RAMESH MANGILAL,KOLATHUR vs. INCOME-TAX OFFICER, NON CORP WARD 10(3), NUNGAMBAKKAM

The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) held that the assessee made only general contentions without providing any documentary proof to substantiate the claim of the assessee and confirmed the addition made by the Assessing Officer of ₹.1,40,28,200/-. The ld. CIT(A) further held that the said confirmation is subject to verification by considering the submissions of the assessee that the entire cash deposit made by him was of ₹.1,30,66,700/- across all banks account, whereas, the Assessing Officer has considered total cash deposit as ₹.1,40,28,200/-, which needs further reconciliation on behalf of the Assessing Officer. On being aggrieved, the assessee is in appeal before the Tribunal.

The ld. AR Shri Arihanth Jain, C.A. drew our attention to the para 3 of the assessment order and submits that the assessee has furnished the reasons for the delay in filing the return of income, but, however, the Assessing Officer was incorrect to treat the return of income as non-est. He further submits that the assessment was completed hurriedly under section 144 of the Act without following due procedure for the reason that the same is getting barred by limitation. By filing various details in the form of voluminous paper book, the ld. AR prayed to afford one more opportunity by remanding the matter to the file of the Assessing Officer for fresh consideration.

The ld. DR Ms. R. Anita, Addl. CIT drew our attention to para 2.1 of the assessment order and submits that notice under section 148 of the Act was issued on 31.03.2021 and the assessee is required to file the ITR within the time stipulated in the notice. Further, she argued that belated return filed under section 148 of the Act by itself void-ab-inito, because of not being filed with the time stipulated in the notice issued as the provisions. Moreover, the assessee filed the ITR just 15 days before it is getting barred by limitation. She vehemently argued that costs may be imposed, in case this Tribunal affords an opportunity by remanding the matter to the file of the Assessing Officer.

Heard both the parties and perused the material on record. We note that the assessment was completed under section 147 r.w.s. 144 r.w.s. 144B of the Act dated 30.03.2022. On perusal of the assessment order, we note that notice under section 148 of the Act was issued on 31.03.2021, whereas, the assessee filed return of income on 14.03.2022, just 16 days to go to complete the assessment proceedings before the case is getting barred by limitation on 31.03.2022. Considering the voluminous paper book filed before the Tribunal by filing various details, which are required to be examined by the Assessing Officer, taking into consideration of the submissions of the ld. AR and the ld. DR and in the interest of justice, we deem it proper to afford one more opportunity and remand the matter to the file of the Assessing Officer subject to the condition of payment of ₹.10,000/- in favour of the State Legal Aid Authority, Hon’ble Madras High Court within 30 days from the date of receipt of this order and the Assessing Officer shall satisfy the payment of cost and decide the issue afresh after considering evidences filed in paper book pages 216 to 278 and decide the issue on merits in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 17th July, 2025 at Chennai.