VIMALA,BANGALORE vs. INCOME TAX OFFICER, NON CORPORATE WARD 15(1), CHENNAI , CHENNAI

Brief facts of the case are that the ld.CIT (A) upheld the order passed by the Assessing Officer dated 14.12.2018 under Section 143(3) by making an addition of cash deposit of Rs.24,12,000/- in two bank accounts and treated as unexplained income under Section 68 of the Income Tax Act.

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 order and dismissed the appeal of the assessee on merits.

Aggrieved by the order of ld.CIT(E), the Assessee has filed this captioned appeal before this Tribunal.

The Ld. Counsel for Assessee submitted that the notice of hearing issued by the ld. CIT(E) was not received by the assessee. He further prayed for last opportunity before the ld.CIT(A) to adduce the explanation and evidence to substantiate the cash deposits in the bank accounts. Vimala Vs ITO NCW-15(5) :- 3 -:

Per contra, the Ld. DR Mr.ARV Sreenivasan, CIT has relied upon the order 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 order of the ld.CIT(A). 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 Ld. CIT (A) in its appellate proceedings. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for hearing on merits subject to cost of Rs.2,000/- (Rupees Two 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 of Madras. The proof of the same will be furnished by the Assessee before Ld.CIT(A) whose shall proceed for hearing the aforesaid appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case Vimala Vs ITO NCW-15(5) :- 4 -:

In the result, appeals filed by the assessee is allowed for statistical purpose. Order pronounced on 19 day of December, 2025 at Chennai. (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा सदय /Accountant Member (मनु कुमार िगर) (Manu Kumar Giri) ाियक सद / Judicial Member चेनई/Chennai, दनांक/Dated: 19December, 2025. SNDP/- Sr. PS आदेश क तलप अेषत/Copy to: 1. अपीलाथ/Appellant 2.  थ/Respondent 3. आयकर आयु/CIT, Chennai /Madurai/Coimbatore/Salem 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF