SANKARAN BALAJI,VELLORE vs. ITO, WARD-1, VELLORE

The assessee is an individual and engaged in the business of dealing in Mysore Sandal soap and allied products and did not file the return of income. The A.O received information that the assessee has deposited cash to the tune of Rs.58,33,715/-. Since the assessee did not file the return of income, the A.O reopened the assessment and the assessee in response filed the return of income admitting a total income of Rs. 5,93,880/-. The A.O did not accept the submissions of the assessee that the cash is sourced from sale of products, since the assessee did not file any supporting evidences. The A.O made an addition of Rs.18,22,500/- deposited by the assessee in specified bank notes (SBN). The A.O completed the assessment assessing the income at Rs.30,68,781/- after making other additions/disallowances. Aggrieved, the assessee filed further appeal before the CIT(A). Since the assessee did not respond to the notices, the CIT(A) upheld the order of 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 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 with an undertaking the assessee would represent the case properly. The ld. DR vehemently opposed the prayer of the Ld. AR stating that the assessee was already given an opportunity and has been consistently non cooperative even during the remanded proceedings. Considering the facts and circumstances peculiar to assessee's case, we are inclined to give one more

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 CIT(A).

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 13th day of May, 2026 at Chennai.