ANIL DINKAR PATIL,BHUSAWAL V. INCOME TAX OFFICER WARD 2(1) JALGAON, JALGAON

ITA 474/PUN/2025

AI Insights

The case involves Anil Dinkar Patil, the proprietor of Anil Book Depot, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of Rs 9,00,000 under section 69A of the Income Tax Act, 1961, due to unexplained cash deposits during the demonetization period. The Assessing Officer had initially passed an ex-parte order under section 144 of the Act due to non-compliance by the assessee's tax practitioner. The Tribunal noted the assessee's personal circumstances, including the critical illness of his mentally retarded son, which contributed to his inability to comply with procedural requirements. The Tribunal admitted additional evidence presented by the assessee and directed a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47101 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRASHANT B. GANDHALE
• Assessee Lawyers: R.SHIRUDE; ANIL
• Keywords: Business income; Additional evidence
• Section: 144; 250; 69A

Judgement Text

" आयकर अपीलीय अिधकरण ”एस एम सी” Ɋायपीठ पुणेमŐ। IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC” :: PUNE BEFORE DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.474/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year: 2017-18 Anil Dinkar Patil, Anil Book Depot, Near New Satara Bridge, Bhusawal, Maharashtra – 425201. V s The Income Tax Officer, Ward-2(1), Jalgaon. PAN: AQHPP5953C Appellant/ Assessee Respondent / Revenue Assessee by Shri R.Shirude -AR & Shri Anil Patil(Assessee) Revenue by Shri Prashant B. Gandhale –JCIT(DR) Date of hearing 08/04/2025 Date of pronouncement 09/04/2025 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This appeal filed by the assessee is against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], passed under section 250 of the Income Tax Act, 1961, dated 12.12.2024 for Assessment Year 2017-18. The assessee has raised the following grounds of appeal : “1) In the facts, circumstances & position of law, learned CIT(A), NFAC erred in confirming the order of Assessing Officer and passing ex-parte order. ITA No.474/PUN/2025 [A] 2 2) In the facts, circumstances & position of law, learned CIT(A), NFAC erred in confirming the addition of Rs 9,00,000/- u/s 69A on account of cash deposits during demonetization period. 3) In the facts, circumstances & position of law, learned Assessing Officer erred in estimating gross profit at Rs.9,04,752/- by treating cash deposit of Rs.1,13,09,410/- as sales @8% of cash deposit of Rs.1,13,09,410/-, 4) In the facts, circumstances & position of law, learned CIT(A), NIAC erred in treating the cash deposits during demonetization period as unexplained within the meaning of section 69A & at the same time cash deposits prior to & subsequent to demonetization period treated as business receipts & thereby erred in confirming charging of tax as per provisions of section 115BBE of L.T. Act, 1961. 5) Appellant craves leave to add, alter, amend or substitute to the above grounds of appeal before or at the time of hearing of the appeal.” Brief facts of the case : 2. In this case, Assessing Officer passed an order under section 144 of the Act, for A.Y.2017-18 as Assessee failed to submit the details. Assessee filed an appeal before the ld.CIT(A). Ld.CIT(A) confirmed the addition as no details were filed by assessee. Aggrieved by the same, Assessee has filed appeal before this Tribunal. Submission of ld.AR : 3. The ld.AR submitted that assessee Mr.Anil Dinkar Patil is also present for the hearing. Mr.Anil Dinkar Patil submitted that he runs a book shop selling school books. Mr.Anil Dinkar Patil further ITA No.474/PUN/2025 [A] 3 submitted that he does not understand anything about Income Tax. He had entrusted the work to Chartered Accountant Ms.Seema Prashant Agrawal, Prop. of Agrawal & Associates of Bhusawal. However, the Tax Practitioner failed to comply the notices. The Tax Practitioner provided some email id of her employee. Therefore, no notice was received by him directly. Mr.Anil Dinkar Patil submitted that during this period his mentally retarded son was critically ill. Therefore, he could not follow up with Chartered Accountant. Mr.Anil Dinkar Patil explained that he regularly maintained books of accounts and earned some meager profit. Mr.Anil Dinkar Patil requested that one more opportunity may kindly be provided, so that he will explain all the facts to the Assessing Officer. Mr.Anil Dinkar Patil invited our attention to the Medical Certificate issued by Civil Surgeon which is in the paper book at page no.72. Ld.AR submitted a paper book and he admitted that it is additional evidence. Ld.AR pleaded for admission of additional evidence. Ld.AR further submitted that the paper book contains copies of cash book, cash flow statement, copies of bills to demonstrate the business carried by assessee, copy of Audit Report. Ld.AR submitted that these documents are absolutely essential to decide the case of the assessee. ITA No.474/PUN/2025 [A] 4 Submission of ld.DR : 4. The ld.DR relied on the order of the Assessing Officer and ld.CIT(A). Findings & Analysis : 5. We have heard both the parties and perused the records. It is a fact that Assessee could not file replies to the notices issued by AO/ld.CIT(A). However, after hearing Mr.Anil Dinkar Patil, we are convinced that there is valid and sufficient reason for non- compliance. In these facts and circumstances of the case, we set- aside the assessment order to the Assessing Officer for denovo adjudication. The Assessing Officer shall provide opportunity to the assessee. The assessee shall file all the necessary details, documents before the Assessing Officer. We admit the additional evidence filed by the assessee, but since we are setting aside the assessment order for denovo adjudication, we direct the Assessee to file all these details before the Assessing Officer. The Assessing Officer shall consider all the documents, details filed by the assessee before passing the assessment order. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. ITA No.474/PUN/2025 [A] 5 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 9th April, 2025. Sd/- Sd/- (VINAY BHAMORE) (DIPAK P.RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 9th April, 2025/ SGR आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, “एस एम सी” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune. "