SHRI VUMMIDI CHANDRAIAH CHETTY,,CHENNAI vs. ITO, NCW-1 (3),, CHENNAI

The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-2, Chennai, in dated 29.08.2019 for assessment year 2011-12.

Shri. Vummidi Chandraiah Chetty Murali, the assessee, an individual has not filed his return of income for assessment year 2011-

The assessee was doing business up to assessment year 2010-11, which was taken over by Mr. Madhusudhan w.e.f. 01.04.2010. During the course of assessment proceedings, the AO called for details for the cash deposits made in the bank accounts of the assessee. The assessee explained that the cash deposits were that of V. Murali, HUF out of the sale proceeds of the property and furnished various details and documents. The AO relying on the sworn statement of the purchaser, who had categorically denied paying cash to the assessee, made an addition of Rs. 1.9 crores in the hands of the assessee.

The Ld. AR submitted that the auditor who represented the case suffered from cancer and he could not pursue the case before the Ld. CIT(A). Therefore, pleaded that one more opportunity may be given to the assessee before the Ld. CIT(A) so that the issues are decided on merits in the interests of justice. Per contra, the Ld. DR supported the orders of the lower authorities as the assessee has not perused the matter.

We heard the rival submissions and gone through the relevant material. Since the assessee has failed to pursue the appeal before the Ld. CIT(A), the Ld. CIT(A) dismissed the appeal. Since the assessee pleads one more opportunity before the Ld. CIT(A) for deciding the issues on merit, we deem it fit to remit the issues back to the file of Ld. CIT(A) for a fresh examination subject to a cost of Rs. 10,000/- on the assessee, who shall pay the same to the Prime Minister National Relief Fund (PMNRF). Subject to the assessee depositing Rs. 10,000/-, to the PMNRF and producing the copy of the receipt thereof before the Ld. CIT(A), the Ld. CIT(A) would post the case for hearing. The assessee shall place relevant material before the Ld. CIT(A) and actively pursue his appeal before the Ld. CIT(A) in accordance with law. The Ld. CIT(A), on due examination of them and after affording due opportunity to the assessee/AO as the case may be, shall decide the issues in accordance with law.

In the result, the appeal filed by the assessee is partly allowed for statistical purposes.