ATLURI PAVAN KUMAR,VIJAYAWADA V. INCOME TAX OFFICER, WARD-1(1), VIJAYAWADA

ITA 466/VIZ/2024

AI Insights

The case involves Atluri Pavan Kumar, the appellant, who appealed against the order of the Learned Commissioner of Income Tax (Appeals), which upheld the addition of Rs. 7,11,500 as unexplained money deposited during the demonetization period. The appellant argued that the nature of his business involved collecting and remitting taxes and fees on behalf of the Government, which included accepting Specified Bank Notes (SBNs) during the demonetization period. The Tribunal noted the absence of a cash book, which was crucial for verifying the SBNs, and thus remitted the case back to the AO for further examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46549 (ITAT-VISAKHAPATNAM)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• 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
• Keywords: Additional evidence; Principle of natural justice
• Section: 143(3); 142(1); 250

Judgement Text

"आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM (HYBRID HEARING) श्री लधलत क ुमार, न्याधयक सदस्य एिं श्री एस बालाक ृष्णन, लेखा सदस्य क े समक्ष BEFORE SHRI LALIET KUMAR, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.466/VIZ/2024 (निर्धारण वर्ा/ Assessment Year: 2017-18) Atluri Pavan Kumar C/O. CA M.V. Prasad D.No. 60-7-13, Ground Floor Siddhartha Nagar, 4th Lane Vijayawada – 520010- Andhra Pradesh [PAN: AISPA7609M] v. Income Tax Officer – Ward – 1(1) C.R. Buildings, 1st Floor Annex M.G. Road, Vijayawada – 520002 Andhra Pradesh (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented by : Shri M.V. Prasad, AR राजस्व का प्रतततितित्व/ Department Represented by : K. Sandhya Rani, Sr.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 20.01.2025 घोर्णध की तधरीख/Date of Pronouncement : 22.01.2025 आदेश /O R D E R PER SHRI LALIET KUMAR, JUDICIAL MEMBER: 1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal centre, Delhi [hereinafter in I.T.A.No.466/VIZ/2024 Atluri Pavan Kumar Page No. 2 short “Ld.CIT(A)”] vide DIN & Order No. ITBA/APL/s/250/2024- 25/1068873752(1) dated 19.09.2024 for the A.Y.2017-18 arising out of order passed under section 143(3) of the Income Tax Act, 1961 (in short ‘Act’) dated 20.11.2019. 2. Brief facts of the case are that, assessee is an individual filed his return of income for the A.Y. 2017-18 on 27.02.201 admitting total income of Rs.3,91,810/-. he return was selected for limited scrutiny through CASS on the issue of \"cash deposits during the year”. Subsequently, notice under section 143(2) dated 23.8.2018 was issued and served on the assessee. In response, assessee furnished the copy of certification dated 03.10.2017 issued by the Labour Department, Government of AP. Further, notice under section 142(1) of the Act was issued calling for information. As assessee failed to comply with the notice, Ld. AO issued penalty notice under section 272A(1)(d) of the Act. In response assessee filed its reply vide letter dated 18.08.2019 and failed to upload bank account statements as called for. Thereafter, Ld. AO proceeded to complete the assessment and observed that in the absence of cash book, it is not possible to find out the SBNs available as on 09.11.2016 and treated balance of Rs.7,11,500/- as unexplained money deposited in the guise of receipts, and determined the income of the assessee at Rs. 11,02,310/-. 3. Aggrieved by the order of the Ld. AO, assessee filed an appeal before the Ld. CIT(A). Before Ld. CIT(A) assessee made written submissions by providing I.T.A.No.466/VIZ/2024 Atluri Pavan Kumar Page No. 3 additional evidences. After considering the additional evidences as specified under Rule 46A(1) of I.T. Rules, Ld. CIT(A) sought remand report from Ld. AO. Ld. AO submitted its Remand Report on 28.06.2024. After considering the Remand Report and the submissions of the assessee, Ld. CIT(A) dismissed the appeal of the assessee for non-submission of cash book. 4. Being aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising following grounds of appeal: - “1. The learned CIT (Appeals) is erred in facts and law while passing the order. 1. The Learned CIT(Appeals) is not justified in upholding the addition made of Rs. 7,11,500/- made by the Assessing Officer. 2. The Learned CIT(Appeals) ought to have considered the fact that the very nature of the business of the appellant is to run a Online Service to collect the taxes, fee, tickets etc., on behalf of the Government of Andhra Pradesh and to remit the same to the Government on commission basis and therefore, would have allowed the appeal and deleted the addition made. 3. The Learned CIT(A) officer ought to have considered the fact that the appellant is depositing the Specified Bank Notes as and when received from the customers during the course of business operations and as an agent to the Government, the appellant is permitted to accept the SBNs during such period of demonitization. 4. Any other legal and factual ground that may be urged at the time of hearing of the Appeal.” 5. At the time of hearing, Ld. Authorised Representative [hereinafter “Ld.AR”] pleaded that in the interest of natural justice, assessee may be given one more opportunity to furnish the cash book and other additional evidences. I.T.A.No.466/VIZ/2024 Atluri Pavan Kumar Page No. 4 Ld.AR therefore pleaded that the matter may be remitted back to the file of the Ld. AO. 6. Per contra, Ld. Departmental Representative [hereinafter in short “Ld.DR”] relied on the orders of the Revenue Authorities. 7. We have heard both the sides and perused the material available on record. From the Remand Report submitted by the Ld. AO it is noticed by the Ld. AO that assessee has not furnished the cash book and in the absence of cash book it is not possible to verify SBNS available as on 09.11.2016 with the assessee. Again, in response to notice under section 250 of the Act on 16.07.2024 once again assessee failed to submit the cash book before the first Appellate Authority. However, from the pleading of the Ld.AR we find that the cash book shall be submitted before Ld. AO and pleaded that the matter may be remitted back to the file of Ld. AO for fresh consideration of cash book and additional evidences. We are therefore inclined to remit this appeal back to the file of the Ld. AO thereby directing the assessee to furnish the cash book before Ld. AO. We also direct the Ld. AO to examine the additional evidences submitted by the assessee and decide the case on merits in accordance with law by providing reasonable opportunity to the assessee and at the same breath we direct the assessee to cooperate with the proceedings before the Ld. AO without seeking unnecessary adjournments. Thus, the grounds raised by the assessee are allowed for statistical purposes. I.T.A.No.466/VIZ/2024 Atluri Pavan Kumar Page No. 5 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 22nd January, 2025. Sd/- (एस बालाक ृष्णन) (S. BALAKRISHNAN) लेखा सदस्य/ACCOUNTANT MEMBER Sd/- (लललत क ुमार) (LALIET KUMAR) न्याधयक सदस्य/JUDICIAL MEMBER Dated: 22.01.2025 Giridhar, Sr.PS आदेश की प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/ The Assessee : Atluri Pavan Kumar C/O. CA M.V. Prasad D.No. 60-7-13, Ground Floor Siddhartha Nagar, 4th Lane Vijayawada – 520010- Andhra Pradesh 2. रधजस्व/ The Revenue : Income Tax Officer – Ward – 1(1) C.R. Buildings, 1st Floor Annex M.G. Road, Vijayawada – 520002 Andhra Pradesh 3. The Principal Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम /DR,ITAT, Visakhapatnam 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file //True Copy// आदेशधिुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam "