SIVANANDAM SANKAR,SALEM V. ACIT, CIRCLE-I, HOSUR

ITA 396/CHNY/2025

AI Insights

The case involves an appeal by Sivanandam Sankar against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, which confirmed an addition of Rs. 38,45,000 under section 69A of the Income Tax Act, 1961, due to unexplained cash deposits in the assessee's bank account. The Tribunal noted that both the lower authorities had passed ex-parte orders without sufficient opportunity for the assessee to be heard. The Tribunal found that the Assessing Officer had not conducted proper inquiries and had not passed a speaking order. The Tribunal decided to set aside the lower authorities' orders and remand the matter back to the Assessing Officer for a fresh examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 312085 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: N.CHANDRASEKAR
• Keywords: Set aside; Opportunity of being heard; Corroborative evidences

Judgement Text

"आयकर अपीलीय अधिकरण, ‘बी’न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री जॉजज जॉजज क े, उपाध्यक्ष एवं श्री अमिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.396/Chny/2025 Assessment Years: 2017-18 Sivanandam Sankar, No.3/2-B Sanyasigundu Road, Kitchipalayam, Salem, Tamil Nadu-636 001 [PAN: AWGPS5742P] Assistant Commissioner of Income Tax, Circle-1, Hosur. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri N.Chandrasekar, Advocate प्रत्यर्थी की ओर से /Revenue by : Ms.Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 24.04.2025 घोषणा की तारीख /Date of Pronouncement : 02.05.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / NFAC / S / 250 / 2024-25 / 1071055204(1) dated 10.12.2024 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2017-18. 2.0 At the outset, the Ld. Counsel for the assessee submitted that both the lower authorities the Ld.AO as well as Ld. CIT(A) has passed ex- parte orders in case of the assessee. It was submitted that the only issue under consideration is an addition u/s 69A of Rs.38,45,000/- on ITA No.396/Chny/2025 Page - 2 - of 4 account of cash deposits in bank account treated as unexplained. The Ld. Counsel for the assessee submitted that the Ld. First Appellate Authority has also confirmed the addition by passing an ex-parte order without giving sufficient opportunity of being heard. The Ld.AR pleaded that the assessee admittedly, on account of personal reasons, could not make timely compliances to the statutory notices. It was stated that the assessee has all the documents in possession to prove the source of cash. It was accordingly pleaded that in the interest of justice the matter may be restored back to the file of Ld.AO for readjudication. The Ld. Counsel assured that full compliance would now be made to the statutory notices. The Ld. DR would like to make us believe on the correctness of the order of lower authorities. 3.0 We have heard rival submissions in the light of material available on records. As per facts recorded by the Ld. AO in his order, he had given opportunities to the assessee for filing the required details which were not satisfactorily filed by the assessee leading to his making the impugned addition. We have however noted that the order passed by the Ld. AO is not a speaking order and clear facts have not been brought on records before making the impugned addition. There are also indications of no enquiries conducted by the Ld.AO. Before the Ld. First Appellate Authority also the conduct of the assessee was far from satisfactory as far as compliance to statutory notices are concerned ITA No.396/Chny/2025 Page - 3 - of 4 leading to dismissal of the appeal for want of adequate persecution by the assessee. 3.1 We have thus noted that inadequate submission of details and evidences, before the lower authorities qua sources of deposits in assessee’s bank account lies at the core of the controversy. The assessee has filed a paper book before us alluding genuineness of its claim. We are therefore of the view that ends of justice would be met if the assessee is given one last opportunity to present its case and file all supporting evidences before the Ld.AO. The assessing officer is the primary authority under the income tax act to be examine facts of a case in the light of available evidences before determining correct taxable income of a tax payer. We therefore set aside the order of lower authorities on this issue and we direct the Ld. AO to readjudicate the matter de novo by examining the matter afresh in accordance with law and by passing a speaking order. Reliance in this regard is placed upon the decision of Hon’ble Apex Court in the case of TIN box 249 ITR 216. The Ld. AO shall give opportunities of being heard to the assesse and it shall be bounden upon the assesse to comply with the notices issued by the Ld. AO. Any non-compliance on the part of the assesse can be adversely viewed. Accordingly, all the grounds of appeal raised by the assesse on this issue are allowed for statistical purposes. ITA No.396/Chny/2025 Page - 4 - of 4 4.0 In the result, the appeal is allowed for statistical purposes. Order pronounced on 2nd , May -2025 at Chennai. Sd/- (जॉजज जॉजज क े) (GEORGE GEORGE K) उपाध्यक्ष / vice president Sd/- (अधिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: 2nd , May -2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Salem 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "