Speculation Income Addition and Unexplained Income Addition of ₹68.45 Lakh: ITAT Remits Matter for Fresh Adjudication on Taxpayer's Affidavit [Read Order]
Observing that the taxpayer had failed to participate in the previous appellate proceedings but had now furnished an affidavit undertaking full cooperation and timely submission of documents, the Tribunal deemed it proper to grant a final opportunity for fresh adjudication
Income Addition
Income Addition
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has remitted the assessment to the file of the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration for the case involved significant additions totaling approximately ₹68.45 Lakh for the Assessment Year (AY) 2011-12.
Muthiah Lakshmanan (assessee) for whom the case originated when the Assessing Officer (AO) reopened the assessment and, in the absence of any Return of Income or compliance from the assessee, completed the assessment ex parte under Section 144 of the Income Tax Act, 1961, dated 27.12.2018.
The AO made two primary additions estimated speculation income at 0.25% of the total commodity exchange transaction value (reported via NMS data) amounting to ₹307.03 Crores and sum of ₹38,88,500 was added to the assessee’s total income under Section 69A as unexplained investment corresponding to cash deposits.
The total demand raised was ₹68,45,990. Aggrieved by the AO’s order, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal on 19.11.2024. Aggrieved by the dismissal, the assessee filed an appeal before the ITAT.
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The counsel for the assessee admitted the lack of compliance before the lower authorities and prayed for the matter to be remanded. The assessee placed on record a sworn affidavit dated 17.09.2025.
The assessee undertook to cooperate fully with the appellate proceedings and assured the Tribunal that he would not seek unnecessary adjournments and would make all relevant documents and explanations available for expeditious disposal. The assessee also reserved his right to question the validity of the reopening of the assessment.
The two-member bench, comprising S.S. Viswanethra Ravi (Judicial Member) and Ratnesh Nandan Sahay (Accountant Member), after considering the submissions and the undertaking in the affidavit, noted that the AY 2011-12 was an old assessment year.
The Bench deemed it proper to remand the matter for fresh adjudication on merits, subject to the condition that the assessee must strictly adhere to the commitments made in the affidavit.
The Tribunal directed the CIT(A) to decide the issues on merit in accordance with the law. In the result, the appeal filed by the assessee was allowed for statistical purposes.
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