THANAN JAYAN SARATHKUMAR,THIRUVALLUR V. INCOME TAX OFFICER, TAMBARAM

ITA 183/CHNY/2025

AI Insights

The case involves Shri Thanan Jayan Sarathkumar, the appellant, who filed an appeal against the order of the Commissioner of Income Tax (Appeals) in Delhi, which confirmed an ex-parte assessment order made by the Assessing Officer. The assessment was based on the assessee's alleged income of Rs. 1,18,25,185 from gaming activities with M/s. Gameskrafts Technologies P.Ltd, which was not reported in his return. The assessee did not respond to multiple notices from both the Assessing Officer and the CIT(A), leading to the ex-parte order. The Tribunal, considering the principles of natural justice, decided to set aside the order and remand the case back to the Assessing Officer, allowing the assessee another opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126066 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: V. DHANASEKARAN
• Keywords: Set aside; Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सी’ \u000fा यपीठ, चे\u0014ई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI \u0016ी मनु क ुमा र िग\u001bर ,\u000fा ियक सद एवं \u0016ी एस . आर . रघुना था , लेखा सद क े सम& BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.183/Chny/2025 (िनधा\u0005रण वष\u0005 / Assessment Year: 2022-23) Shri Thanan Jayan Sarathkumar, # 34, Jaya Nagar Main Road, Thiruvallur-602 001. Vs The Income Tax Officer, Non-Corporate Ward-22(4), Tambaram. PAN : ESSPS-3822-N (अपीलाथ\u000f/Appellant) (\u0010\u0011यथ\u000f/Respondent) अपीलाथ\u000fक\u0014ओरसे/ Appellant by : Mr.V.Dhanasekaran, Advocate \u0010\u0011यथ\u000fक\u0014ओरसे/Respondent by : Ms. Anitha, Addl.CIT सुनवाईक\bतारीख/Date of hearing : 09.04.2025 घोषणाक\bतारीख /Date of Pronouncement : 25.04.2025 आदेश आदेश आदेश आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against the order of the Ld. Ld. Commissioner of Income Tax (Appeals) (NFAC) Delhi [CIT(A)] dated 28.11.2024 for Assessment Year 2022- 23. 2. Brief facts are as follows: The assessee is an individual filed his return of income on 20.07.2022 for AY 2022-23 declaring income of Rs.8,28,950/-. As per information with the department, assessee had earned income of Rs.1,18,25,185/- from winning of gaming activities with M/s.Gameskrafts Technologies P.Ltd. Subsequently, the case was selected for scrutiny and several notices / show cause notice were issued to the assessee, but the assessee has not responded to the same. Therefore, the AO passed ex-parte order u/s.144 r.w.s 144B of the Act thereby making addition of Rs.1,18,25,185/-. 2 ITA No. 183/Chny/2025 3. Aggrieved, the assessee challenged order of assessment before the CIT(A). However, despite several notices issued, the assessee neither filed written submissions nor appeared before the CIT(A) and hence, the CIT(A) confirmed order of the AO. Therefore, now, the assessee in appeal before us. 4. We have heard both the parties and perused records. Before us, the ld. Counsel for assessee submitted that the CIT(A) has sent the notices, however, the assessee missed to receive notices hence the appeals were not prosecuted before the ld. CIT(A). Since the AO has passed an ex-parte order u/s.144 r.w.s 144B of the Act, he prayed that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his case before the AO. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence, no lenient view is to be taken in this case and prayed for dismissal of the appeal. 5. Though, we concur with the submissions of Ld. Sr. DR however, keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices for the reasons stated above. Since the assessee has not appeared before the lower authorities and ex-parte order was passed u/s.144 r.w.s. 144B of the Act by the AO, the impugned order is set aside and the appeal is restored back to the file of AO for denovo assessment, after affording proper opportunity of hearing to the assessee, subject to cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of the order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of 3 ITA No. 183/Chny/2025 Madras. The proof of the cost deposit will be furnished by the Assessee before AO. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with proceedings on merits as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute the case diligently. 6. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th April, 2025 Sd/- Sd/- (एस . आर . रघुनाथा) ( मनु क ुमार िग\u001bर ) ( S.R.Raghunatha ) ( Manu Kumar Giri) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य / Accountant Member \u000fाियक सद / Judicial Member चे\u0019ई/Chennai, \u001bदनांक/Date: 25.04.2025 DS आदेश क\u0007 \bितिलिप अ\u000eेिषत/Copy to: 1.Appellant 2.Respondent 3. आयकर आयु\u0013/CIT Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड फाईल/GF. "