VELLAISAMY DURAIPANDY,MADURAI,MADURAI V. INCOME TAX OFFICER,NON.CORPORATE WARD 2(1), MADURAI, INCOME TAX OFFICE, MADURAI

ITA 2892/CHNY/2024

AI Insights

The case involves an appeal by the assessee, Vellaisamy Duraipandy, against the orders of the Income Tax Officer (ITO) and the CIT(A), which were passed ex-parte. The ITO had made an addition of Rs.1,14,90,000 to the assessee's income under section 69A of the Income Tax Act, 1961, and initiated a penalty under section 271AAC(1). The CIT(A) dismissed the appeal due to non-compliance with notices, which the assessee claimed were not received. The Tribunal, considering the principles of natural justice and the fact that the quantum appeal had been set aside to the CIT(A), decided to provide another opportunity for the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107184 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PUSHPA HEMACHAND
• Assessee Lawyers: T.VASUDEVAN
• Keywords: Set aside; Principle of natural justice
• Section: 147; 144; 69A

Judgement Text

"आयकर अपीलीय अिधकरण, ‘बी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI \u0019ी मनु क ुमा र िग\u001eर, \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.2892/Chny/2024 िनधा 9रण वष9 /Assessment Year: 2018-19 Vellaisamy Duraipandy, No.70, Officer Town, Meenambalpuram, Madurai, Tamil Nadu-625002. Vs. Income Tax Officer, Non-Corporate Ward-2(1), Madurai [PAN: AEBPD0632E] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथF की ओर से/ Appellant by : Shri T.Vasudevan, Advocate. HIथF की ओर से /Respondent by : Ms.Pushpa Hemachand, JCIT सुनवाई की तारीख/Date of Hearing : 22.01.2025 घोषणा की तारीख /Date of Pronouncement : 31.01.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 17.09.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 271AAC(1) of the Income- tax Act,1961 (hereinafter “the Act”) on 06.03.2023. ITA No. 2892/Chny/2024 :- 2 -: 2. The A.O in the ex-parte order passed u/s. 147 r.w.s 144 r.w.s 144B of the Act has made addition of credit in bank account of Rs.1,14,90,000/- u/s. 69A of the Act and initiated penalty u/s. 271AAC(1) of the Act . The A.O also levied penalty of Rs. 88,87,600/- in the ex-parte order passed as there was no compliance. Aggrieved, the assessee has filed an appeal before Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal ex-parte as the assessee has not complied with the notices. 3. The Ld. Authorized Representative (A.R) of the assessee has argued that the assessee could not comply with the notices as the notices were not received by the assessee. The Ld. AR has submitted that since the penalty order and the order of Ld. CIT(A) were passed ex-pare, he requested that one more opportunity be granted to the assessee to substantiate his case before Ld. CIT(A). The Ld. AR further submitted that the quantum appeal which has bearing on the present appeal has also been set aside to Ld. CIT(A). 4. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. ITA No. 2892/Chny/2024 :- 3 -: 5. We have heard the rival submissions, and perused the materials available on record. The penalty order as well as Ld CIT(A) order have been passed ex –parte and quantum appeal stated to be restored back to the file of Ld CIT(A). 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 Ld. CIT(A). Accordingly, we set aside the orders passed by the lower authorities and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal 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 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 31st January, 2025. Sd/- Sd/- (मनु क ुमार िग\u001eर) (Manu Kumar Giri) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 31st January, 2025. EDN/- ITA No. 2892/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 - Madurai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "