PARAMASIVAM PRABHAKARAN,NAMAKKAL vs. ITO, WARD-1,, TIRUCHENGODE
Facts
The assessee, engaged in wholesale trading of gunny bags, had their assessment reopened by the AO due to cash deposits and failure to file a return. The AO made an addition of Rs. 3,39,88,505/- as unexplained money under section 69A. The assessee failed to respond to notices from both the AO and the CIT(A), leading to an ex-parte dismissal by the CIT(A).
Held
The Tribunal condoned the 95-day delay in filing the appeal, acknowledging a reasonable cause. Considering the assessee's dependency on counsel and lack of technical knowledge, the Tribunal decided to give the assessee one more opportunity by remitting the appeal back to the AO for fresh consideration.
Key Issues
Whether the delay in filing the appeal should be condoned and if the assessee should be granted another opportunity for assessment proceedings.
Sections Cited
69A, 147, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & MS. PADMAVATHY.S
आदेश / O R D E R
PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 27.06.2025 for Assessment Year (AY) 2018-19.
The assessee is an individual and is engaged in the business of wholesale trading of gunny bags. The assessing officer (AO) reopened the assessment for the reason that the assessee has made cash deposits. Since the assessee did not file the return of income, the AO reopened the assessment.
ITA No. 3668/Chny/2025 Paramasivam Prabhakaran :- 2 -:
The assessee did not respond to the notices and therefore the AO completed the assessment under section 147 and made an addition of Rs.3,39,88,505/- as unexplained money under section 69A of the Act. Aggrieved, the assessee filed further appeal before the CIT(A). The assessee did not respond to the various notices issued by the CIT(A). Therefore the CIT(A) dismiss the appeal ex-parte . The assessee is in appeal before the tribunal against the order of the CIT(A).
There is a delay of the 95 days in filing the appeal before the Tribunal. Having heard both the parties and perused the material on record, we are of the view that there is a reasonable and sufficient cause for the delay in filing the appeal before the Tribunal. Therefore following the Hon’ble Supreme Court decision in the case of Collector, Land Acquisition Vs. MST.Katiji & Ors., (167 ITR 471) (SC) we condone the delay of in filing the appeal and admit the appeal for adjudication.
We heard the parties and perused the material on record. The Ld. AR submitted that the assessee is a wholesale gunny bag vendor and does not have any technical knowledge to access computers. The Ld. AR further submitted that the assessee therefore is completely dependent on counsel with regard to income tax matters who did not handle assessee's case properly. Accordingly, the Ld. AR submitted that the assessee did not appear before the AO as well as CIT(A). The Ld. AR accordingly, prayed that the assessee be given one more opportunity to represent the case properly before the lower authorities. Considering the facts and circumstances unique to the assessee's case, we are inclined to give one more opportunity to the assessee by remitting the appeal back to the AO. The AO is directed to consider the impugned issue afresh by calling for necessary details and decide the case in
ITA No. 3668/Chny/2025 Paramasivam Prabhakaran :- 3 -:
accordance with law. The assessee is directed to file the relevant documents in support of the impugned additions made by the AO and cooperate with assessment proceedings without seeking unnecessary adjournments. It is ordered accordingly.
Further, we also levy a cost of Rs.5,000/- (Five thousand only) in the appeal since considerable time and efforts have been spent by the Exchequer and for the reason that the assessee being delinquent before the lower authorities. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the AO.
In result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 25th day of February, 2026 at Chennai.
Sd/- Sd/- (एबी टी. वक�) (पदमावती यस) (ABY. T. Varkey) (Padmavathy.S) �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 25th February, 2026. EDN, Sr. P.S आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु�/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF
