VEERAN DURAISAMY,KARUR vs. ITO, WARD-1,, KARUR

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ITA 1518/CHNY/2026Status: DisposedITAT Chennai08 June 2026AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the CIT(A) after noting that the appeal was filed within 30 days of the order's communication. The Tribunal set aside the CIT(A)'s order and remitted the matter back to the AO for de novo assessment.

What were the facts?

The assessee, an individual, did not file his return of income for AY 2017-18. The AO reopened the case under Section 147 and made an addition of Rs. 1,00,38,275/-. The assessee's appeal before the CIT(A) was dismissed in limine due to a delay in filing.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal in limine due to a delay, and whether the assessment order passed ex-parte should be set aside.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI ABY T VARKEY & SHRI S. R. RAGHUNATHA

Hearing: 12.05.2026Pronounced: 08.06.2026

आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI श्री एबी टी वर्की, न्याययर्क सदस्य एवं श्री एस. आर. रघुनाथा, लेखा सदस्य के समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1518/Chny/2026 ननिाारण वर्ा / Assessment Year: 2017-18 Veeran Duraisamy(Late) The Income Tax Officer, L/H D. Vasanthi, vs. Ward-1, 7103 N. No 797, Sellarappalayam, Karur. Pallapalayam B.O, Karur – 639 002. [PAN: BEHPD-6928-N] (प्रत्यथी/Respondent) (अपीलाथी/Appellant)

अपीलाथी की ओर से/Appellant by : Ms. S. Mathangi, Advocate प्रत्यथी की ओर से/Respondent by : Ms. Gouthami Manivasagam, Addl.CIT सुनवाई की तारीख/Date of Hearing : 12.05.2026 घोर्णा की तारीख/Date of Pronouncement : 08.06.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM :

The present appeal is filed by the assessee against the order dated 18.11.2025 passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “ld.CIT(A)”), dismissing the appeal filed by the assessee against the assessment order dated 28.03.2025 passed u/s.147 r.w.s 144 of the Income

:-2-: ITA. No:1518/Chny/2026. Tax Act, 1961 (hereinafter referred to as the “Act”), pertaining to Assessment Year (A.Y.) 2017-18. 2. At the threshold, we observe that there is a delay of 46 days in the filing of the present appeal by the assessee. The assessee has furnished an affidavit explaining that the legal heir of the assessee could not file the appeal in time due to severe health issues during the relevant period. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, we are satisfied that the assessee has demonstrated sufficient and reasonable cause for not presenting the appeal within the statutory period prescribed under law. Accordingly, in the interest of justice, the delay in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits.

3.

Brief facts of the case are that the assessee an individual and had not filed his return of income for the A.Y.2017-18. As per information available with the department, the AO found that the assessee has made cash deposits to the tune of Rs.1,45,57,000/- and cash withdrawals amounting to Rs.14,55,05,000/- the 30,54,620/- in his current account. The case was reopened u/s.147 of the Act, accordingly, a notice u/s.148 of the Act was issued to the assessee. In response, the assessee failed to file the return of income. Further, the AO obtained death certificate of the assessee along with document of his legal heir. Later, the AO issued statutory notices to the legal heir of the assessee. However, the assessee chose to be silent and failed to respond to any of the notices. On perusal of the bank statements, the AO completed the assessment u/s.147 r.w.s 144 of the Act dated 28.03.2025 by making an addition of Rs.1,00,38,275/- (6% of total credits of Rs.16,73,04,579/-) as income of the assessee.

4.

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A) on 09.05.2025 with a delay in filing an appeal.

:-3-: ITA. No:1518/Chny/2026. 5. At the outset, we observed that as noted by the ld.CIT(A), the assessee has failed to mention the number of days of delay in filing the appeal in Form No 35 filed in column No.14, though the appeal was filed with a delay of 13 days. Further, the ld.CIT(A) provided an opportunity to the assessee to rectify the error in filing the appeal. However, the assessee chose to be silent and did not respond to the same. Hence, the ld.CIT(A), NFAC dismissed the appeal filed by the assessee in limine as the appeal filed is invalid by passing an order dated 18.11.2025. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us.

6.

The ld.AR for the assessee submitted that the assessment order was passed on 28.03.2025 u/s.147 r.w.s 144 of the Act for the A.Y.2017-18 and the same was served to the assessee’s legal heir on 21.04.2025 as evident from the acknowledgement slip enclosed in Page No.9 of the paper book filed. Accordingly, the appeal filed before the ld.CIT(A) was within the prescribed time and hence, there was no delay in filing the appeal which is filed 09.05.2025. Further, the ld.AR also filed the death certificate of the assessee who was passed away on 01.09.2023 and obtained the legal heir certificate on 19.07.2024. In view of the above, the ld.AR prayed for setting aside the order of ld.CIT(A) and remit the issue back to the AO as the assessment order was passed without participation of the assessee. The ld.AR assured the bench that they will participate in the proceedings and cooperate to complete the assessment.

7.

Per contra, the ld.DR submitted that the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).

8.

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the information available with the

:-4-: ITA. No:1518/Chny/2026. department and on appeal by the assessee, the same has been dismissed by the ld.CIT(A), NFAC in limine due to delay in filing the appeal. We note that the assessee had indeed filed the appeal within 30 days of the communication of the order as per the acknowledgment slip provided by the assessee.

9.

In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO, as the order was passed exparte and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so.

10.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the court on 08th June, 2026 at Chennai.

Sd/- Sd/- (एबी टी वर्की ) (एस. आर. रघुनाथा) (ABY T VARKEY) (S. R. RAGHUNATHA) न्याययर्क सदस्य/Judicial Member लेखासदस्य/Accountant Member चेन्नई/Chennai, दिन ांक/Dated, the 08th June 2026 Devadas आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अपीलाथी/Appellant 2. प्रत्यथी/Respondent 3.आयकर आयुक्त/CIT– Chennai/Coimbatore/Madurai/Salem 4. ववभागीय प्रनतननधि/DR 5. गार्ा फाईल/GF DEVADAS Digitally signed by DEVADAS GOPALANACHARY GOPALANACHARY Date: 2026.06.10 15:12:30 +05'30'

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