KANNAPPAN SANTHAMOORTHI, KRISHNAGIRI vs. ITO, WARD 1(1), KRISHNAGIRI, KRISHNAGIRI

The registry has noted a delay of 1535 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of a condonation petition which is accompanied by affidavit of the assessee. The Ld. AR submitted that if Covid-19 Lockdown period is excluded, the delay would be substantially lower. In the affidavit, it has been submitted that due to ongoing divorce proceedings, the assessee was not staying at the given address and therefore, missed the notices and the impugned order. It was only when the demand notices were received from Tax Recovery Officer, the fact of passing of impugned order came to the notice of the assessee after which the assessee took steps to file the resent appeal. It has also been pleaded that the delay was neither willful not wanton but due to circumstances beyond the control of the assessee. Though Ld. Sr. DR has opposed admission of appeal, however, considering the adverse circumstances being faced by the assessee, we condone the delay and admit the appeal for adjudication on merits.

The Ld. AR has prayed for another opportunity of hearing before lower authorities which has been opposed by Ld. Sr. DR.

From case records, it emerges that the assessee maintained 4 bank accounts and deposited cash of Rs.202.18 Lacs as tabulated in para 4.1 of the assessment order. However, the declared turnover was Rs.7.09 Lacs only. The assessee failed to file any supportive documents but submitted that the cash was received from his father as well as from certain other persons. Since there were deposits as well as withdrawals, Ld. AO considered peak credit and made impugned addition of Rs.24.62 Lacs.

The Ld. CIT(A) confirmed the action of Ld. AO on the ground that the assessee has not raised any specific objection to the same. Still aggrieved, the assessee is in further appeal before us.

We find that the assessee has failed miserably to substantiate the source of cash deposits. However, keeping in mind the principles 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 reasonable 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 assessment on the basis of material on record.

The appeal stand allowed for statistical purposes. Order pronounced on 6th May, 2024 Sd/- Sd/- (S. S. VISWANETHRA RAVI) (MANOJ KUMAR AGGARWAL) �ाियक सद! / JUDICIAL MEMBER लेखा सद! / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :06-05-2024 DS आदेशकीSितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF