NIGILESAN REVATHI,THOOTHUKKUDI vs. INCOME TAX OFFICER, WARD 2, TUTICORIN, TUTICORIN

ITA 4176/CHNY/2026Status: DisposedITAT Chennai06 October 2026AY 2018-198 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the appeal before the CIT(A) was filed with a significant delay of 655 days, and the CIT(A) dismissed it solely on the ground of limitation without adjudicating the substantive grounds. The assessee had raised crucial jurisdictional issues concerning the validity of the reassessment proceedings, including the notice under section 148 and the approval under section 151. These jurisdictional aspects, along with the merits of the addition of Rs. 56,98,909/- (which the assessee contended should be examined under section 56(2)(ib) read with section 2(24)(xiii) and not treated as entire income), were not examined by the CIT(A). The Tribunal found that these issues involved both legal and factual aspects. Considering the violation of principles of natural justice alleged by the assessee and the need for a fresh examination, the Tribunal set aside the CIT(A)'s order and restored the matter to the AO for de novo adjudication. The AO is directed to examine the jurisdictional objections and the addition on merits, considering policy documents, premiums paid, receipts, nature of receipt, applicable provisions, and the assessee's explanations and evidence, while providing an effective opportunity of hearing. The Tribunal expressed no opinion on the merits or jurisdictional issues.

What were the facts?

The assessee, Nigilesan Revathi, is in appeal against the order of the CIT(A) dated 29.05.2026, which confirmed the assessment order passed under section 147 for Assessment Year 2018-19. The assessee had not filed a return of income. Information indicated receipt of Rs. 60,72,996/- from LIC. The case was reopened, and the Assessing Officer (AO) treated Rs. 56,98,909/- as income from other sources due to the assessee's alleged failure to respond to notices. The assessee's appeal before the CIT(A) was filed with a delay of 655 days. The CIT(A) dismissed the appeal in limine on grounds of limitation without adjudicating the substantive issues.

What were the issues?

1. Whether the assessment order dated 30.11.2023 passed by the National Faceless Assessment Centre under section 147 read with section 144 of the Act for AY 2018-19 is invalid and void ab initio. (Assessee's contention: The order is bad in law. Revenue's contention: Not recorded). 2. Whether the CIT(A) violated the principles of natural justice by passing an ex parte appellate order without affording sufficient opportunity to the appellant. (Assessee's contention: Violation occurred. Revenue's contention: Not recorded). 3. Whether the notice under section 148 dated 12.04.2022 issued by the Income Tax Officer, Ward 2, Tuticorin, is in violation of section 151 of the Act, requiring approval from the Principal Chief Commissioner of Income Tax (PCCIT) for issuance after three years from the end of the relevant AY, rendering the assessment order invalid. (Assessee's contention: Notice is invalid due to lack of proper approval. Revenue's contention: Not recorded). 4. Whether the CIT(A) erred in dismissing the appeal in limine on the ground of delay without properly appreciating the facts and circumstances. (Assessee's contention: Dismissal was unjustified. Revenue's contention: Supported CIT(A)'s order on limitation). 5. Whether the CIT(A) was justified in upholding the assessment order. (Assessee's contention: Upholding was unjustified. Revenue's contention: Supported CIT(A)'s order). 6. On merits, whether the CIT(A) was justified in confirming the addition of Rs. 56,98,909/- treating the entire proceeds from LIC as income from other sources. (Assessee's contention: Only income component is taxable under section 56(2)(ib) read with section 2(24)(xiii), not entire proceeds. Revenue's contention: Not recorded).

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 148,Section 151,Section 56(2)(ib),Section 2(24)(xiii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI

Before: GAGAN GOYAL & SHRI MANU KUMAR GIRI

Hearing: 16.09.2026

PER MANU KUMAR GIRI, JM:

This appeal filed by the assessee is directed against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “the Ld. CIT(A)”], dated 29.05.2026, confirming the assessment order passed under section 147 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), for the Assessment Year 2018-19. Nigilesan Revathi Vs ITO W-2 Tuticorin :

The order continues below.

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