GANESAN RADHAKRISHNAN ,COIMBATORE vs. ITO , NON CORP WARD 2(3), CBE, COIMBATORE

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ITA 422/CHNY/2024Status: DisposedITAT Chennai11 June 2024Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) failed to adhere to the principles of natural justice by not providing a proper opportunity for the assessee to be heard. Therefore, the order was set aside to allow the assessee to present their case.

What were the facts?

The assessee, engaged in money lending, deposited cash during the demonetization period. The Assessing Officer made an addition treating these deposits as income from other sources. The CIT(A) confirmed the assessment ex-parte.

What were the issues?

Whether the CIT(A) followed the principles of natural justice by providing adequate opportunity to the assessee before proceeding ex-parte. Whether the cash deposits made during demonetization were rightly treated as income from other sources.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

Hearing: 11.06.2024Pronounced: 11.06.2024

आयकर अपीलीय अिधकरण ‘ए’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय �ी मनोज कुमार अ�वाल ,लेखा सद� एवं माननीय �ी मनु कुमार िग�र, �ाियक सद� के सम�। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा�रणवष� / Assessment Year: 2017-18) Ganesan Radhakrishnan, Vs. The Income Tax Officer, No.30-B, Sivaji Colony, Non Corporate Ward 2(3) Edayarpalayam Post, Coimbatore. Edayarpalayam, Coimbatore 641 025. [PAN: AEMPR 5076H] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : None ��यथ� क� ओर से /Respondent by : Shri. R.Mukundan, IRS, JCIT. सुनवाई क� तार�ख/Date of Hearing : 11.06.2024 घोषणा क� तार�ख /Date of Pronouncement : 11.06.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)

This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals)(NFAC) Delhi [CIT(A)] dated 19.12.2023 for assessment Year 2017-18.

2.

Assessee is an individual doing money lending business, has deposited a cash of Rs. 12,000/- in Indian Bank and Rs.10,02,500/- in Axis Bank during demonetization period. Assessee appeared before the Assessing Officer (‘AO’ in short) and filed ‘Online response’ but AO passed order under section 143(3) of the Income Tax Act, 1961 (In short ‘Act’) dated 27.12.2019 and made an addition of Rs.10,14,500/- u/s 68 of the Act treating the specified notes as income from other sources.

3.

Further, the appellant filed the appeal against the order under section 143(3) of the Act dated 27.12.2019 before the Ld. CIT(A) wherein the assessee filed submission dated 07.04.2023 however, failed to appear before the first appeal authority pursuant to notice dated 12.12.2023 which caused Ld.CIT(A) to proceed exparte on merits. Accordingly, the assessment was confirmed on merits against which assessee is in further appeal before us.

4.

None appeared for the assessee. The Ld.DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the ld. first appellate authority pursuant to final notice dated 12.12.2023.

5.

We have gone through the entire record and submissions of Ld.DR. Though we appreciate the submissions of Ld.DR however, we find that Ld.CIT(A) has failed to follow the principles of natural justice in true spirit. Ld.CIT(A) could have given one more chance to appear before him to substantiate the cash deposit of Rs.12,000/- in Indian Bank and Rs.10,02,500/- in Axis Bank during demonetization period. Hence, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld.CIT(A) for adjudication on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.

6.

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

Order pronounced in the open court on 11th day of June, 2024 at Chennai.

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