POONGAVANAM ELUMALAI, CHENNAI,CHENNAI vs. ITO, NON CORPORATE WARD -9(1), CHENNAI, CHENNAI

The assessee is an individual and did not file a return of income for A.Y 2018-19. The A.O received information that the assessee has deposited cash to the tune of Rs. 1,08,99,000/- into the bank account during the demonetization period and contractual receipts Rs.3,09,375/- and commission Poongavanam Elumalai :- 2 -: receipts of Rs. 25,425/-. The A.O reopened the assessment and called on the assessee to furnish the various details. Since, the assessee did not appear nor responded to the notices, the A.O completed the assessment u/s. 147 r.w.s 144 of the Act, making an addition of Rs. 1,08,99,000/- u/s. 69A of the Act and an addition on account of estimated profit to the tune of Rs.27,21,432/- and undisclosed commission income of Rs.25,425/-. Aggrieved, the assessee filed further appeal before the CIT(A).

There was delay of 654 days in filing the appeal before the CIT(A). The CIT(A) held that the appeal is not admitted and dismissed in limine. However, the CIT(A) proceeded to decide the case on merits whereby he has confirmed the various additions made by the A.O.

We have heard the both the parities, perused the material available on record. We notice from the perusal of the order of the CIT(A) that the assessee had filed a petition for condonation of delay stating that the assessee is suffering from various medical issues and could not attend to his business regularly. It if further noticed that the assessee has submitted the medical record pertaining to the ailments of the assessee before the CIT(A). However, we notice that the CIT(A) has dismissed the appeal in limine on the ground that there is no sufficient cause. Considering the facts and circumstances peculiar to the assessee's case, we are inclined to give one more opportunity to the assessee in the interest of natural justice and fair play. Accordingly, we are remitting the appeal back to the CIT(A) with a direction to condone the delay and decide the appeal afresh in accordance with law considering all the grounds raised by the assessee. The assessee is directed to submit the required

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 CIT(A).

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 07th day of January, 2026 at Chennai.