ABHISHEK AGRAWAL,GWALIOR V. INCOME TAX OFFICER, WARD 2(3), GWALIOR, GWALIOR

ITA 305/AGR/2025

AI Insights

The case involves Abhishek Agrawal, who appealed against the order of the National Faceless Appeal Centre, Delhi/Ld. CIT(A), concerning the Assessment Year 2017-18. The primary issue was the unexplained cash deposits amounting to Rs.73,52,180 during the demonetization period, which the Assessing Officer added under section 69A read with section 115BBE of the Income Tax Act, 1961. The CIT(A) dismissed the appeal ex-parte due to non-submission of details by the assessee, despite multiple notices. The Tribunal found that the assessee was prevented by sufficient cause from appearing before the CIT(A) and thus decided to set aside the CIT(A)'s order and remand the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714261 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: ASHOK VIJAYWARGIA
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘DB’ AGRA (Through Physical/Virtual Hearing) BEFORE SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.305/Agr/2025 [Assessment Year: 2017-18] Abhishek Agrawal, 110, Ashiyana Apartment, Moti Palace, Gwalior, Madhya Pradesh-474001 Vs Income Tax Officer, Ward-2(3), Aayakar Bhawan, City Centre, Gwalior, Mahdhya Pradesh-474011 PAN-BMYPA9882R Appellant Respondent Appellant by Shri Ashok Vijaywargia, CA Respondent by Shri Anil Kumar Sr. DR Date of Hearing 17.07.2025 Date of Pronouncement 06.08.2025 ORDER, PER BRAJESH KUMAR SINGH, AM, This appeal filed by the assessee is directed against an order dated 20.02.2025 of the National Faceless Appeal Centre, Delhi/Ld. CIT(A), relating to Assessment Year 2017-18 arising out of order u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 24.12.2019. 2. Brief facts of the case:- This case was selected for complete scrutiny for the reasons “cash deposits during the year”. The Assessing Officer noted that the assessee had deposited a sum of Rs.1,25,50,000/- during the demonetization period. The assessee explained that the source of the cash deposits made by the Printed from counselvise.com 2 ITA No.305/Agr/2025 assessee during the demonetization period was regular funds from trading in jewellery and accumulated funds. The Assessing Officer did not accept the entire explanation of the assessee and accepted a sum of Rs.37,07,920/- as cash from sales and treated the balance amount of Rs.73,52,180/- as unexplained and added it u/s 69A r.w.s. 115BBE of the Act. 3. Aggrieved with the said order, the assessee preferred an appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee ex-parte as according to him the notices u/s 250 of the Act issued for hearing of the appeal was served upon the assessee on 17.02.2021, 05.02.2024 and 04.02.2025 but no details were submitted by the assessee. Thereafter, the ld. CIT(A) discussed the matter on merits and dismissed the appeal of the assessee. 4. Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before us. 5. During the hearing before us, it was submitted by the Ld. AR as stated in grounds of appeal no.1 of the appeal that the Ld. CITA) erred in deciding the appeal ex-parte for which no message of notice was received. Thus, it is seen that the assessee could not appear before the Ld. CIT(A) and the ld.AR requested that one more opportunity may be given to the assessee to explain the facts before the ld. CIT(A). 6. The ld. DR supported the orders of the authorities below. 7. We have heard both the parties and perused the material available on record. On perusal of the reasons given by the assessee for non-appearance Printed from counselvise.com 3 ITA No.305/Agr/2025 before the Ld. CIT(A), we are satisfied that the assessee was prevented by sufficient cause for non-appearance before the Ld. CIT(A). We, therefore, in the interest of justice, set-aside the order of the Ld. CIT(A) and restore the matter to his file for deciding this issue afresh after giving a reasonable opportunity of being heard. Further, the assessee is also directed to appear before the Ld. CIT(A) during the course of hearing. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 06th August, 2025. Sd/- Sd/- [SUNIL KUMAR SINGH] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 06.08.2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "