RATHINAGIRI GOUNDAR KUMARAVEL,DINDIGUL vs. INCOME TAX OFFICER-1, DINDIGUL

PER MANU KUMAR GIRI, JM:

The captioned appeal filed by the Assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [hereinafter referred to as “the Ld.CIT(A)”], dated 18.06.2024 confirming the assessment framed u/s. 250 of the Income Tax Act, 1961 for Assessment Year 2018- 19.

ITA 1771/Chny/2026 (AY 2012-13) Rathinagiri Goundar Kumaravel VS ITO,W-1 :: - 2 - :: 2. In the instant appeals, the registry has noted the delay of 588 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 appeals for adjudication. 3. Brief facts of the case- The appellant had filed his return of income for A.Y. 2012-13 on 31.03.2013 declaring total income at Rs 4,07,550/-. In this case, an enquiry report was received from DDIT(Inv.) Unit-1 Coimbatore that the appellant along with one other co-owner purchased an immovable property for a consideration of Rs. 1,46.57.000/-. Case of appellant was reopened u/s 147 of I.T. Act and notice was issued u/s 148 of I.T. Act on 26.03.2019 which was duly served upon the assesssee. However, in response to said notice, appellant did not file return of income. Subsequently notices u/s 142(1) along with questionnaire were issued to the appellant calling for certain details. AO asked the appellant to explain the source of investment made in the purchase of immovable property. However, in response, appellant neither filed reply/submission nor made any request for adjournment. AO proceeded to complete the assessment on best judgment basis u/s 144 on the basis of material available on record. As per information, appellant along with other co-owner i.e Shri A Ramasamy, had purchased the immovable property being land of 10 acre and 25 cents for a consideration of Rs.1,45,57,500/-. Appellant's share in the property was Rs.73,28,750/- (50% of 1,43,57,500). Further on going through

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ITA 1771/Chny/2026 (AY 2012-13) Rathinagiri Goundar Kumaravel VS ITO,W-1 :: - 3 - :: the ITR filed for A.Y. 2012-13, AO found that appellant has shown gross income of Rs. 4,07,545/- excluding the agricultural income of Rs. 8,78,280/- which was not in commensurate with the fund invested in the property. In absence of reply /explanation form the appellant, source of fund invested in immovable property remained unexplained. And added to total income of the appellant u/s 69 of the I.T. Act. Further in his ITR, appellant had shown agricultural income of Rs. 8,78,280/-. During the course of assessment proceeding, appellant was asked to submit documentary evidence in support of his claim of agricultural income shown in ITR. However, appellant could not furnish any details in respect of agricultural income. Accordingly, appellant's claim of agricultural income was denied and amount of Rs. 8,78,280/- and treated as income earned from undisclosed sources The captioned appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”], dated 18.06.2024, arising out of the assessment framed by the Assessing Officer u/s. 144 read with section 147 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] for Assessment Year (AY) 2012-13. 4. The assessee carried the matter in appeal before the Ld.CIT(A). The appeal was dismissed by the Ld.CIT(A), against which the assessee is in appeal before us.

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ITA 1771/Chny/2026 (AY 2012-13) Rathinagiri Goundar Kumaravel VS ITO,W-1 :: - 4 - :: 5. We have heard the rival submissions and perused the material on record. The assessment was completed ex-parte u/s. 144 of the Act due to the assessee's non-compliance, resulting in additions of Rs.73,28,750/- under section 69 towards unexplained investment and Rs.8,78,280/- towards alleged unexplained agricultural income. The issues require factual verification regarding the assessee's share and source of investment in the immovable property and the genuineness of the agricultural income claimed. In the interest of substantial justice, we therefore deem it appropriate to restore the matter to the file of the Assessing Officer for fresh adjudication. Accordingly, the assessment is set aside to the file of the Assessing Officer with a direction to examine the aforesaid issues afresh after affording reasonable opportunity of hearing to the assessee. The assessee shall furnish all relevant evidence in support of his claims, and the Assessing Officer shall pass a fresh order in accordance with law. Considering the assessee's failure to effectively participate in the proceedings before the lower authorities, the restoration is subject to a cost of Rs.5,000/- (Rupees Five Thousand only). The assessee shall deposit the said amount with the Legal Services Authority/Legal Aid Services of the Hon'ble Madras High Court and furnish proof of payment to the Assessing Officer. The Assessing Officer shall adjudicate the issues afresh uninfluenced by the observations herein and in accordance with the principles of natural justice. The assessee shall extend full cooperation and avoid seeking unnecessary adjournments.

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ITA 1771/Chny/2026 (AY 2012-13) Rathinagiri Goundar Kumaravel VS ITO,W-1 :: - 5 - :: 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 03rd day of September, 2026 in Chennai.

Sd/- Sd/- (मनु कुमार िग�र) (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) (MANU KUMAR GIRI) लेखा सद*य/ACCOUNTANT MEMBER �या�यक सद*य/JUDICIAL MEMBER चे�नई/Chennai, +दनांक/Dated: 03rd September, 2026 SNDP, Sr. PS आदेश क ��त,ल-प अ.े-षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF Digitally signed SANDE by SANDEEP KUMAR EP Date: 2026.09.08 KUMAR 09:49:02 +05'30'

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