V.M. RAJASEKHARAN,CHENNAI V. DCIT, NCC-17(1), CHENNAI

ITA 1063/CHNY/2025

AI Insights

The case involves V.M. Rajasekharan, an employee of ITC Ltd., who appealed against the addition of Rs. 72,04,433 to his income under the head 'Capital Gains' for the Assessment Year 2017-18. This addition was initially made by the Assessing Officer under section 143(3) of the Income-tax Act, 1961. The assessee's appeal to the CIT(A) was dismissed without consideration of his submissions, leading to the current appeal before the Income Tax Appellate Tribunal. The Tribunal found that the CIT(A) had not considered the assessee's submissions and remitted the case back to the CIT(A) for a fresh assessment in accordance with the law.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712865 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• 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: R. ANITHA
• Assessee Lawyers: S.SUBRAMANIAM; C.A
• Keywords: Capital Gains; Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी यस यस िव\u001bने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम' BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1063/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2017-18 V.M. Rajasekharan, C/o. C.A S.Subramaniam/ CA P.V. Dilip Kumar, Sreedhar Suresh & Rajagopalan, LLP Chartered Accountants, 3B, Green Haven, New No.26, Gandhi Nagar, Third Main Road, Adyar, Chennai – 600 020. [PAN: AASPR 9749M] Vs. The Dy. Commissioner of Income Tax, Non Corporate Circle-17(1), Chennai. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थG की ओर से/ Appellant by : Shri S.Subramaniam, C.A IJथG की ओर से /Respondent by : Ms. R. Anitha, Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 02.07.2025 घोषणा की ता रीख /Date of Pronouncement : 31.07.2025 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 Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 03.04.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. Printed from counselvise.com ITA No.1063/Chny/2025 V.M. Rajasekharan :- 2 -: 143(3) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 31.12.2019. 2. The assessee is an employee of ITC Ltd. and filed his return of income declaring a total income of Rs. 2,94,69,380/-. The A.O, in the assessment order passed u/s. 143(3) of the Act has made addition of Rs.72,04,433/- in respect of sale of bonus share under the head \"Capital Gains.\" Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal without considering the submissions made by the assessee. 3. At the outset, the Ld. Authorized Representative (A.R) of the assessee submitted that the Ld. CIT(A) has dismissed the appeal without considering the submission filed. Ld AR has submitted that assessee has filled written submission on 01.04.2025 and also sought VC, but Ld. CIT(A) passed order without considering the request and the written submission. Therefore, it was prayed that one more opportunity be granted to the assessee to substantiate his case before the Ld. CIT(A). 4. On the other hand, the Ld. Departmental Representative (D.R) relied on the orders of the lower authorities. Printed from counselvise.com ITA No.1063/Chny/2025 V.M. Rajasekharan :- 3 -: 5. We have heard the rival submissions and perused the material available on record. Upon perusal of the order of the Ld. CIT(A), we find that the appeal was dismissed without considering the submissions of the assessee. In view of the principles of natural justice, we are of the considered opinion that the assessee should be provided with another opportunity to present his case before the Ld. CIT(A). Accordingly, we remit the matter back to the file of the Ld. CIT(A) to decided the matter afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for 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 31st day of July, 2025 at Chennai. Sd/- Sd/- (यस यस िव\u001bने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st July, 2025. EDN/- Printed from counselvise.com ITA No.1063/Chny/2025 V.M. Rajasekharan :- 4 -: आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "