M.DEEPA,THENI vs. ITO WARD 1(2) THENI, THENI

आदेश / O R D E R PER MANU KUMAR GIRI, JM:

This appeal by the assessee is directed against the order of the ld.CIT(A), NFAC, Delhi dated 19.05.2025 for AY 2018-19 arising out of the assessment order dated 01.03.2023 framed u/s. 147 read with section 143(3) of the Income Tax Act, 1961 ("the Act"). 2. In the instant appeal, the registry has noted the delay of 174 days in filing the captioned appeal. We have gone through the condonation petition along with affidavit filed, we find that the

ITA No 261/Chny/2026 (AY 2018-19) M. Deepa Vs ITO W1(2) Theni :: 2 :: 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. 2.1 The legal heir namely ‘DEEPA’ is representing the case of the assessee. The brief facts of the case are that the assessee expired on 03.05.2023, who had not originally filed the return of income for the assessment year under consideration. Based on information available with the Department, it was noticed that the assessee had made cash withdrawals aggregating to Rs.1,10,14,000/- from his bank account maintained with Lakshmi Vilas Bank during the financial year 2017-18. Proceedings u/s. 148A of the Act were initiated and, after passing an order u/s.148A(d) dated 30.03.2022 with the approval of the specified authority, notice u/s. 148 was issued on the same date.In response to the notice issued u/s.148 of the Income Tax Act, the assessee filed a return of income on 02.05.2022 declaring total income of Rs.6,58,310/- and agricultural income of Rs.3,15,850/-. Subsequently, notice u/s. 143(2) was issued. According to the Assessing Officer, despite issuance of various statutory notices calling upon the assessee to explain the transactions appearing in the bank account and to furnish supporting documentary evidence, the assessee did not comply with the notices.The Assessing Officer observed that the assessee had made cash withdrawals of Rs.1,10,14,000/- and cash deposits of Rs.5,000/- in the bank account maintained with Lakshmi Vilas Bank during the relevant financial year. Holding that the assessee had failed to explain the nature and source of the amounts reflected in the bank account, the Assessing Officer treated a sum of Rs.1,10,14,000/- as unexplained money u/s. 69A read with section 115BBE of the Act and completed the assessment accordingly.

ITA No 261/Chny/2026 (AY 2018-19) M. Deepa Vs ITO W1(2) Theni :: 3 :: 3. Aggrieved by the assessment order, the assessee preferred an appeal before the ld. CIT(A). The ld. CIT(A), however, dismissed the appeal ex parte on the ground that despite opportunities afforded, the assessee neither appeared nor filed written submissions in support of the appeal. The assessee is now in appeal before the Tribunal. 4. We have heard the ld.Authorised Representative for the assessee/legal heir and the ld. Departmental Representative and have carefully perused the material available on record.It is an admitted position that the assessment has been completed ex parte for non-compliance by the assessee. It is equally evident that the first appellate authority has also dismissed the appeal without adjudicating the issues on merits as the assessee failed to prosecute the appeal. Consequently, neither the assessment order nor the appellate order contains any examination of the assessee's explanation or supporting evidence regarding the impugned bank transactions.We further notice from the assessment order that the information available with the Department itself indicates that the transaction primarily relates to cash withdrawals aggregating to Rs.1,10,14,000/- from the bank account, whereas the assessment has proceeded by treating the very same amount as unexplained money u/s. 69A of the Act. The assessment order also refers to cash deposits of only Rs.5,000/-, while simultaneously making an addition of Rs.1,10,14,000/-. The factual aspects relating to the nature of the bank entries, the flow of funds, the business activities carried on by the assessee, the books of account, if any, and the applicability of section 69A have not been examined in the manner required under law. In the absence of proper verification and in view of the lack of effective participation by the assessee during the

ITA No 261/Chny/2026 (AY 2018-19) M. Deepa Vs ITO W1(2) Theni :: 4 :: assessment proceedings, the matter, in our considered opinion, requires fresh examination.Having regard to the totality of the facts and circumstances of the case and in the interest of substantial justice, we deem it appropriate to set aside the orders of the authorities below and restore the matter to the file of the Assessing Officer for de novo assessment. The Assessing Officer shall afford adequate and reasonable opportunity of being heard to the assessee/legal heir and shall examine all the explanations and documentary evidence that may be furnished by the legal heir ‘DEEPA’. Thereafter, the Assessing Officer shall pass a fresh speaking order in accordance with law without being influenced by any observations contained in the earlier assessment order. 5. The assessee/ Legal Heir is also directed to cooperate fully with the assessment proceedings and to furnish all requisite details and documentary evidence as may be called for by the Assessing Officer. It is made clear that if the assessee/legal heir fails to avail the opportunities granted or does not cooperate in the proceedings, the Assessing Officer shall be at liberty to complete the assessment on the basis of the material available on record in accordance with law. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on the 20th day of July 2026 in Chennai.

Sd/- Sd/- (प�ावती एस) (मनु कुमार िग�र) (PADMAVATHY S) (MANU KUMAR GIRI) लेखा सद)या/ACCOUNTANT MEMBER �या�यक सद)य/JUDICIAL MEMBER

ITA No 261/Chny/2026 (AY 2018-19) M. Deepa Vs ITO W1(2) Theni :: 5 :: चे�नई/Chennai, *दनांक/Dated: 20th July, 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 SANDE Digitally signed by SANDEEP EP KUMAR Date: KUMAR 2026.07.22 13:51:50 +05'30'