DURAIRAJ KALIDAS,GOBICHETTIPALAYAM vs. THE INCOME TAX OFFICER, ERODE

At the threshold, we observe that there is a delay of 645 days in the filing of the present appeal by the assessee. The assessee has filed an affidavit explaining that being a senior citizen, he is a layman lacking knowledge of income-tax proceedings and computer literacy. Consequently, he was unaware of the hearing notices issued electronically as well as the impugned order passed by the ld. CIT(A). The assessee came to know of the impugned order only upon the receipt of notices for recovery proceedings. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, we are satisfied that the assessee has demonstrated sufficient and reasonable cause for not presenting the appeal within the statutory period prescribed under law. Accordingly, in the interest of justice, the delay in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits.

Brief facts of the case are that the assessee, an individual and did not file his return of income for Assessment Year (AY) 2012-13. As per the information available with department, the AO found that the assessee made cash deposit to the tune of Rs.27,00,000/- in the bank account of the IDBI Bank Ltd, without filing a return of income for the year under consideration. The case was selected for scrutiny and the proceedings u/s.147 has been initiated for the AY 2012-13 and notice u/s.148 of the Act was issued to the assessee. In response, the assessee failed to file the return of income. Subsequently, the AO issued statutory notices to the assessee and by calling for details. However, the assessee chose to be silent and did not respond to any of the notices. Meanwhile, the AO issued notice u/s.133(6) of the Act and obtained bank account statement from IDBI bank, Gobichettipalayam. On perusal of the bank statement, the AO concluded the reassessment and passed an exparte order u/s.144 r.w.s 147 of the Act dated 27.12.2019, by making an addition of Rs.27,00,000/- as unexplained cash u/s.69A of the Act and adding the same to the total income of the assessee.

At the outset, we observed that ld.CIT(A) has provided five opportunities for the assessee to appear for hearings as detailed in paragraph 4.1 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence the ld.CIT(A) dismissed the appeal and passed an ex-parte order dated 14.08.2024 by confirming the order of the AO. Aggrieved by the impugned order of the Ld.CIT(A), the assessee is in appeal before us.

The ld.AR contended that the assessee, being a layman unversed in income-tax proceedings, was under the bona fide belief that he was not required to file a return of income for AY 2012-13. It was further submitted that due to a lack of computer literacy, the assessee remained unaware of the notices issued electronically by the ld.CIT(A) and learned of the impugned ex- parte order only upon receipt of the penalty notices. In view of these facts, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.

Per contra, the ld.DR submitted that the assessee has already been given sufficient opportunity and there is no error in the order of the ld.CIT(A) and hence, prayed for confirming the order of the ld.CIT(A).

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an ex-parte order by considering the information available with the department and on appeal the same has been dismissed by the ld.CIT(A),

Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh on merits in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 11th November, 2026 at Chennai. Sd/- Sd/- (एस एस 'व(वने) र'व) (एस. आर. रघुनाथा) (S.S. VISWANETHRA RAVI) (S. R. RAGHUNATHA) �या�यक सद+य/Judicial Member लेखा सद+य/Accountant Member चे�नई/Chennai, ,दनांक/Dated, the 11th November, 2026 EJTADA Digitally signed by E. Durga Naresh, Sr. PS EJTADA DURGA DURGA NARESH Date: 2026.11.13 NARESH 11:50:58 +05'30' आदेश क� ��त�ल�प अ�े�षत/Copy to:

अपीलाथ�/Appellant 2. ��यथ�/Respondent 3.आयकर आयु-त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 'वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF