SETHURAMAN,TINDIVANAM vs. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE (NFAC)

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ITA 3544/CHNY/2026Status: DisposedITAT Chennai08 September 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the lower appellate authority passed an ex-parte order without affording the assessee a proper opportunity to be heard, violating principles of natural justice.

What were the facts?

The assessee made significant cash deposits in bank accounts during AY 2019-20. The Assessing Officer treated these deposits as unexplained income as the assessee remained silent to notices.

What were the issues?

Whether the appeal before the CIT(A) was rightly dismissed on technical grounds without adjudicating the merits, and if the assessee was denied a fair hearing.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 249(3)

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. 3544/Chny/2026 �नधा�रण वष�/Assessment Year: 2019-20 Sethuraman, v. The Assessment Unit, 42, Chekkadi Street, Alagraman National Faceless Village & Post, Tindivanam, Assessment Centre, Viluppuram-604302 Viluppuram-605602 [PAN: DCSPS 6955 R] (Appellant) (Respondent)

अपीलाथ� क� ओर से/ Appellant by : Mr. P. Varun Kumar, C.A !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 19.01.2026 confirming the assessment order passed u/s. 147 of the Income Tax Act, 1961 ("the Act"), for the Assessment Year ("AY") 2020-21.

ITA No. 3544/Chny/2026 (AY 2019-20) Sethuraman Vs Assessment Unit :: 2 :: 3. Brief facts of the case are that as per information the assessee made cash deposits of Rs. 02,02,00,624/-/- & Rs. 02,08,61,592/-/- in the banks of Central Bank of India during the period of A.Y 2019- 20. However, the assessee was asked to explain the source and nature of impugned cash deposit but the assessee remained silent. In the absence of response to the notice issued u/S 144 of the Act, the AO assessed the income of Rs. 02,08,61,592/- as unexplained money of the Act.

4.

Being aggrieved, the assessee preferred an appeal before the learned CIT(A). However, the learned CIT(A) dismissed the appeal on account of time barred of 763 days by holding that the appeal does not merit condonation and the appeal is treated to be filed late with reference to the provision of Section 249(3) of the Act. Now revenue is in appeal before the Tribunal.

5.

Being further aggrieved, the assessee is now in appeal before this Tribunal. The Ld. Authorised Representative ("Ld. AR") submitted that Ld. CIT(A) erred in dismissing the appeal of the assesse and passed ex-parte order without appreciating the facts and circumstances of the case in their proper perspective and dismissed the appeal without adjudicating the issues on merits. The Ld. AR further submitted that the Ld. CIT(A) had sent the impugned notice on wrong email address which was not operating by the assessee due to assessee could not respond of the notice in time. The Ld. AR, therefore, prayed that one final opportunity be granted to the assessee to produce all relevant documents and evidences before the Ld. CIT(A.) for proper adjudication of the issues involved.

ITA No. 3544/Chny/2026 (AY 2019-20) Sethuraman Vs Assessment Unit :: 3 ::

6.

The ld. Departmental Representative (DR), on the other hand, supported the order of the ld. CIT(A) and prayed for dismissal of the appeal.

7.

We have carefully considered the rival submissions and perused the material available on record. It is evident that both the assessment order as well as the appellate order have been passed ex parte. The record indicates that the assessee was not afforded an effective and meaningful opportunity of being heard during the appellate proceedings. It is a settled principle of law that adherence to the principles of natural justice is a condition precedent to any quasi-judicial adjudication and that every litigant must be afforded a reasonable opportunity of presenting his case before an adverse order is passed. Considering the facts and circumstances of the present case, we are of the considered view that the impugned order of the Ld. CIT(A) suffers from violation of the principles of natural justice. Accordingly, in the interest of justice, the impugned appellate order is set aside and the matter is restored to the file of the Ld. CIT(A) for adjudication de novo in accordance with law, after affording the assessee an adequate and effective opportunity of being heard and after considering such submissions and evidences as may be placed on record in support of his claim.

The assessee is directed to extend full cooperation and diligently participate in the appellate proceedings. It is made clear that in the event of failure on the part of the assessee to avail the opportunities so granted or to comply with the notices issued by the appellate

ITA No. 3544/Chny/2026 (AY 2019-20) Sethuraman Vs Assessment Unit :: 4 :: authority, the Ld. CIT(A) shall be at liberty to dispose of the appeal on merits in accordance with law on the basis of the material available on record. 8. In the result, appeal filed by the assessee is allowed for statistical purpose. 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 Date: 2026.09.11 आदेश क� �त,ल-प अ.े-षत/Copy to: 1. अपीलाथ�/Appellant 12:53:49 +05'30' 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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