SHREEPATHY SHANKARAN PANDALAI,KALYAN vs. INCOME TAX OFFICER 3(2), KALYAN

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “G” MUMBAI

BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER)

ITA No. 9395/MUM/2025 Assessment Year: 2016-17

Shreepathy Shankaran Income Tax Officer 3(2) Pandalai, 9, Matoshree Shri Rani Mansion, 2nd Floor, Above Vs. Gurudatt CHS., Opp Mohan Canara Bank, Murbad Road, Heights, NR Nebulapark, Kalyan - 421301 Beturkarpa, Kalyan - 421301 Maharashtra. Maharashtra. PAN NO. AGIPP 6691 C Appellant Respondent

: Shri Mahendra Lohia - CA Assessee by : Shri Tamil Selvam S., (Sr. AR) Revenue by

: 13/05/2026 Date of Hearing Date of pronouncement : 19/05/2026 ORDER PER OM PRAKASH KANT, AM

This appeal by the Assessee is directed against order dated 08.10.2025, passed by the learned Commissioner of Income-Tax (Appeals) – National Faceless Appeal Centre, Delhi (in short, “the Ld. CIT(A)”), for Assessment Year (in short ‘A.Y.’) 2016–17, raising following grounds:

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“1. On the facts and circumstances of the case, the impugned Order passed by and circumstances of the case, the impugned Order passed by and circumstances of the case, the impugned Order passed by the learned CIT (A) u/s 250 confirming the additions made by the Ld. A.O. vide the learned CIT (A) u/s 250 confirming the additions made by the Ld. A.O. vide the learned CIT (A) u/s 250 confirming the additions made by the Ld. A.O. vide assessment Order u/s 144 is bad in law and in violation of the principles of assessment Order u/s 144 is bad in law and in violation of the principles of assessment Order u/s 144 is bad in law and in violation of the principles of natural justice and liable to be set asi natural justice and liable to be set aside for adjudication on merit. de for adjudication on merit. 2. On facts and circumstances of the case, the Ld. CIT(A) has erred in upholding On facts and circumstances of the case, the Ld. CIT(A) has erred in upholding On facts and circumstances of the case, the Ld. CIT(A) has erred in upholding the addition of Rs 52,20,820 as unexplained investment u/s 69 of Income Tax the addition of Rs 52,20,820 as unexplained investment u/s 69 of Income Tax the addition of Rs 52,20,820 as unexplained investment u/s 69 of Income Tax Act, 1961 as investment is made through Rs.43,99,248 housing loan availed from Act, 1961 as investment is made through Rs.43,99,248 housing loan ava Act, 1961 as investment is made through Rs.43,99,248 housing loan ava LIC Housing Finance and balance Rs.8,21,572 through proper banking channel LIC Housing Finance and balance Rs.8,21,572 through proper banking channel LIC Housing Finance and balance Rs.8,21,572 through proper banking channel out of financial assistance from father and brother. out of financial assistance from father and brother. 3. On the facts and in the circumstances of the case, the Learned CIT(A) has erred On the facts and in the circumstances of the case, the Learned CIT(A) has erred On the facts and in the circumstances of the case, the Learned CIT(A) has erred in upholding the addition of salary in upholding the addition of salary income of ₹14,21,713 without appreciating 14,21,713 without appreciating that the employer, LIC of India, Kalyan Branch (Code 934), had already deducted that the employer, LIC of India, Kalyan Branch (Code 934), had already deducted that the employer, LIC of India, Kalyan Branch (Code 934), had already deducted and deposited tax of and deposited tax of ₹1,47,497 on the said salary into the Government Treasury 1,47,497 on the said salary into the Government Treasury on behalf of the appellant. on behalf of the appellant. 4. The appellant craves The appellant craves the leave to add, alter, delete or modify or modify any ground of appeal before or during the hearing of appeal. appeal before or during the hearing of appeal. 2. At the outset, we note that the learned CIT(A) dismissed the At the outset, we note that the learned CIT(A) dismissed the At the outset, we note that the learned CIT(A) dismissed the appeal primarily on account of non appeal primarily on account of non-compliance by the assessee with compliance by the assessee with the notices issued du the notices issued during the appellate proceedings and failure to ring the appellate proceedings and failure to prosecute the appeal effectively. The learned CIT(A), after recording prosecute the appeal effectively. The learned CIT(A), after recording prosecute the appeal effectively. The learned CIT(A), after recording the chronology of notices issued under Section 250 of the Income- the chronology of notices issued under Section 250 of the Income the chronology of notices issued under Section 250 of the Income tax Act, 1961 (“the Act”) and the repeated non tax Act, 1961 (“the Act”) and the repeated non-appearance on the appearance on the part of the assessee, proceeded to decide the appeal ex parte and e assessee, proceeded to decide the appeal ex parte and e assessee, proceeded to decide the appeal ex parte and confirmed the additions made by the Assessing Officer. The relevant confirmed the additions made by the Assessing Officer. confirmed the additions made by the Assessing Officer. finding of the Ld. CIT(A) of the Ld. CIT(A) is reproduced as under:

“4.1 Form no. 35 of the appeal shows that in this case, assessment order u/s Form no. 35 of the appeal shows that in this case, assessment order u/s Form no. 35 of the appeal shows that in this case, assessment order u/s 147 r.w.s. 144 of the Act was passed on 13.03.2024 and order along with r.w.s. 144 of the Act was passed on 13.03.2024 and order along with r.w.s. 144 of the Act was passed on 13.03.2024 and order along with demand notice was served on 01.08.2024. However, the appellant had filed demand notice was served on 01.08.2024. However, the appellant had filed demand notice was served on 01.08.2024. However, the appellant had filed appeal electronically on 24.08.2024. There is delay in filing of appeal. Appellant appeal electronically on 24.08.2024. There is delay in filing of appeal. Appellant appeal electronically on 24.08.2024. There is delay in filing of appeal. Appellant has also mentioned delay in fili has also mentioned delay in filing of appeal in column 14 of Form no. 35 and the ng of appeal in column 14 of Form no. 35 and the reasons given in column 15 of the said Form are as under: reasons given in column 15 of the said Form are as under: "Respected Sir/Madam "Respected Sir/Madam Under Section 144B order passed on 13.03.2024 but Order copy received Under Section 144B order passed on 13.03.2024 but Order copy received Under Section 144B order passed on 13.03.2024 but Order copy received on 1st August 2024 on 1st August 2024 I request you to condonation of delay a I request you to condonation of delay and accept my appeal" nd accept my appeal"

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I have considered the facts and reasoning given in the Appellant's Application for I have considered the facts and reasoning given in the Appellant's Application for I have considered the facts and reasoning given in the Appellant's Application for condonation of delay. In view of the explanation given by the Appellant, which is condonation of delay. In view of the explanation given by the Appellant, which is condonation of delay. In view of the explanation given by the Appellant, which is found to be justified, the delay in filing the Appeal is condoned, the Appellant found to be justified, the delay in filing the Appeal is condoned, the found to be justified, the delay in filing the Appeal is condoned, the having been prevented by a reasonable cause from filing the appeal in time. having been prevented by a reasonable cause from filing the appeal in time. having been prevented by a reasonable cause from filing the appeal in time. 4.2 Against the order of the A.O. u/s 147 r.w.s. 144 of the Act, the appellant Against the order of the A.O. u/s 147 r.w.s. 144 of the Act, the appellant Against the order of the A.O. u/s 147 r.w.s. 144 of the Act, the appellant has filed this appeal. Notices u/s 250 of the Act were issued to the appellant has filed this appeal. Notices u/s 250 of the Act were issued to the appellant has filed this appeal. Notices u/s 250 of the Act were issued to the appellant electronically in E-proceeding/ITBA facility. It has been noted from the appeal proceeding/ITBA facility. It has been noted from the appeal proceeding/ITBA facility. It has been noted from the appeal record that the appellant was given ample opportunities to present the case by record that the appellant was given ample opportunities to present the case by record that the appellant was given ample opportunities to present the case by way of submission of details along with supporting documents and evidences. way of submission of details along with supporting documents and evidences. way of submission of details along with supporting documents and evidences. Details of opportunities given t Details of opportunities given to the appellant are as follows: Sl. DIN/Notice No. DIN/Notice No. Date of issue of Date fixed for No. notice hearing 1 ITBA/NFAC/F/APL_1/2025 ITBA/NFAC/F/APL_1/2025- 23.06.2025 30.06.2025 26/1077481376(1) 26/1077481376(1) On 30.06.2025, neither any compliance received nor any adjournment letter was filed 2 ITBA/NFAC/F/APL_1/2025 ITBA/NFAC/F/APL_1/2025- 20.08.2025 26.08.2025 26/1079781062(1) 26/1079781062(1) On 26.08.2025, neither any compliance received nor any adjournment letter was filed 3 ITBA/NFAC/F/APL_1/2025 ITBA/NFAC/F/APL_1/2025- 10.09.2025 16.09.2025 26/1080516705(1) 26/1080516705(1) On 16.09.2025, neither any compliance received nor any adjournment letter was filed. 4 ITBA/NFAC/F/APL_1/2025 ITBA/NFAC/F/APL_1/2025- 23.09.2025 29.09.2025 26/1081040170(1) 26/1081040170(1) Final Opportunity On 29.09.2025, neither any compliance received nor any adjournment letter was filed.

4.3 It has been brought out in the preceding part of this order that It has been brought out in the preceding part of this order that It has been brought out in the preceding part of this order that 4 notices u/s 250 of the Act were issued by the First Appellate Authority which have remained 250 of the Act were issued by the First Appellate Authority which have remained 250 of the Act were issued by the First Appellate Authority which have remained

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un-complied. Therefore, apart from the order, other material available to the complied. Therefore, apart from the order, other material available to the complied. Therefore, apart from the order, other material available to the undersigned is the grounds of appeal and the statement of facts which have been grounds of appeal and the statement of facts which have been grounds of appeal and the statement of facts which have been submitted by the appellant at the time of filing of appeal. Appellant has not submitted by the appellant at the time of filing of appeal. Appellant has not submitted by the appellant at the time of filing of appeal. Appellant has not availed any of the opportunities given by the First Appellate Authority and no availed any of the opportunities given by the First Appellate Authority and no availed any of the opportunities given by the First Appellate Authority and no submissions, documents or evidences we submissions, documents or evidences were filed. It is pertinent that in order to re filed. It is pertinent that in order to decide this appeal in a timely manner a number of notices/ communications decide this appeal in a timely manner a number of notices/ communications decide this appeal in a timely manner a number of notices/ communications through ITBA portal were sent to the appellant. However, there evidently has through ITBA portal were sent to the appellant. However, there evidently has through ITBA portal were sent to the appellant. However, there evidently has been no submission from the appellant till date. There is no gainsaying that once been no submission from the appellant till date. There is no g been no submission from the appellant till date. There is no g the appeal is filed by the appellant, it is obligatory on his part to purposefully and the appeal is filed by the appellant, it is obligatory on his part to purposefully and the appeal is filed by the appellant, it is obligatory on his part to purposefully and co-operatively pursue the same in a worthwhile manner, which the appellant has operatively pursue the same in a worthwhile manner, which the appellant has operatively pursue the same in a worthwhile manner, which the appellant has evidently failed to do. It clearly appears that the appellant has not even bothered evidently failed to do. It clearly appears that the appellant has not evidently failed to do. It clearly appears that the appellant has not to pursue this appeal in any productive manner. to pursue this appeal in any productive manner. 4.4 It has been held by the Hon'ble Supreme Court in the case of B.N. It has been held by the Hon'ble Supreme Court in the case of B.N. It has been held by the Hon'ble Supreme Court in the case of B.N. Bhattacharjee and another (118 ITR 461) (at pages 477 & 478) that appeal does Bhattacharjee and another (118 ITR 461) (at pages 477 & 478) that appeal does Bhattacharjee and another (118 ITR 461) (at pages 477 & 478) that appeal does not mean filing of memo of appeal but also pu not mean filing of memo of appeal but also pursing it effectively. In cases where rsing it effectively. In cases where the appellant does not want to pursue the appeal, appellate authorities have the appellant does not want to pursue the appeal, appellate authorities have the appellant does not want to pursue the appeal, appellate authorities have inherent power to dismiss the appeal for non inherent power to dismiss the appeal for non-prosecution as held by the Hon'ble prosecution as held by the Hon'ble Bombay High Court in the case of M/s Chemipol Vs. Union of India in Excise Bombay High Court in the case of M/s Chemipol Vs. Union of Ind Bombay High Court in the case of M/s Chemipol Vs. Union of Ind Appeal No. 62 of 2009. Since, the Appellant has not presented any argument and Appeal No. 62 of 2009. Since, the Appellant has not presented any argument and Appeal No. 62 of 2009. Since, the Appellant has not presented any argument and submission or any paper filed in support of its claim, the appeal is decided submission or any paper filed in support of its claim, the appeal is decided submission or any paper filed in support of its claim, the appeal is decided judiciously based on materials available on record. judiciously based on materials available on record. 4.5 It is pertinent to add here th It is pertinent to add here that laws assist those who are vigilant and not at laws assist those who are vigilant and not those who sleep over their rights. It means equity comes to the aid of the vigilant those who sleep over their rights. It means equity comes to the aid of the vigilant those who sleep over their rights. It means equity comes to the aid of the vigilant and not the slumbering. In all actions, suits and other proceedings at law and in and not the slumbering. In all actions, suits and other proceedings at law and in and not the slumbering. In all actions, suits and other proceedings at law and in equity, the diligent and careful plaintiff i equity, the diligent and careful plaintiff is favoured and prejudicial of him who is s favoured and prejudicial of him who is careless. Viewed thus, it is presumed that the appellant has no further cogent careless. Viewed thus, it is presumed that the appellant has no further cogent careless. Viewed thus, it is presumed that the appellant has no further cogent reasoning or/and evidence to substantiate the grounds taken in this impugned reasoning or/and evidence to substantiate the grounds taken in this impugned reasoning or/and evidence to substantiate the grounds taken in this impugned appeal. It is trite that the onus is on person making the c appeal. It is trite that the onus is on person making the claim, and the primary laim, and the primary responsibility/onus/burden for proving the claim made before the tax authorities responsibility/onus/burden for proving the claim made before the tax authorities responsibility/onus/burden for proving the claim made before the tax authorities (Assessing Officers/Appellate Authorities) lies with the assessee/appellant. In (Assessing Officers/Appellate Authorities) lies with the assessee/appellant. In (Assessing Officers/Appellate Authorities) lies with the assessee/appellant. In the present case, the appellant has not been able to even discharge the primary the present case, the appellant has not been able to even discharge the p the present case, the appellant has not been able to even discharge the p onus/burden statutorily & judicially cast upon him to substantiate the claims onus/burden statutorily & judicially cast upon him to substantiate the claims onus/burden statutorily & judicially cast upon him to substantiate the claims made in the grounds of appeal in spite of adequate time and opportunities given the grounds of appeal in spite of adequate time and opportunities given the grounds of appeal in spite of adequate time and opportunities given as brought out in the foregoing paras. During the appellate proceedings, inspite of as brought out in the foregoing paras. During the appellate proceedings, inspite of as brought out in the foregoing paras. During the appellate proceedings, inspite of numerous opportunities, no justifications/evidences have been filed by the s opportunities, no justifications/evidences have been filed by the s opportunities, no justifications/evidences have been filed by the appellant to controvert the findings and additions made by the AO. It is seen that appellant to controvert the findings and additions made by the AO. It is seen that appellant to controvert the findings and additions made by the AO. It is seen that the AO has given detailed findings in the assessment order which have not been the AO has given detailed findings in the assessment order which have not been the AO has given detailed findings in the assessment order which have not been disputed by the appellant disputed by the appellant by way of any submissions in support of the grounds by way of any submissions in support of the grounds of appeal. I do not find any reasons to interfere with the order passed by the AO. of appeal. I do not find any reasons to interfere with the order passed by the AO. of appeal. I do not find any reasons to interfere with the order passed by the AO. Accordingly, the addition made by the AO is hereby confirmed. Accordingly, these Accordingly, the addition made by the AO is hereby confirmed. Accordingly, these Accordingly, the addition made by the AO is hereby confirmed. Accordingly, these grounds of appeal are dismissed. grounds of appeal are dismissed. 4.6 It is, thus, evident that the appellant has no evidence to substantiate the is, thus, evident that the appellant has no evidence to substantiate the is, thus, evident that the appellant has no evidence to substantiate the grounds taken and it has not even once argued with any supporting, relevant and grounds taken and it has not even once argued with any supporting, relevant and grounds taken and it has not even once argued with any supporting, relevant and cogent arguments/averments, constraining me to, dismiss this appeal as no cogent arguments/averments, constraining me to, dismiss this appeal as no cogent arguments/averments, constraining me to, dismiss this appeal as no material change has been bro material change has been brought out by the appellant, to what was available ught out by the appellant, to what was available

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before the AO. Therefore, order made decided ex before the AO. Therefore, order made decided ex-parte and appeal of the parte and appeal of the appellant is dismissed dismissed.” 3. Before us, the learned counsel for the assessee submitted that Before us, the learned counsel for the assessee submitted that Before us, the learned counsel for the assessee submitted that the assessee is a salaried employee and coul the assessee is a salaried employee and could not properly pursue d not properly pursue the appellate proceedings as the notices issued by the learned the appellate proceedings as the notices issued by the learned the appellate proceedings as the notices issued by the learned CIT(A) were allegedly served on the assessee’s old official e-mail CIT(A) were allegedly served on the assessee’s old official e CIT(A) were allegedly served on the assessee’s old official e address. It was submitted that the non address. It was submitted that the non-compliance was neither compliance was neither deliberate nor intentional. deliberate nor intentional.

5.1 Having regard to the explanation furnished before us, coupled Having regard to the explanation furnished before us, coupled Having regard to the explanation furnished before us, coupled with the undertaking extended by the learned counsel for the with the undertaking extended by the learned counsel for the with the undertaking extended by the learned counsel for the assessee, and bearing in mind the overarching requirement of assessee, and bearing in mind the overarching requirement of assessee, and bearing in mind the overarching requirement of

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advancing substantial justice, we deem it appropriate, in the advancing substantial justice, we deem it appropriate, in the advancing substantial justice, we deem it appropriate, in the peculiar facts and circumstances of the case, to afford one more facts and circumstances of the case, to afford one more facts and circumstances of the case, to afford one more opportunity to the assessee. opportunity to the assessee.

5.2 Accordingly, the impugned order passed by the learned CIT(A) Accordingly, the impugned order passed by the learned CIT(A) Accordingly, the impugned order passed by the learned CIT(A) is set aside and the matter is restored to his file for fresh is set aside and the matter is restored to his file for fresh is set aside and the matter is restored to his file for fresh adjudication in accordance with law after adjudication in accordance with law after affording adequate affording adequate opportunity of hearing to the assessee and after considering such opportunity of hearing to the assessee and after considering such opportunity of hearing to the assessee and after considering such submissions and documentary evidence as may be furnished in submissions and documentary evidence as may be furnished in submissions and documentary evidence as may be furnished in support of the grounds raised. The assessee is, however, directed to support of the grounds raised. The assessee is, however, directed to support of the grounds raised. The assessee is, however, directed to cooperate fully in the appellate proceedin cooperate fully in the appellate proceedings and ensure prompt gs and ensure prompt compliance with all notices and directions that may be issued by compliance with all notices and directions that may be issued by compliance with all notices and directions that may be issued by the learned CIT(A). Failure to do so shall entitle the learned CIT(A) the learned CIT(A). Failure to do so shall entitle the learned CIT(A) the learned CIT(A). Failure to do so shall entitle the learned CIT(A) to proceed in accordance with law. The grounds raised by the to proceed in accordance with law. The grounds raised by the to proceed in accordance with law. The grounds raised by the assessee are accordingly allowed for st assessee are accordingly allowed for statistical purposes. atistical purposes.

Order pronounced in the open Court on ounced in the open Court on 18/05/2026. /05/2026. Sd/- Sd/- (RAHUL CHAUDHARY RAHUL CHAUDHARY) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 18/05/2026 Kunal Kumar, P.S.

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Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.

BY ORDER, BY ORDER, //True Copy// (Assistant Registrar) (Assistant Registrar) ITAT, Mumbai ITAT, Mumbai