CHAKRAPANI NAGARAJAN,CHENNAI vs. ITO, NCW-19(3), CHENNAI

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चेई म।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH, CHENNAI

BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER
Chakrapani Nagarajan,
No. 45, Duraiswamy Garden, 1st
Floor, Saidapet,
Chennai-600015 (Tamil Nadu)
Non-corporate Ward 19(3),
Aayakar Bhawan-Annexe
Building, No. 121, M.G. Road,
Nungambakkam,
Chennai-600034 (Tamil Nadu)
Appellant/ Assessee

Respondent/ Revenue

Assessee represented by Shri S.P. Chidambaram, Advocate
Department represented by Ms. Sandhya Rani Kure, JCIT.
Date of hearing
16/09/2025
Date of pronouncement
26/09/2025

PER: RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER:
1. This appeal by the assessee is directed against the order of National Faceless
Appeal Centre, Delhi (NFAC)/learned Commissioner of Income Tax (Appeals) [in short, the ld. CIT(A)] dated 17/02/2025 for the Assessment Year (AY) 2018-19
as per ground of appeal on record.
2. At the outset of hearing, we found from perusal of record that there is delay of 63 days in filing this appeal before this Tribunal for which, the assessee has filed an application for condonation of delay in the form of affidavit mentioning the fact that the due to ill health of son of the assessee and other personal problems, the assessee could not file appeal within the prescribed time limit. The concerned Chartered Accountant was also travelling during the month of April

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Chakrapani Nagarajan Vs ITO and May and accessed my e-portal only during the 2nd week of June and intimated the assessee that order has been passed by the First Appellate
Authority. Thereafter the concerned Chartered Accountant of the assessee approached the present ld. AR and then filed the appeal before the Tribunal. The assessee stated that the delay is not intentional and deliberate, the same was due to situation beyond his control. He has good case on merit and is likely to succeed, if one more opportunity is provided to the assessee.
3. On the other hand, the ld. Sr.DR for the revenue on the application of condonation of delay, submitted that the Bench may take appropriate view as per law.
4. We have considered the rival submissions. On the issue of condonation of delay, we find that the delay was not deliberate and occurred due to ill health of son of assessee as mentioned in the application for condonation of delay. Thus, we condone the delay of 63 days in filing this appeal before the Tribunal and admit the same for hearing.
5. On merit of the case, the brief facts of the case are that the assessee had not filed return of income for the assessment year under consideration as per the information flagged under Risk Management Strategy formulated by the CBDT through ITBA Portal. It was noticed that the assessee had sold immovable property amounting to Rs. 1,11,75,000/-. Further the assessee had received contract payments of Rs. 8,18,640/- from one M/s Estrat Logistics Private
Limited during the assessment year under consideration. The case of the assessee was, therefore, reopened under Section 148A(d) of the Income Tax

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Act, 1961 (in short, the Act) dated 27/03/2022. Subsequently, notice under Section 148 of the Act was issued to the assessee on 31/03/2022. However, the assessee did not file any return of income even in response to notice under Section 148 of the Act. The Assessing Officer issued notices under Section 142(1) of the Act from time to time and delivered it to assessee through e-mail, however, the assessee filed only part reply alongwith enclosed copy of computation of capital gains, copy of purchase deed, copy of construction agreement and other related documents but still the return of income was not filed by the assessee for the assessment year under consideration. The Assessing Officer, therefore, computed the income of the assessee by taking the entire sale consideration of Rs. 1,11,75,000/- as capital gains and added to the total income of the assessee. Further the Assessing Officer also added a sum of Rs. 65,491/- under Section 44AD of the Act.
6. Aggrieved by the order of Assessing Officer, the assessee filed appeal before the ld. CIT(A) but did not furnish any evidence in support of its grounds of appeal raised before the ld. CIT(A). In absence of any documentary evidence and substantial response, the ld. CIT(A) confirmed the additions made by the Assessing Officer.
7. Further aggrieved by the order of ld. CIT(A), the present appeal has been filed before this Tribunal.
8. During the appellate proceedings before us, the assessee raised a legal ground that the notice issued under Section 148 of the Act is void as the notice was issued by the Juri ictional Assessing Officer (JAO) and not by Faceless

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Assessing Officer (FAO). It was also submitted by the ld. AR of the assessee that the capital gains worked out by the Assessing Officer and duly confirmed by the ld. CIT(A) has no basis as the land, which was sold, was an agricultural land and is exempt from income under Section 2(14) of the Act. The assessee also submitted that the estimation of income by the Assessing Officer under Section 44AD of the Act by computing 8% as gross profit on the total contract receipts is also not justified. The ld. AR then conceded that there was no compliance by the assessee both before the Assessing Officer and the ld. CIT(A) and in the interest of justice, the issue may be restored back to the file of Assessing Officer to adjudicate the entire issue afresh.
9. The ld. Sr.DR, on the other hand, justified the action of the lower authorities and submitted that the assessee does not deserve any leniency. On the legal ground raised by the assessee, the ld. Sr.DR submitted that the same was not objected either before the Assessing Officer or before the ld. CIT(A) and thus, raising this issue for the first time before the Tribunal is not proper and tenable.
10. We have considered the rival submissions, we find it proper to restore the issue back to the file of Assessing Officer for fresh adjudication. The assessee was directed to raise all the issues before the Assessing Officer first and provide all documents/evidences to substantiate its claim which the ld. AR of the assessee has taken before us and also undertake that the assessee will make necessary compliance before the Assessing Officer and submit all the relevant documents.

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Order pronounced in the open court on 26/09/2025. (SS VISWANETHRA RAVI) (RATNESH NANDAN SAHAY)

JUDICIAL MEMBER ACCOUNTANT MEMBER
Chennai, Dated: 26/09/2025
*Ranjan
Copy to:
1. Assessee
2. Revenue
3. CIT
4. DR
5. Guard File

By order

Sr. Private Secretary, ITAT, Chennai