VLSPL 129 SAINAMPATTATAI PACCS LTD.,VELLORE V. ITO, WARD-1, VELLORE

ITA 1851/CHNY/2025

AI Insights

The case involves VLSPL-129 Sainampattatai Primary Agricultural Coop Credit Society Ltd., a cooperative society, which did not file its income tax return for the assessment year 2019-20. The AO reopened the case under section 148 of the Income Tax Act due to substantial cash withdrawals reported. An addition of Rs. 4,24,97,896 was made as unexplained money under section 69A. The CIT(A) dismissed the appeal ex-parte due to non-compliance with hearing notices. The assessee appealed to the Income Tax Appellate Tribunal, which, considering the principles of natural justice, decided to give the assessee another opportunity to present its case before the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772743 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN
• Assessee Lawyers: J. SARAVANAN
• Keywords: Set aside; Principle of natural justice
• Section: 148

Judgement Text

"आयकर अपीलीय अिधकरण, ’डी’ \u0001यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, ाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0016ा, लेखा सद क े सम\u0019 BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1851/Chny/2025 िनधा\u000eरण वष\u000e/Assessment Year: 2019-20 VLSPL-129 Sainampattatai Primary Agricultural Coop Credit Society Ltd., Sainampattatai Village, Kuppireddy Reddythangal Post, Katpadi Taluk, Sholinghur Block, Vellore-632 516. v. The ITO, Ward-1, Vellore. [PAN: AABAV 0740 Q] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.J. Saravanan, Advocate \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Mr. ARV Sreenivasan, Addl.CIT सुनवाईक\u001aतारीख/Date of Hearing : 26.08.2025 घोषणाक\u001aतारीख /Date of Pronouncement : 26.08.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 13.01.2025 for Assessment Year 2019-20. 2. Delay of ‘88’ days condoned as stated in the petition supported by the affidavit. Appeal is admitted for adjudication. Printed from counselvise.com ITA No.1851/Chny/2025 (AY 2019-20) VLSPL-129 Sainampattatai Primary – Agricultural Coop Credit Society Ltd. :: 2 :: 3. The brief facts of the case are that the assessee is a cooperative society and had not filed its return of income for the year under consideration. Based on the information that the assessee had cash withdrawals amounting to Rs.2,75,19,000/- and it was a non-filer, the case was reopened. u/s 148 on 30.03.2023. The AO proceeded ex-parte as no compliance was made before the AO and made an addition of Rs.4,24,97,896/- on account of unexplained money u/s 69A of the Act. The ld. CIT(A) dismissed the appeal ex-parte as there was no response to the notices issued for hearing and filing submission. 4. Aggrieved, assessee is in appeal before us. 5. Before us, the ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and submission. The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal. 6. Though we some extent concur with the submissions of Ld.DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence before the AO. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the AO for hearing on merits subject to cost of Rs.10,000/- (Rupees Ten Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to Printed from counselvise.com ITA No.1851/Chny/2025 (AY 2019-20) VLSPL-129 Sainampattatai Primary – Agricultural Coop Credit Society Ltd. :: 3 :: ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. 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 the assessment proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities. 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in open court on the 26th day of August, 2025, in Chennai. Sd/- (अिमताभ शु\u0016ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (मनु क ुमार िग र) (MANU KUMAR GIRI) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे ई/Chennai, दनांक/Dated: 26th August, 2025. TLN, Sr.PS 1. अपीलाथ /Appellant 2. \u000e\u000fथ /Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड फाईल/GF Printed from counselvise.com "