KUPPURAJ ARUNKUMAR,COIMBATORE vs. INCOME TAX OFFICER, COIMBATORE

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ITA 615/CHNY/2024Status: DisposedITAT Chennai29 May 2024AY 2017-2018Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)2 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, while noting the assessee's negligence, restored the appeal to the CIT(A) for a fresh adjudication. This was done to provide the assessee with another opportunity to substantiate their case, adhering to the principles of natural justice.

What were the facts?

The assessee deposited a significant amount of cash during the demonetization period, and the Assessing Officer (AO) treated a substantial portion of these deposits as unexplained. The AO made an addition under Section 69A, which was confirmed by the CIT(A) as the assessee failed to represent their case.

What were the issues?

Whether the unexplained cash deposits made by the assessee during demonetization could be added to their income. Whether the assessee should be granted another opportunity to present their case before the appellate authority.

Which sections of the Income-tax Act were involved?

Section 144,Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ (SMC

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

Hearing: 20.05.2024Pronounced: 29.05.2024

आयकर अपीलीय अिधकरण ‘बी’’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ (SMC) 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) Kuppuraj Arunkumar, Vs. The Income Tax Officer, No.63A, Bharathi Nagar Keerthi Thottam, Non Corporate Ward 1(3) Lakshmi Narayana Illam, Coimbatore. Kempatty Colony, Near Lake View Apartment, Coimbatore 641 001. [PAN: AZJPA 1768R] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : None ��यथ� क� ओर से /Respondent by : Shri. S. Easwar, IRS, JCIT. सुनवाई क� तार�ख/Date of Hearing : 20.05.2024 घोषणा क� तार�ख /Date of Pronouncement : 29.05.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 09.01.2024 in the matter of assessment order framed by the Ld.AO u/s 144 of the Act on 26-09-2019.

2.

Brief facts are that the assessee during demonetization period had deposited Rs.24,72,400/- however, total deposits during the entire financial year 2 2016-17 was Rs.28,10,489/-. The AO observed that out of total deposits of Rs.28,10,489/- in financial year 2016-17, Rs.23,75,000/- deposited in the bank account was unexplained. Hence, in the absence of explanation AO proceeded ex- parte assessment u/s 144 of the Act and made an addition u/s 69A as unexplained money. The Ld. CIT(A) confirmed the same since the assessee failed to make any representation therein. Aggrieved, the assessee is in further appeal before us. During hearing none has appeared for assessee. The Ld. Sr. DR has pleaded for dismissal of the appeal.

3.

Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the appeal is restored back to learned CIT(A) for denovo adjudication after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with disposal of appeal on merits.

4.

The appeal is allowed for statistical purposes.

Order pronounced on 29th day of May, 2024

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