TPMM AND CO.,TIRUNELVELI vs. ITO, WARD-4, TIRUNELVELI

During appellate proceedings, the Ld.CIT(E), however, observed that the assessee had neither complied with the notices issued nor filed any documentary evidences in support of its contentions. In view of the above, the ld.CIT(E) passed an ex- parte orders and dismissed the appeals of the assessee on merits.

Aggrieved by the order of ld.CIT(E), the Assessee has filed this captioned appeals before this Tribunal. and 2711/Chny/2025 (AY 2017-18 & 2017-18) TPMM & Co Vs ITO W-(4) :- 3 -: 5. The Ld. Counsel for Assessee submitted that the notice of hearing issued by the ld. CIT(E) were not received by the assessee. He further prayed for last opportunity before the ld.AO to adduce the explanation and evidence to substantiate the cash deposits in the bank accounts.

Per contra, the Ld. DR Mr.ARV Sreenivasan, CIT has relied upon the orders of the Ld.CIT(E) and pleaded for the dismissal of the appeal on the ground that the Assessee neither appeared nor adduced relevant evidence/documents with regard to the addition sustained by the CIT (A).

We have heard the rival submissions and gone through the orders of the ld.CIT(A) and AO. We are of the considered opinion that in the interest of justice, the Assessee should be given last opportunity to appear and file the relevant evidence/documents to substantiate the addition of cash deposit before the AO in denovo assessment proceedings. Accordingly, the impugned orders are set aside and the appeals are restored back to the file of AO for hearing on merits subject to consolidated cost of Rs.10,000/- (Rupees Ten thousand) which shall be deposited preferably by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court and 2711/Chny/2025 (AY 2017-18 & 2017-18) TPMM & Co Vs ITO W-(4) :- 4 -: of Madras. The proof of the same will be furnished by the Assessee before AO whose shall proceed for hearing the aforesaid denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the aforesaid denovo assessment on merits as per law. Penalty levied u/s.271B also be looked into afresh by the AO.

In the result, appeals filed by the assessee are allowed for statistical purpose. Order pronounced on 19th day of December, 2025 at Chennai. (एस. आर. रघुनाथा) (मनु कुमार िग"र) (S.R. Raghunatha) (Manu Kumar Giri) "ाियक सद" / Judicial Member लेखा सद"य /Accountant Member चे"नई/Chennai, "दनांक/Dated: 19 December, 2025. SNDP/- Sr. PS