DEVAPICHAI EZRA ARUNKUMAR,TIRUNELVELI vs. ITO, WARD-1,, TIRUNELVELI

The assessee is an individual and did not file the return of income. The A.O received information that the assessee had deposited cash and has also reported substantial in the GST return. Since the assessee did not file the return of income, the A.O issued a notice u/s. 148A(b) of the Act. The A.O subsequently passed an order u/s.148A(d) of the Act and issued a notice u/s. 148 of the Act reopening the assessment. Since the assessee did not file any return nor responded to the notices of the A.O, the A.O estimated the income of the assessee at 8% of the turnover declared in the GST return. Aggrieved, the assessee filed further appeal before the CIT(A). The assessee did not respond to the various notices issued by the CIT(A), the CIT(A) therefore sustained the addition made by the A.O ex-parte.

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee is not aware of the income tax proceedings and completely relied on his counsel for handling the tax matters. The Ld. AR further submitted that the counsel of the assessee did not provide proper professional support and therefore the assessee was not aware that the A.O has passed the assessment order. The ld. AR accordingly prayed for one more opportunity. Considering the facts and circumstances peculiar to assessee's case, we are inclined to give one more opportunity to the assessee in the interest of natural justice to represent the case properly by producing the required details. Accordingly, we remit the appeal back to the A.O with a direction to call for necessary details and decide the issue in accordance with law. The assessee is required to submit the necessary details as may be called for and cooperate with assessment proceedings. It is ordered accordingly.

Further, we also levy a cost of Rs.5,000/- (Five thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 14th day of May, 2026 at Chennai.