What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's negligence, granted another opportunity to substantiate its case based on the principle of natural justice. This opportunity is conditional upon the assessee depositing Rs. 5,000/- within 30 days.

The assessee failed to appear before the lower authorities and before the ITAT. The appeal had a delay of 137 days, which was condoned. The Assessing Officer made an addition of Rs. 86.11 Lacs on account of cash deposits.

What were the issues?

Whether the assessee should be granted another opportunity to present its case despite negligence, and the conditions for such an opportunity.

Mani Senthil Murugan, Cuddalore vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

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

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 17-08-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 144 of the Act on 14-11-2019. The assessee has failed to appear before any of the lower authorities. None has appeared for assessee even before us. The Ld. Sr. DR pleaded for dismissal of the appeal. The registry has also noted a delay of 137 days in the appeal, the condonation of which has been sought by the assessee. Considering the period of delay, the delay is condoned.

In the assessment order, Ld. AO made addition of cash deposit for Rs.86.11 Lacs. The Ld. CIT(A) dismissed the appeal since assessee failed to make any submissions therein. Aggrieved, the assessee is in further appeal before us.

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. The same would come at a cost of Rs.5,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to learned AO who shall proceed for de novo assessment after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. AO shall be at liberty to proceed with framing of assessment on merits.

The appeal stand allowed for statistical purposes. Order pronounced on 20th May, 2024. (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद6 / JUDICIAL MEMBER लेखा सद6 / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 20-05-2024 DS आदेशकीXितिलिपअ1ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु;/CIT 4. िवभागीय"ितिनिध/DR 5. गाड@फाईल/GF

MANI SENTHIL MURUGAN,CUDDALORE vs. ITO, WARD 4, CUDDALORE

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