AVINASH AWHAD LEGAL HEIR OF EKNATH SHIVRAM ,MUMBAI V. INCOME TAX OFFICER 28(1)(1), MUMBAI

ITA 1063/MUM/2025

AI Insights

The case involves Avinash Awhad, the legal heir of Eknath Awhad, who appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, which confirmed the addition of Rs. 16,00,000 as unexplained income under section 69A of the Income Tax Act, 1961. The addition was based on alleged cash deposits in the appellant's bank account during the financial year 2010-2011. The appellant contended that no such deposits were made and provided a bank statement showing only a deposit of Rs. 3 lakhs. The CIT(A) had dismissed the appeal both on procedural grounds, due to non-response to notices, and on merits, for lack of explanation regarding the source of the deposits. The ITAT found that the appellant had not submitted necessary documents before the CIT(A) and thus remitted the matter back for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 112154 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Other Referred Cases: Multiplan India Ltd. 38 ITD 320 (Del)
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR SINHA
• Assessee Lawyers: SHALIN S. DIVATIA
• Keywords: Condonation of delay; Recovery proceedings
• Section: 148; 69A; 2

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “SMC” Bench, Mumbai. Before Shri Narender Kumar Choudhry (JM) & Shri Omkareshwar Chidara (AM) ITA No. 1063/MUM/2025 (Assessment Year : 2011-12) Avinash Awhad (Legal Heir of Eknath Awhad) 102/Kukreja Crystal, Plot No. 79A, Sector 14, Koparkhairane Navi Mumbai- 400 709 Vs. ITO Ward 28(1)(4) Vashi Railway Station Building Vashi, Navi Mumbai 400709. PAN : AGAPA3822C Appellant Respondent Assessee by : Shri Shalin S. Divatia Revenue by : Shri Manoj Kumar Sinha Date of Hearing : 08/04/2025 Date of pronouncement : 17/04/2025 O R D E R Per Omkareshwar Chidara (AM) :- In this above captioned appeal, it is observed that there is a delay of almost two years in filing the appeal before the ITAT. The reason for filing the appeal with delay, it was stated that the appellant, as a legal heir does not know the facts of the case. Moreover, in the application for condonation of delay, it was stated by the legal heir that he has not received the copy of Ld. CIT(A)’s order and it has come to his notice only when the Department started recovery proceedings of the tax dues as per assessment order. In view of the same, the appellant prayed for condonation of delay and requested the Bench to proceed the case on merits. After going through the application for condonation of delay and the prayer of Ld. AR of the appellant, the Bench has decided to condone the delay. 2. Coming to the merits of the case, the appellant filed an appeal with the following grounds of appeal :- 1) The learned National Faceless Appeal Centre (NFAC), Delhi has an erred in confirming the addition of Rs. 16,00,0007- as unexplained income Avinash Awhad (Legal Heir of Eknath Awhad) 2 under section 69A of the Income Tax Act 1961 on account of Cash deposited of Rs. 16,00,0007- in Saving bank account. 2) The learned National Faceless Appeal Centre (NFAC), Delhi failed to appreciate the fact that there was no such cash deposit of the said amount of Rs. 16,00,0007- in the bank account of the appellant in the financial year 2010-2011. 3) The learned National Faceless Appeal Centre (NFAC), Delhi failed to make any inquiry in respect of cash deposit from the bank branch and confirmed the addition without any basis. 4) The appellant prays that the additions made of Rs. 16,00,0007- to the income of the appellant in respect of cash deposit in the bank account be deleted as no such deposits have been made by the appellant in his bank account. 3. From the order of Ld. CIT(A), it is observed that five notices were sent to the appellant to explain his case and there is no response to the notices. Hence, Ld. CIT(A) relied on the decision of Multiplan India Ltd. 38 ITD 320 (Del) and dismissed the appeal of the appellant. Apart from this, the Ld. CIT(A) has dismissed the case on merits too by stating that the appellant did not explain the sources of cash deposits of Rs. 16 lakhs in his savings bank account. The appellant did not even file a Return of Income in pursuance of notice issued by the department under section 148 of the I.T. Act. So, finally the Ld. CIT(A) confirmed the addition made by the Ld. AO and dismiss the appeal of the appellant. 4. Aggrieved by the dismissal order of Ld. CIT(A), an appeal was filed before the ITAT with the grounds of appeal mentioned in page No. 1 and 2 of this order. 5. During the appeal proceedings before the ITAT, Ld. AR of the appellant has argued that they have not deposited cash of Rs. 16 lakhs as alleged by the Department. A copy of bank statement of Bank of Maharashtra was filed before the ITAT by the Ld. AR which shows that there is a deposit of Rs. 3 lakhs only and hence, it was argued that the notices given by the Department were factually incorrect. Avinash Awhad (Legal Heir of Eknath Awhad) 3 6. The Ld. DR relied on the orders of lower authorities. 7. After hearing both sides, it is decided to remit the issue back to the file of Ld. CIT(A) as the appellant has not filed any of these documents before the first appellate authority. The appellant is directed to file all necessary documents before the Ld. CIT(A) to establish his case and the Ld. CIT(A) is directed to pass a speaking order on merits after giving an effective opportunity to the appellant. 8. The appellant of appellant is allowed for statistical purposes. Order pronounced in the open Court on 17/04/2025. Sd/- Sd/- (NARENDER KUMAR CHOUDHRY) (OMKARESHWAR CHIDARA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 17/04/2025 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. BY ORDER, //True Copy// (Assistant Registrar) ITAT, Mumbai PS "