SIVANESAN GOKILAVANI,MADURAI V. INCOME TAX OFFICER, NON-CORPORATE WARD 2(2), MADURAI, INCOME TAX OFFICE, CR BUILDING, MADURAI

ITA 1353/CHNY/2025

AI Insights

The case involves Sivanesan Gokilavani, an individual engaged in the trading business of cements and steel, who appealed against the assessment order for the Assessment Year 2017-18. The Assessing Officer had made additions to the assessee's income, citing unexplained cash deposits during the demonetization period and other discrepancies. The assessee contested these additions, claiming insufficient opportunity to explain her case. The Tribunal found merit in the assessee's request for another opportunity to present her case and thus remitted the matter back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711402 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Set aside; Principle of natural justice
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग र, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1353/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 Sivanesan Gokilavani, No.13/A-1, Krishnapuram Colony, 2nd Street, Madurai – 625 014. [PAN: BGVPG 6518H] Vs. The Income Tax Officer, Non Corporate Ward-2(2), Madurai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथG की ओर से/ Appellant by : Shri T. Vasudevan, Advocate IJथG की ओर से /Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/Date of Hearing : 16.07.2025 घोषणा की तारीख /Date of Pronouncement : 25.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Addl/JCIT(A), Agra [hereinafter “Addl. CIT(A)”] dated 30.12.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 15.11.2019. Printed from counselvise.com ITA No.1353/Chny/2025 Sivanesan Gokilavani :- 2 -: 2. There is a delay of 70 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The assessee is an individual engaged in the business of trading business in cements and steel. The assessee filed her return of income declaring total income of Rs.31,990/-. The A.O in the assessment order made addition of Rs.5,05,349/- u/s. 69A of the Act on account of cash deposits during demonetization period. Aggrieved by this addition, the assessee preferred an appeal before Ld. Addl. CIT(A). On appeal, the Ld. Addl. CIT(A) in para 3.2 has observed that the assessee has failed to provide adequate corroborative documentation for some claims and therefore, upheld the addition. 4. At the outset, the Ld. Authorized Representative has submitted that neither the A.O nor the Ld. Addl. CIT(A) had granted sufficient time to explain the various additions made. It was therefore prayed Printed from counselvise.com ITA No.1353/Chny/2025 Sivanesan Gokilavani :- 3 -: that one more opportunity be granted to the assessee to substantiate her case. 5. On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The A.O. made additions of Rs.1,61,200/-, Rs.3,200/-, Rs. 11,000/-, and Rs. 15,000/-, being amounts received from Subbu Traders, Mr. Sivanesan, Senbharaj, and Sundarapandian, respectively as no corresponding entries were found in the sales register or in the opening balance of sundry debtors. The A.O. further made an addition of Rs.5,445/- on account of a difference in the discount amount, which the assessee failed to explain seeking one week time. Additionally, an amount of Rs. 49,000/- was added as unexplained cash deposited during the demonetization period. The Ld. A.R. reiterated that the assessee was not provided with sufficient opportunity to explain her case before the A.O, which led to the additions being made without adequate representation. In the interest of justice and keeping in view the principles of natural justice, we are of the opinion that the assessee should be provided with another Printed from counselvise.com ITA No.1353/Chny/2025 Sivanesan Gokilavani :- 4 -: opportunity of hearing to substantiate her claims before the A.O. Accordingly, we set aside both the orders passed by the A.O. and the Ld. Addl. CIT(A), and remit the matter back to the file of the A.O for denovo adjudication. The A.O. is directed to provide reasonable opportunity to the assessee and pass a fresh order in accordance with law. The assessee is also directed to appear before the A.O. on the date of hearing without fail and furnish complete details for proper consideration of her case. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 25th day of July, 2025 at Chennai. Sd/- Sd/- (मनु क ुमार िग र) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 25th 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, Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "