PRIYANKA KHATRI,CHENNAI vs. DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 7(1), CHENNAI, CHENNAI

The assessee is an individual and did not file the return of income for the year under consideration. The A.O received information that the assessee is having substantial financial transactions including sale of immovable property during the year under consideration. Since the assessee did not file the return of income, the A.O reopened the assessment by issue of notice u/s. 148 of the Act. The assessee neither filed the return of income in response to the notice nor not filed any details as called for by the A.O. Therefore, the A.O completed the assessment u/s. 147 r.w.s 144 of the Act assessing income at Rs.42,68,665/-. Aggrieved, the assessee filed further appeal before the CIT(A). Even before the CIT(A), the assessee did not respond and therefore, the CIT(A) confirmed the additions made by the A.O ex-parte. The assessee is in appeal before the Tribunal against the order of the CIT(A).

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee submitted that the assessee had some personal crisis and was travelling due to which she could not concentrate on income tax matters. The Ld. AR further submitted that the assessee therefore completely relied on her counsel for handling the tax matters who did not provide proper professional support and therefore the assessee could not represent the case properly before the lower authorities. 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

The appeals in ITA No.4151/Chny/2025 is arising from the AO's order of penalty u/s.271F and ITA No.4145/Chny/2025 is emanating from the penalty order of the AO passed u/s.271(1)(b). The CIT(A) has dismissed the appeal as not maintainable on the ground that the assessee has not paid the tax demand arising from the order of the AO passed under section 147 r.w.s.144 of the Act. Since we have remitted the quantum appeal back to the CIT(A) for fresh consideration, we are remitting the appeal against the penalty orders also back to CIT(A) with a direction to consider the same along with quantum appeal afresh. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly.

Further, we also levy a cost of Rs.15,000/- (Fifteen 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 CIT(A).

In the result, the appeals of the assessee are allowed for statistical purposes.