ARCHANA KUMARI SINGH,JAMSHEDPUR V. ITO WARD-1(1), JAMSHEDPUR

ITA 54/RAN/2023

AI Insights

The case involves Archana Kumari Singh, who was found to have a cash deposit of Rs. 2,95,000 in her bank account for which she could not explain the source. The Income Tax Officer (ITO) added this amount as unexplained money under section 69A of the Income Tax Act, 1961, due to the absence of a tax return or satisfactory explanation from the assessee. The Tribunal noted that the assessee did not adequately represent her case at the lower levels and decided to give her one final opportunity to present her case substantively at the level of the Commissioner of Income Tax (Appeals).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32627 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 27-03-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Principle of natural justice
• Section: 250; 69A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI Shri Partha Sarathi Chaudhury, Judicial Member Shri Prabhash Shankar, Accountant Member I.T.A. No. 54/RAN/2023 Assessment Year: 2014-15 Archana Kumari Singh, EWS 13/2, Road No. 10, Adityapur-2, Saraikela, Kharsawan - 831017, Jharkhand [PAN: EKTPS5168A] ............…...…………… Appellant vs. ITO, Ward (1), Jamshedpur .............................. Respondent Appearances by: Assessee represented by : None Department represented by : P.K. Koley, Sr. DR Date of concluding the hearing : 17.10.2024 Date of pronouncing the order : 17.10.2024 ORDER Per Partha Sarathi Chaudhury, Judicial Member: This appeal preferred by the assessee emanates from the order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (in short 'the Ld. CIT(A)\") dated 06.01.2023 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as the \"Act\") for Assessment Year 2014-15 as per the grounds of appeal on record. 2. At the time of hearing, none appeared for the assessee nor any adjournment petition has been filed. The submissions of the Ld. DR are recorded and we have given careful thought to the documents on record and the matter is take as heard on merits. 3. The brief facts are that the assessee is an individual and was found to be in possession of cash deposit of Rs. 2,95,000/- in her bank account for which the assessee has not given any explanation regarding the source of such cash deposit and has also not filed any return of income. However, the I.T.A. No.54/RAN/2023 Archana Kumari Singh 2 assessee had made a submission before the Department that the only source of income is tuition income and that time to time she had deposited the receipts of tuition income in her bank account and by way of accumulation the said amount has emerged. The assessee also tried to justify the non filing of return by submitting that the income for the relevant year was below the taxable limit. That since no explanation was given by the assessee regarding the cash deposit found in her bank account as to the source of such deposit and that since no return of income was filed, the said cash deposits were held as unexplained money in the hands of the assessee and was added u/s 69A of the Act. 4. We have carefully considered the documents on record, analysed the facts and circumstances, perused the orders of the revenue authorities as well as the submission of the assessee on record. Broadly the assessee has not represented her case substantially on merits before the Department. That even in the grounds of appeal before the Tribunal the assessee has stated that the decision taken by the Ld. CIT(A) was on a wrong premise of fact and therefore, should not be upheld. The fact of the matter also is that the assessee did not represent her case substantially either before the AO or before the Ld. CIT(A). The principles of natural justice demands that the one final opportunity should be given to the assessee to justify the source of cash deposit in her bank account. We are of the considered view that the assessee should be given one final opportunity to substantiate the issue on merits at the level of CIT(A) In view thereof, we set aside the order of the Ld. CIT(A) and remand the matter back to his file for denovo adjudication as per law while complying with principles of natural justice and at the time same time, the assessee is directed to comply with the hearing notices and represent her case substantially on merits before the First Appellate Authority. As per the above terms, the grounds of appeal stands allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed for statistical purposes. I.T.A. No.54/RAN/2023 Archana Kumari Singh 3 Order pronounced in the open court on 17.10.2024. Sd/- Sd/- [Prabhash Shankar] [Partha Sarathi Chaudhury] Accountant Member Judicial Member Dated: 17.10.2024. AK, PS (on tour) Copy of the order forwarded to: 1. Archana Kumari Singh 2. ITO, Ward (1), Jamshedpur 3. CIT(A) 4. Pr. CIT 5. CIT(DR) 6. Guard File //True copy// BY ORDER, (Senior Private Secretary) (On Tour), ITAT, Ranchi "