ANIL KUMAR SAXSENA,DELHI V. THE ACIT CIRCLE, SAWAI, SAWAI

ITA 924/JPR/2024

AI Insights

The case involves an appeal by Sh. Anil Kumar Saxena against the order of the CIT(A) which confirmed the addition of Rs. 1,50,000 to the appellant's income under section 68 read with section 115BBE of the Income Tax Act, 1961. This addition was made by the Assistant Commissioner of Income Tax, Sawai Madhopur, following a scrutiny under CASS, due to unexplained cash deposits during the demonetization period. The appellant contended that the CIT(A) erred in law and on facts by confirming the addition without proper opportunity for the appellant to be heard, thus violating the principles of natural justice. The Tribunal noted the absence of the appellant's representation during the hearing and decided to remand the case back to the CIT(A) for a fresh examination, ensuring the appellant's right to a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31822 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 01-07-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES, “SMC” JAIPUR BEFORE SH. SANDEP GOSAIN, JUDICIAL MEMBER AND DR. M. L. MEENA, ACCOUNTANT MEMBER I.T.A. No. 924/JPR/2024 Assessment Year: 2017-18 Sh. Anil Kumar Saxena, B-131, Anand Vihar, Delhi, 110092 [PAN: AOYPS 0244L] (Appellant Vs. The ACIT Circle, Sawai (Respondent) Appellant by Respondent by : : None Sh. Gautam Singh Choudhary, JCIT Date of Hearing Date of Pronouncement : : 30.09.2024 10.10.2024 ORDER Per Dr. M. L. Meena, AM: The captioned appeal has been filed by the assessee against the order dated of the ld. CIT, Appeal/ADDL/JCIT(A)-5, Delhi (hereinafter referred to as “the JCIT(A)” dated 30.05.2024 which is arising out of the Assessment Order dated 25.12.2019 passed u/s 143(3) of the Income Tax 2 ITA No. 924/JPR/2024 Anil Kumar Saxena v. ACIT Act (in short “the Act”) by the Assistant Commissioner of Income Tax, Circle, Sawai Madhopur (in short “The AO”) in respect of Assessment Year: 2017-18. 2. The appellant-assessee has raised the following grounds of appeal: “1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts that order passed by the A.O. is in bad in law and against the cannon of taxation. 2. That having regards to facts and circumstances of the case the Ld. AO has erred in law and facts by making addition of Rs. 1,50,000/- u/s 68 read 115BBE of the Income Tax Act, 1961. Although we have furnished proper detail in our submission before Ld. AO that assessee has deposited Rs. 1,50,000/- cash out of his past savings and income as assessee has started his new business in F.Y. 2015-16. As this is very small amount addition made by A.O. by ignoring the assessee submission does not hold good keeping in mind the assessee is regular income tax payer since ITR filed from A.Y. 2007-08 and filed the return for A.Y. 2016-17 at Rs. 7,50,000/-. 3. The CIT(A) has erred on law and on facts in confirming the additions made by A.O. of Rs. 1,50,000/- u/s 68 read with section 115BBE without giving proper opportunity of being heard and to adduce evidence and therefore the additions have been made against the principles of natural justice as per law. 4. The appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the grounds are without prejudice to each other.” 3. On the date of hearing, none appeared on behalf of the assessee nor any adjournment application has been filed. Although, the appeal has been acknowledged and notice of hearing have been served on the appellant assessee at the email address given in the Memorandum of Appeal. Under 3 ITA No. 924/JPR/2024 Anil Kumar Saxena v. ACIT the circumstances, it was decided to hear the ld. DR and adjudicate the appeal based on the material available on record. 4. A proposed ground no. 3, the ld. AR for the appellant has challenged the decision of the ld. CIT(A) in confirming the addition made by the AO of Rs.1,50,000/- u/s 68 r.w.s. 115BBE without giving proper opportunity of being heard and to adduce evidence and thus, the additions have been confirmed against the principles of natural justice. 5. The appellant-assessee’s case was selected for scrutiny under CASS. The AO has made an addition of Rs.1,50,000/- u/s 68 r.w.s. 115BBE of the Income Tax Act on account of unexplained cash deposit during the demonetization period. 6. The ld. CIT(A) while rejecting the contention of the appellant, has categorically mentioned in the impugned order that the appellant-assessee failed to furnish any documentary evidences before him during the appellate proceedings to substantiate its claim regarding the source of cash deposit in the Bank A/c. The ld. CIT(A) has further stated that the merely making a statement that the source being personal saving cannot be seen as a satisfactory explanation to substantiate cash deposit in absence of documentary evidences being furnished. 4 ITA No. 924/JPR/2024 Anil Kumar Saxena v. ACIT 7. The appellant assessee in the grounds of appeal has stated that he has furnished the proper details before the AO that the assessee has deposited at Rs.4,50,000/- cash out of his past saving income as assessee has started his new business in financial year 2015-16. However, he has failed to produce any documentary evidences either before the ld. CIT(A) or before us to substantiate the source of cash deposit of Rs. 1,50,000/- in its Bank A/c during the demonetization period. Taking a liberal view, the appellant assessee may be granted adequate opportunity of being heard by the ld. CIT(A) to furnish explanation regarding the source of the disputed cash deposit of Rs.1,50,000/- made in its Bank A/c during the demonetization period. Accordingly, we consider it deem fit to restore back the matter to the file of the ld. CIT(A) to adjudicate the matter afresh after granting proper opportunity of being heard in view of the principles of natural justice and adjudicate the matter after considering the material evidence if any furnished by the appellant during the course of hearing before the ld. CIT(A). Thus, the matter is remanded back to the file of the ld. CIT(A) to adjudicate the appeal de-novo as per law. 8. Before parting with, we make it clear that the Bench has not expressed any opinion on the merits of the case, therefore, the ld. CIT(A) 5 ITA No. 924/JPR/2024 Anil Kumar Saxena v. ACIT shall be at liberty to adjudicate its appeal de-novo in accordance with the provisions of law. 9. In view of the above, the order of the ld. CIT(A) is set aside, the matter is remanded back to the file of the ld. CIT(A). 10. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 10.10.2024 Sd/- Sd/- (Sandeep Gosain) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The ld. CIT (4) The ld. CIT(A) (5) The DR, I.T.A.T., Jaipur (6) Guard File By Order, Asstt. Registrar 6 ITA No. 924/JPR/2024 Anil Kumar Saxena v. ACIT Date Initial 1. Draft dictated on 30.09.24 Sr.PS/PS 2. Draft placed before author 30.09.24 Sr.PS/PS 3. Draft proposed & placed before the Second Member JM/AM 4. Draft discussed/approved by Second Member JM/AM 5. Approved Draft comes to the Sr. P.S./P.S. Sr.PS/PS 6. Kept for pronouncement on Sr.PS/PS 7. File sent to the Bench Clerk Sr.PS/PS 8. Date on which file goes to the Head Clerk 9. Date on which file goes to the AR 10. Date of dispatch of Order "