Case Law Details
Arunachalam Vijayakumar Vs ITO (ITAT Chennai)
Introduction: The recent verdict given by the ITAT Chennai in the case of Arunachalam Vijayakumar Vs ITO has brought to light significant issues related to the violation of natural justice principles in tax proceedings. This appeal revolved around the non-issuance of a notice to the assessee, preventing him from presenting his side and thus violating principles of natural justice.
Assessment Background: The case stems from Arunachalam not filing an income return for the fiscal year 2017-18. An observation was made, based on information from the Statement of Financial Transactions (SFT), about cash deposits amounting to ₹.34,76,000/- made by Arunachalam during the demonetization phase in an Axis Bank branch. Given the lack of explanation from the assessee, the assessment was completed, treating this sum as an unexplained investment.
Appeal and Delay: A significant delay of 233 days occurred in filing an appeal before the Tribunal by Arunachalam. While the reasons for the delay were documented through an affidavit, the tribunal, taking note of the cause, decided to condone the delay, admitting the appeal for further proceedings.
The Absence of Communication: The central issue was the lack of communication or any notice sent to Arunachalam. The CIT(A) dismissed the assessee’s appeal due to the lack of response from him. However, it was emphasized that not even a single notice was responded to. The main contention presented by the assessee’s counsel was the absence of any notice sent to the registered e-mail ID as per the PAN database, which violates the principles of natural justice.
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