SHANMUGAVEL SUDARARAJAN,DINDIGUL V. ITO, WARD-1, , DINDIGUL

ITA 2327/CHNY/2025

AI Insights

The case involves Shanmugavel Sundararajan, who was penalized under section 271D of the Income Tax Act for violating section 269SS, as he received the entire sale consideration of Rs. 14 lakhs in cash from the sale of immovable property. The initial penalty was confirmed by the CIT(A) due to the non-appearance of the assessee. The assessee's appeal to the Income Tax Appellate Tribunal was also marked by his absence, leading the Departmental Representative to argue for dismissal based on habitual default in prosecuting the case. However, the Tribunal decided to remand the case back to the CIT(A) for a fresh examination, emphasizing the need for the assessee to substantiate his case adequately in the next hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785322 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Appeal Filed On: 22-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KRISHNA MURTHY AT
• Keywords: Set aside

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, \u000eाियक सद\u0012 एवं \u0001ी एस. आर. रघुनाथा, लेखा सद\u0012 क े सम BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2327/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2018-19 Shanmugavel Sundararajan, 27, Mounspuram, 3rd Lane, Dindigul-624 001. v. The ITO, Ward-1, Dindigul. [PAN: BTRPS 8441 N] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : None \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. Krishna Murthy AT, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 23.10.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 27.10.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [CIT(A)] dated 24.06.2025 for Assessment Year 2018-19. 2. Brief facts of the case are that the AO levied penalty u/s 271D of the Act for the contravention of section 269SS of the Act as the assessee had sold immoveable property for the value of Rs.14 lakhs and received the entire sale consideration in cash. Aggrieved by the penalty u/s 271D, Printed from counselvise.com ITA No.2327/Chny/2025 (AY 2018-19) Shanmugavel Sundararajan :: 2 :: the assessee filed appeal before the ld. CIT(A). However, before the ld.CIT(A), assessee didn’t appear, hence the ld.CIT(A) dismissed the appeal ex-prate confirming the penalty u/s 271D of the Act. Now, assessee is further in appeal before us. 3. Before us also none appeared for the assessee despite service of notice for hearing. The Ld. Addl. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee is habitual defaulter in prosecuting the case. He further argued that no explanation has been given by the assessee for the contravention of section 269SS of the Act. 4. We have gone through the orders of lower authorities and submission addressed by the ld. Departmental Representative. We are of the considered view that in the interest of justice, assessee should be given one more opportunity before the ld.CIT(A) to plead and file all relevant evidences/documents to prosecute its appeal. Therefore, in the light of aforesaid factual position, we deem it fit to set aside the appeal to the file of the ld.CIT(A) for de novo adjudication of appeal on merits. The Ld.CIT(A) who shall proceed for de novo adjudication of appeal after providing proper opportunity of hearing to the assessee as per law. The assessee is directed to substantiate its case forthwith without any fail. We make it clear that if assessee again fails to prosecute the penalty appeal before the ld.CIT(A), the impugned order of the Ld.CIT(A) will prevail and no leniency will be given to the assessee. Printed from counselvise.com ITA No.2327/Chny/2025 (AY 2018-19) Shanmugavel Sundararajan :: 3 :: 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced on the 27th day of October, 2025, in Chennai. Sd/- (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, !दनांक/Dated: 27th October, 2025. TLN आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकरआयु\u000f/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\bितिनिध/DR 5. गाड\u0018फाईल/GF Printed from counselvise.com "