KALIAPPAN SATSHATHIPATHI,DHARMAPURI vs. CIT(A), SALEM

The assessee is an individual and is engaged in the business of running a coaching centre. The assessee did not file the return of income for AY 2016-

The A.O noticed that the assessee has deposited cash to the tune of Rs.1,33,24,580/- 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 did not respond to the notices issued by the A.O and therefore the A.O completed the assessment u/s. 147 r.w.s 144 of the Act treating the entire cash deposit as unexplained. Aggrieved, the assessee filed further appeal before the CIT(A). Even before the CIT(A), the assessee neither appeared nor submitted any details. Therefore, the CIT(A) dismissed the appeal ex-parte confirming the addition made by the A.O. The assessee is in appeal before the Tribunal against the order of the CIT(A).

There is a delay of 905 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. The assessee in the affidavit has stated the following reasons for delay: a. Ccontinued illness and medical treatment during the relevant period which prev3ented from attending legal matters.

Accordingly, the assessee submitted that the delay was not intentional deliberate or negligence, but due to bonafide reasons beyond the control of the assessee. Having heard both the parties and perused the material on record, we are of the view that there is a reasonable and sufficient cause for the delay in filing the appeal before the Tribunal. Therefore, following the

We have heard the parties, and perused the material available on record. The Ld. Authorized Representative (AR) of the assessee reiterated the submissions made for the delay in filing the appeal before the Tribunal is also the reason for not properly representing the case before the lower authorities. The Ld. AR also submitted that the medical records of the assessee in support of the claim that one of the reasons for the delay is due to the ill-health of the assessee. The Ld. AR further the assessee's wife is running a petrol pump under the proprietorship of M/s. Mekala Agencies and the daily collections from the petrol pump are deposited in the bank account of the assessee on behalf of his wife for operational convenience. The Ld. AR submitted that the money deposited does not belong to the assessee and the source for the same is from the collections from the petrol pump run by assessee's wife. The Ld. AR made an undertaking that if given one more opportunity the relevant details would be submitted before the lower authorities since the assessee is having a good case on merits. 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 AO 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.30,000/- (Thirty 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 01st day of June, 2026 at Chennai.