PONNAMBALAM THIRUMUGAN,CHENNAI vs. DCIT, CORP CIRCLE 5(2), CHENNAI
What did the Tribunal hold?
The Tribunal, while noting the assessee's negligence, decided to grant another opportunity based on the principle of natural justice. The appeal was restored to the CIT(A) for de novo adjudication after providing the assessee a reasonable opportunity to be heard.
What were the facts?
The assessee's appeal concerns the confirmation of an addition of Rs. 81.22 Lacs due to disallowance of cash deposits in a bank account. The addition was made by the AO for lack of sufficient documentary evidence, and the CIT(A) confirmed it as the assessee failed to make an effective representation.
What were the issues?
Whether the addition made on account of disallowance of cash deposits in the bank account is justified without providing sufficient opportunity to the assessee to substantiate its case.
Which sections of the Income-tax Act were involved?
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
आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद4 एवं माननीय +ी मनु कुमार िग7र, "ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा9रणवष9 / Assessment Year: 2014-15) Shri Ponnambalam Thirumugan DCIT 14/11, Sampoorna Apartments Corporate Circle- 5(2), बनाम/ Vs. Rajagopalan Street, Chennai. West Mambalam, Chennai-600 033. "थायीलेखासं./जीआइआरसं./PAN/GIR No. ABYPT-8074-G (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ" कीओरसे/ Appellant by : None " थ"कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 30-04-2024 घोषणा की तारीख /Date of Pronouncement : 06-05-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of the order of learned Commissioner of Income Tax, (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 22-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s 254 of the Act on 05-12-2019. The sole grievance of the assessee is confirmation of addition of Rs.81.22 Lacs on account of disallowance of cash deposits in bank account. At the time of hearing, none appeared for assessee. The Ld. Sr. DR pleaded for dismissal of the appeal on the ground that this is second round of appeal.
From assessment order, it could be seen that the assessee merely submitted that student fees received in the hands of RTL academy was deposited in her bank accounts. However, in the absence of sufficient documentary evidences in this respect, the impugned addition was made. The Ld. CIT(A) confirmed the addition since the assessee failed to make any effective representation therein. Aggrieved, the assessee is in further appeal before us. 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 de novo 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 stand allowed for statistical purposes. Order pronounced on 6th May, 2024 (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) "ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 06-05-2024 DS आदेशकीUितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु=/CIT 4. िवभागीय"ितिनिध/DR 5. गाडBफाईल/GF
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