SHRI VELMURUGAN,CUDDALORE V. ITO, WARD-4, CUDDALORE

ITA 996/CHNY/2025

AI Insights

The case involves an appeal by Shri Velmurugan against the order of the Learned Commissioner of Income Tax (NFAC), Delhi, which confirmed the addition of Rs.1,33,80,000 to the assessee's income on account of unexplained cash deposits. The Assessing Officer had initially made this addition under sections 147 and 144B of the Income-tax Act, 1961, due to the assessee's failure to provide satisfactory documentary evidence explaining the source of the cash deposits. The CIT(A) upheld this addition ex-parte as the assessee did not respond to the hearing notices. The assessee, represented by Shri P. Venkatesan, Advocate, argued that the failure to submit the necessary documents was due to technical glitches and requested another opportunity to present his case. The Departmental Representative supported the lower authorities' decisions, emphasizing the lack of documentary evidence during the demonetization period.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712242 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: P.VENKATESAN
• Keywords: Set aside; Principle of natural justice
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी यस यस िव\u001bने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.996/Chny/2025 िनधा 8रण वष8 /Assessment Year: 2018-19 Shri Velmurugan, 150A Vishnu Agencies, Pillayar Koil Street, Avinagudi Post, Thittagudi Taluk, Cuddalore – 606 111. [PAN: AFRPV 9529F] Vs. The Income Tax Officer, Ward-4, Cuddalore. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri P.Venkatesan, Advocate HIथF की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 26.06.2025 घोषणा की ता रीख /Date of Pronouncement : 30.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 14.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 27.03.2023. Printed from counselvise.com ITA No.996/Chny/2025 Shri Velmurugan :- 2 -: 2. The A.O in the assessment order passed order u/s. 147 r.w.s 144B of the Act has made addition of Rs.1,33,80,000/- on account of cash deposits, as the assessee failed to file proper documentary evidences to explain the source of cash deposits. Aggrieved by the addition, the assessee preferred an appeal before Ld. CIT(A). However, the Ld. CIT(A) confirmed the addition ex-parte as the assessee has not responded to the hearing notices with appropriate submissions and explanations. 3. At the outset, the Ld. Authorized Representative (A.R) of the assessee submitted that the assessee could not upload the copy of the agreement entered into with M/s. Weizmann Forex Ltd. dated 02.03.2012, either before the A.O or before the Ld. CIT(A), due to technical glitches. The said agreement, along with the related ledger account, explains the source of the cash deposits as being commission receipts from M/s. Weizmann Forex Ltd. Therefore, it was prayed that one more opportunity be granted to the assessee to substantiate his case before the A.O. 3. On the other hand, the Ld. Departmental Representative (D.R) relied on the orders of the lower authorities and submitted that the Printed from counselvise.com ITA No.996/Chny/2025 Shri Velmurugan :- 3 -: assessment order was passed ex-parte, as the assessee failed to produce documentary evidence to explain the cash deposits made during the demonetization period. 4. We have heard the rival submissions and perused the materials available on record. The A.O has made an addition of cash deposit of Rs.1,33,80,000/- u/s. 69A of the Act on the ground that the assessee failed to furnish any documentary evidence to support the source of cash deposits. Before us, the Ld. A.R has explained that the source of cash deposits was commission income received from M/s. Weizmann Forex Ltd., and has now submitted a copy of the agreement and ledger account in support of this claim. In the interest of justice and in accordance with the principles of natural justice, we are of the view that the assessee should be given one more opportunity to substantiate his case before the A.O. Accordingly, we set aside the order of the Ld. Addl. CIT(A) and remit the matter back to the file of the A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish all relevant details for fresh consideration. Printed from counselvise.com ITA No.996/Chny/2025 Shri Velmurugan :- 4 -: 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 30th day of July, 2025 at Chennai. Sd/- Sd/- (यस यस िव\u001bने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 30th July, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "