K. Adirajan Vs ITO (ITAT Chennai)
In the case of K. Adirajan vs. ITO, the Income Tax Appellate Tribunal (ITAT) Chennai set aside an ex-parte order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2017–18. The case involved an addition of ₹33 lakh under Section 69 of the Income Tax Act, 1961, which pertained to unexplained cash deposits in the assessee’s bank account. The assessee claimed the deposits were sourced from his wife and daughters, along with his own savings. However, the Assessing Officer (AO) rejected this explanation, citing insufficient income evidence for his family members.
The CIT(A) dismissed the appeal without addressing the case on its merits, citing the assessee’s failure to participate in the proceedings. ITAT noted that this violated Section 250(6) of the Income Tax Act, which requires a reasoned order with adjudication on the merits. Emphasizing principles of natural justice, ITAT remanded the case to CIT(A) for fresh adjudication, directing the assessee to attend the hearings. The tribunal clarified that its decision was limited to statistical purposes, providing the assessee another opportunity to substantiate his claims.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.06.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 143(3) of the Income-tax Act,1961 (hereinafter “the Act”) on 14.12.2019.
