismissed by the CIT(A) due to non-participation in the proceedings, despite multiple opportunities given to respond. The Tribunal found that the CIT(A) had not considered the submissions made by the assessee and thus remanded the case back to the CIT(A) for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773046 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Appeal Filed On: 29-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: DARSHAN BOTHRA S; C.A
• Keywords: Set aside; Unexplained cash credit; Principle of natural justice

Judgement Text

" आयकर अपील य अ धकरण, ‘सी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI \u0015ी मनु क ुमार ग\u0019र, \u000eया\u001aयक सद य एवं \u0015ी एस. आर. रघुनाथा, लेखा सद य क े सम# BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2090/Chny/2025 \u001aनधा$रण वष$ / Assessment Year: 2017-18 Shanmuga Velayuda Gounder Sendil Kumaran, No. 774, P.N. Road, Tirupur – 641 602. Tamil Nadu. vs. ACIT, Circle -1, Tirupur. [PAN: AJCPS-0223-Q] (अपीलाथ&/Appellant) ('(यथ&/Respondent) अपीलाथ& क) ओर से/Appellant by : Mr. Darshan Bothra S, C.A '(यथ& क) ओर से/Respondent by : Ms. Anitha, Addl. CIT सुनवाई क) तार ख/Date of Hearing : 17.09.2025 घोषणा क) तार ख/Date of Pronouncement : 24.09.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM: This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-18, vide order dated 30.05.2025. 2. The brief facts of the case are that the assessee is an individual, doctor by profession, filed his return of income for the A.Y. 2017-18 on 05.08.2017 u/s.139(1) of the Income Tax Act, 1961 (hereinafter the ‘Act’) admitting a total income of Rs.4,98,14,600/-. The assessee’s case was selected for scrutiny and assessment was Printed from counselvise.com :-2-: ITA. No:2090 /Chny/2025 completed u/s.143(3) of the Act on 28.12.2019 by treating the part of the capital gain amounting to Rs.40,12,276/- as unexplained credit u/s.69 of the Act and levied tax u/s.115BBE of the Act. 3. Aggrieved, assessee preferred an appeal before the Ld.CIT(A). The Ld.CIT(A) dismissed the appeal of assessee by upholding the order of AO and sustained the additions since the assessee did not participate in the assessment proceedings by passing an order dated 30.05.2025. Aggrieved by the impugned order of the Ld.CIT(A), the assessee is in appeal before us. 4. The Ld.AR for the assessee submitted that the ld.CIT(A) has passed the impugned order without participation of the assessee and also not considered the submissions made along with the appeal papers. Therefore, the ld.AR prayed for setting aside the order of ld.CIT(A) and remand the issue back to the file of ld.CIT(A) by affording one more opportunity in the interest of natural justice. 5. Per contra, the ld.DR supported the order of lower authorities. 6. We have heard both the parties, perused materials available on record, and gone through orders of the authorities below. We note that the AO has passed an order by treating the part of the capital gain amounting to Rs.40,12,276/- as unexplained credit u/s.69 of the Act and levied tax u/s.115BBE of the Act. The same has been confirmed by the ld.CIT(A) without the participation of the assessee in the appellate proceedings. We note that ld.CIT(A) had given 4 (Four) opportunities from 29.12.2020 to 21.05.2025 as per para 5.1 (page No.3) of the order by sending notices to the email ID provided in Form 35 by the assessee and the assessee has not responded to any of the notices. Printed from counselvise.com :-3-: ITA. No:2090 /Chny/2025 7. Therefore, we set aside the order of the ld.CIT(A), to meet the ends of justice we remit the matter back to the file of the ld. CIT(A), NFAC for de novo adjudication. The assessee is directed to be diligent during the appellate proceedings and submit a written submission along with all relevant supporting documents before the ld. CIT(A) at the earliest opportunity without seeking unnecessary adjournment. 8. In the result, the appeal filed by the assessee is allowed for the statistical purposes. Order pronounced in the court on 24th September, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार ग\u0019र) (MANU KUMAR GIRI) \u000eया\u001aयक सद य/JUDICIAL MEMBER (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखासद य/ACCOUNTANT MEMBER चे\u000eनई/Chennai, -दनांक/Dated, the 24th September, 2025 SP आदेश क) '\u001aत/ल0प अ1े0षत/Copy to: 1. अपीलाथ&/Appellant 2. '(यथ&/Respondent 3.आयकर आयु2त/CIT 4. 0वभागीय '\u001aत\u001aन ध/DR 5. गाड$ फाईल/GF Printed from counselvise.com "