Muthiah Lakshmanan Vs ITO (ITAT Chennai)
In Muthiah Lakshmanan vs. ITO (ITA No.3016/Chny/2025, AY 2022-23), the Chennai ITAT “D” Bench set aside the order of the NFAC CIT(A) and remanded the matter to the AO for fresh adjudication, granting the Assessee one more opportunity to substantiate his claims with documentary evidence.
The Assessee, an individual engaged in equity trading through ICICI Direct, Zerodha and Kotak Securities, had declared STCG of only ₹42,171 on huge share transactions. Due to non-compliance with notices, the AO completed assessment u/s 144 r.w.s. 144B and made drastic additions—treating ₹35.11 crore as unexplained investment u/s 69 and ₹3.22 crore as STCG, determining total income at ₹38.34 crore. The CIT(A), despite granting multiple opportunities, partly sustained the additions.
Before the Tribunal, the Assessee contended that relevant documents and detailed submissions were ignored, and sought admission of additional evidence. Considering the facts and in the interest of justice, the ITAT held that the issues required proper verification at the assessment stage. Accordingly, it set aside the CIT(A)’s order and restored the matter to the AO with directions to frame the assessment de novo, after considering additional grounds/evidence and granting reasonable opportunity to the Assessee, while cautioning the Assessee to diligently cooperate.
The appeal was thus allowed for statistical purposes, without expressing any view on merits.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
