G. SELVAPERUMAL,THENI vs. ITO, WARD 1, THENI, THENI

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ITA 3539/CHNY/2026Status: DisposedITAT Chennai08 September 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) and restored the matter to the CIT(A) for adjudication on merits. The CIT(A) was directed to provide an opportunity of hearing and consider the assessee's explanations and evidence.

What were the facts?

The assessee declared income of Rs. 2,95,720/-. Reassessment proceedings were initiated for an agreement for sale of property for Rs. 14,20,590/-, which was treated as short-term capital gain. The assessee faced technical difficulties in participating in the assessment proceedings.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) should be condoned, and if so, whether the matter should be adjudicated on merits.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 139(1),Section 143(2),Section 142(1),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI INTURI RAMA RAO & SHRI MANU KUMAR GIRI

Hearing: 18.08.2026

आयकरअपील�यअ�धकरण ’बी’ �यायपीठ,चे�नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI �ी इंतूरी रामा राव लेखासद� एवं �ी मनु कुमार िग�र, �ाियक सद� BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI MANU KUMAR GIRI, JUDICIAL MEMBER

आयकर अपील सं./ITA No. 3539/Chny/2026 �नधा�रण वष�/Assessment Year: 2019-20 G. Selvaperumal, v. The Income Tax Officer, 60A/5-3, Kurangumayan Street, Ward-1, Theni Uthamapalayam Taluk, Cumbum, Theni, Tamil Nadu-625516 [PAN: DXJPS 5937 M] (Appellant) (Respondent)

अपीलाथ� क� ओर से/ Appellant by : Ms. S. Sangeetha Priya, Adv. !यथ� क� ओर से /Respondent by : Mr. Banoth Akhil Ram Naik, JCIT सुनवाई क� तार�ख/Date of Hearing : 18.08.2026 घोषणा क� तार�ख /Date of : 08.09.2026 Pronouncement आदेश / O R D E R PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the assessee is directed against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as "the Ld. CIT(A)"], dated 27.01.2026 confirming the assessment order passed u/s. 147 r.w.s 144 of the Income Tax Act, 1961 ("the Act"), for the Assessment Year ("AY") 2019-20.

ITA No. 3539/Chny/2026 (AY 2019-20 G. Selvaperumal Vs ITO W-1 Theni :: 2 :: 2. In the instant appeals, the registry has noted the delay of 83 days in filing the captioned appeal. We have gone through the condonation petition along with affidavit filed, we find that the reasons given by the assessee are sufficient cause for delay in filing the captioned appeal. Hence, we condone the delay and admit the appeal for adjudication.

3.

Brief facts of the case are that the assessee is an individual who filed his return of income under section 139(1) of the Income- tax Act, 1961 (“the Act”), declaring total income of Rs.2,95,720/-. Subsequently, proceedings under section 147 of the Act were initiated to examine the issue of an agreement for sale of immovable property for a consideration of Rs.14,20,590/-, in respect of which no capital gain was disclosed in the return of income. During the reassessment proceedings, notices under sections 143(2) and 142(1), along with show-cause notices, were issued through the ITBA portal. The assessee submitted that due to technical and other difficulties, he could not properly participate in the assessment proceedings. Consequently, the Assessing Officer completed the assessment under section 147 read with sections 144 and 144B of the Act on 15.01.2025, treating the entire sale consideration of Rs.14,20,590/- as short-term capital gain, with cost of acquisition taken at Nil, and added the same to the total income of the assessee. 4. Aggrieved, the assessee preferred an appeal before the ld. CIT(A) with a delay of 328 days. The ld. CIT(A), not being satisfied with the reasons stated for the delay, dismissed the appeal as time-barred without adjudicating the grounds raised by the assessee on merits. Hence, the assessee is in appeal before us.

ITA No. 3539/Chny/2026 (AY 2019-20 G. Selvaperumal Vs ITO W-1 Theni :: 3 :: 5. Before us, the ld. AR submitted that the assessee could not effectively participate in the assessment proceedings due to technical and other difficulties and that he came to know about the assessment proceedings only when he visited the Verification Unit officials in connection with the recovery proceedings. It was submitted that immediately thereafter the assessee took steps to pursue the appellate remedy. The delay was neither intentional nor deliberate. The ld. AR therefore pleaded that the delay be condoned and the matter be restored to the file of the ld. CIT(A) for adjudication on merits. 6. The ld. DR supported the order of the ld. CIT(A). 7. We have heard the rival submissions and perused the material available on record. The explanation furnished by the assessee is that he became aware of the assessment proceedings only when he approached the Verification Unit officials in connection with recovery proceedings. The assessee has further stated that technical and other difficulties prevented him from properly participating in the reassessment proceedings. 8. We find that the delay involved is 328 days. At the same time, the ld. CIT(A) has dismissed the appeal as time-barred without adjudicating the substantive grounds challenging the addition of Rs.14,20,590/-. Considering the explanation furnished by the assessee and the fact that the appeal raises a substantive grievance requiring adjudication, we are of the view that the matter deserves to be considered in the interest of substantial justice. Accordingly, we condone the delay of 328 days in filing the appeal before the ld.CIT(A). The impugned order of the ld.CIT(A) is set aside and the matter is restored to his file for adjudication of the appeal on merits.

ITA No. 3539/Chny/2026 (AY 2019-20 G. Selvaperumal Vs ITO W-1 Theni :: 4 :: The ld. CIT(A) shall provide the assessee a reasonable and effective opportunity of hearing and consider the explanations and documentary evidence furnished by the assessee. Thereafter, the ld. CIT(A) shall adjudicate all the grounds raised by the assessee on merits in accordance with law and pass a speaking and reasoned order. The assessee is directed to cooperate with the appellate proceedings and furnish all relevant details and evidence without seeking unnecessary adjournments. We make it clear that we have not expressed any opinion on the merits of the addition of Rs.14,20,590/- treated as short-term capital gain. All issues are left open for adjudication by the ld. CIT(A) in accordance with law. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 08th day of September, 2026 in Chennai.

Sd/- Sd/- (इंतूरी रामा राव) (मनु कुमार िग�र) (INTURI RAMA RAO) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER �या�यक सद*य/JUDICIAL MEMBER चे�नई/Chennai, Digitally signed +दनांक/Dated: 08th September 2026. SANDEE by SANDEEP SNDP, Sr. PS KUMAR P KUMAR आदेश क� �त,ल-प अ.े-षत/Copy to: Date: 2026.09.11 1. अपीलाथ�/Appellant 12:53:26 +05'30' 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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