THEERTHAKUMARASAMY ELECTRICALS,ERODE V. .ITO, WARD-2(1), ERODE

ITA 2681/CHNY/2024

AI Insights

The case involves Theerthakumarasamy Electricals, which faced an assessment order under section 144 of the Income-tax Act, 1961, due to non-compliance with a notice under section 148 following substantial cash deposits during the demonetization period. The A.O assessed the total income at Rs. 17,94,300, which was contested by the assessee. The appeal to the CIT(A) was dismissed as the assessee failed to explain the source of the cash deposits. The Tribunal found that both the initial and appellate orders were passed ex-parte due to non-compliance by the assessee and decided to remit the case back to the A.O for a fresh hearing, emphasizing the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107247 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANITHA
• Assessee Lawyers: S. SRIDHAR; ERODE
• Keywords: Set aside; Principle of natural justice
• Section: 148; 144

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी जॉज\u001c जॉज\u001c क े, उपा \u001e\u001f एवं \u0019ी जगदीश, लेखा सद' क े सम\u001f BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2681/Chny/2024 िनधा \u001cरण वष\u001c /Assessment Year: 2017-18 Theerthakumarasamy Electricals, 25, Main Road, Arachalur Post, Arachalur, Erode-638 101. Vs. The Income Tax Officer, Ward-2(1), Erode. [PAN: ABDFS 9503L] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri S. Sridhar, Advocate (Erode) IJथG की ओर से /Respondent by : Ms. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 18.12.2024 घोषणा की ता रीख /Date of Pronouncement : 20.12.2024 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 Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 27.12.2019 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 27.12.2019. ITA No.2681/Chny/2024 :- 2 -: 2. The assessee has made cash deposits of Rs.12,27,700/- during demonetization period and has not filed return of income. The A.O has issued notice u/s. 148 of the Act which remains not complied and therefore, the A.O has passed order u/s. 144 of the Act assessing total income of Rs. 17,94,300/-. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has also dismissed the appeal as the assessee has not explained the source of cash deposited during demonetization period. 3. The Ld. Authorized Representative (A.R) of the assessee before us has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore the case may be remitted back to the A.O for fresh consideration in the interest of justice. 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 5. We have heard the rival submissions, and perused the materials available on record. On perusal of the orders of A.O as well as Ld. CIT(A), we find that the orders have been passed ex-parte for the non- compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be ITA No.2681/Chny/2024 :- 3 -: remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the Assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024. Sd/- Sd/- (जॉज\u001c जॉज\u001c क े) (George George K) उपा \u001e\u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 20th December, 2024. EDN/- ITA No.2681/Chny/2024 :- 4 -: आदेश क\u0019 \bितिल\u001cप अ\u001dे\u001cषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Coimbatore 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "