SIVASUBRAMANIAM BANUREKHA,CUDDALORE V. ITO WARD 1 , CUDDALORE

ITA 1269/CHNY/2025

AI Insights

The case involves an appeal by Sivasubramaniam Banurekha against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the addition of ₹1,99,80,000 made by the Assessing Officer. This addition was related to the purchase and sale of immovable properties, treated as unexplained investment and undisclosed capital gains, respectively. The Assessing Officer had completed the assessment under sections 147, 144, and 144B of the Income Tax Act, 1961, due to non-compliance by the assessee in responding to notices. The Tribunal noted the assessee's lack of response was not willful and granted a remand for a fresh assessment, imposing a cost of ₹25,000.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 708178 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V.SUPRAJA
• Assessee Lawyers: J. SARAVANAN
• Keywords: Condonation of delay; Reassessment proceedings; Unexplained investment; Capital Gains
• Section: 147; 148; 142(1); 69; 139

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी अिमताभ शुƑा, लेखा सद˟ क े समƗ Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Amitabh Shukla, Accountant Member आयकर अपील सं./I.T.A. No.1269/Chny/2025 िनधाŊरण वषŊ/Assessment Year: 2015-16 Sivasubramaniam Banurekha, 81, Seetharam Nagar, Cuddalore Court Buildings S.O., Cuddalore 607 001. [PAN:BMKPB4558D] Vs. The Income Tax Officer, Ward 1, Cuddalore. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri J. Saravanan, Advocate ŮȑथŎ की ओर से/Respondent by : Ms. V. Supraja, Addl. CIT सुनवाई की तारीख/ Date of hearing : 15.07.2025 घोषणा की तारीख /Date of Pronouncement : 17.07.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 09.07.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2015-16. 2. We find that this appeal is filed with a delay of 213 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we I.T.A. No.1269/Chny/25 2 find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication. 3. The assessee raised 3 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the addition of ₹.1,99,80,000/- made by the Assessing Officer towards purchase of immovable property and sale of immovable property by passing exparte order. 4. We note that according to the Assessing Officer, the assessee sold immovable property (SRO, Ambattur, Chennai) at ₹.52,80,000/- and purchased immovable property (JSRO-II, Cuddalore) at ₹.1,47,00,000/- and not filed return of income for the AY 2015-16. After following due procedure, the Assessing Officer proceeded to initiate reassessment proceedings by issuing notice under section 148 of the Income Tax Act, 1961 [“Act” in short]. However, there was no response from the assessee. The Assessing Officer issued various notices under section 142(1) of the Act dated 20.10.2022, 17.11.2022 & 19.12.2022. The Assessing Officer also issued show-cause notices dated 06.01.2023 and 25.01.2023. However, there was no response from the assessee or filed return of income. Accordingly, the Assessing Officer completed the assessment I.T.A. No.1269/Chny/25 3 under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 22.02.2023 by treating the purchase of immovable property at ₹.1,47,00,000/- as unexplained investment under section 69 r.w.s. 115BBE of the Act and the sale consideration towards sale of property at ₹.52,80,000/- as undisclosed capital gains and determined the income of the assessee at ₹.1,99,80,000/-. On appeal, the ld. CIT(A) dismissed the appeal of the assessee since the assessee did not comply with the hearing notices or filed any documentary evidences in support of grounds of appeal. 5. The ld. AR Shri J. Saravanan, Advocate submits that non- compliance to the hearing notices issued by the ld. CIT(A) is neither wilful nor deliberate but due to circumstances beyond assessee’s control. He drew our attention to ITR-V evidencing filing of return of income on 16.02.2023 placed at page 2 of the paper book. He further drew our attention to acknowledgement for filing of response letters dated 16.02.2023 at page 3, 4 & 5 of the paper book. The ld. AR vehemently argued that the assessee has filed the details and the Assessing Officer has not considered the above details before completing the assessment. The ld. AR prayed that, one more opportunity may be afforded to the assessee to pursue her case before the Assessing Officer. I.T.A. No.1269/Chny/25 4 6. The ld. DR Ms. V. Supraja, Addl. CIT opposed the same and drew our attention to para 2 of the impugned order as well as para 2 of the assessment order and argued that the ld. CIT(A) as well as the Assessing Officer afforded ample opportunities to the assessee, but, it was not availed. She vehemently argued that first of all, the assessee has not filed return of income under section 139 of the Act and secondly, the Assessing Officer issued notice under section 148 of the Act dated 30.03.2022 requiring the assessee to file return of income on or before 30.04.2022, which was not complied with and pleaded that costs may be imposed, in case this Tribunal affords an opportunity by remanding the matter to the file of the Assessing Officer for fresh consideration. 7. Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 22.02.2023. On perusal of the orders of authorities below, we note that there was no assistance from the assessee either before the Assessing Officer or against hearing notices issued by the ld. CIT(A). We note that the assessee has not filed return of income under section 139 of the Act or in response to the notice under section 148 of the Act dated 30.03.2022. Further, the assessee has not at all furnished any details in response to the notices issued under section 142(1) of the I.T.A. No.1269/Chny/25 5 Act dated 20.10.2022, 17.11.2022, 19.12.2022 and moreover, there was no compliance against the show-cause notices issued under section 144 of the Act dated 06.01.2023 and 25.01.2023. Taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.25,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering the written submissions/ documentary evidences as may be filed by the assessee to substantiate her claim. Thus, the grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 17th July, 2025 at Chennai. Sd/- Sd/- (AMITABH SHUKLA) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 17.07.2025 Vm/- I.T.A. No.1269/Chny/25 6 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "