SUYAMBULINGA NADAR DHANASEKAR,CHENNAI V. ITO, NCW-7(1), CHENNAI

ITA 879/CHNY/2025

AI Insights

The case involves an appeal by Suyambulinga Nadar Dhanasekar against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Center, Delhi, concerning the assessment year 2017-18. The primary issue was the addition of Rs.2,07,38,876 under section 69A of the Income Tax Act, 1961, attributed to unexplained credits, including cash deposits during the demonetization period. The assessee contended that the lower authorities passed ex-parte orders due to his inability to comply, attributed to personal health issues, including COVID-19. The Tribunal noted the lack of a speaking order from the Assessing Officer and the absence of proper inquiries, leading to the decision to remand the case for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 653067 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Other Referred Cases: TIN box 249 ITR 216
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTHAM S.MUKUNDAN; IRS
• Assessee Lawyers: Y. SRIDHAR; F
• Keywords: Set aside; Corroborative evidences; Unexplained cash credit

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.879/Chny/2025 Assessment Years: 2017-18 Suyambulinga Nadar Dhanasekar, No.21, Kamaraj Nagar Main Road, Avadi, Chennai-600 071. [PAN: ADOPD2286L] Income Tax Officer, Non-Corp Ward-7(1), Chennai. (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee by : Shri Y.Sridhar, F.C.A. प्रत्यर्थी की ओर से /Revenue by : Ms.Gautham S. Mukundan, IRS सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : .06.2025 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 / 1072061559(1) dated 10.01.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment year 2017-18. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time. 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- ITA No. 879 /Chny/2025 Page - 2 - of 4 parte orders in case of the assessee qua the issue of addition of Rs.2,07,38,876/- u/s 69A on account of unexplained credits (including cash deposits during demonetization period). The Ld. Counsel submitted that the Ld.AO had noted the assessee has not filed any return of income in time and one filed on 17.04.2018 was deemed as an invalid return. Admittedly, the assessee could not make compliance before the lower authorities on account of compelling pre-occupation with personal issues. It was accordingly requested that one last opportunity be given to explain its case before the lower authorities. The Ld.AR submitted personal assurance to make due timely compliances before the lower authorities. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. 4.0 We have heard rival submissions in the light of material available on records. We have noted that the assessee reportedly could not make compliances on account of his health issues, including affliction with Covid-19. It was submitted that the staff attending to his business requirement were not adequately conversant with tax matters and the resultant non-compliance. We are conscious of the fact that no litigant gets benefits by non-prosecution of its case. As per facts recorded by the lower authorities in thier orders, opportunities to the assessee for filing the required details which were not satisfactorily filed by the assessee leading to making of the impugned addition. We have however noted ITA No. 879 /Chny/2025 Page - 3 - of 4 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 leading to dismissal of the appeal for want of adequate persecution by the assessee. 5.0 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. 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. ITA No. 879 /Chny/2025 Page - 4 - of 4 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. 6.0 In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on , June-2025 at Chennai. (एबी टी. वर्की) (ABY T VARKEY) न्याधयक सदस्य / Judicial Member (अधमताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, धदनांक/Dated: , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "