CHEDI SONKAR,MEDINIPUR V. I.T.O., WARD - 39(1), MIDNAPUR, MEDINIPUR

ITA 1314/KOL/2024

AI Insights

The case involves Chedi Sonkar, a Kachcha Arahtia of fruits, who did not file his income tax return for the assessment year 2018-19. Subsequently, his case was reopened under section 148 of the Income Tax Act, leading to additions of unexplained cash credit and unexplained investment. The assessee's appeal to the CIT(A) was dismissed due to non-prosecution. The Tribunal noted the procedural lapses in not providing the illiterate assessee, who was unfamiliar with computer systems, a fair opportunity to present his case. The Tribunal's decision to remit the case back to the AO was based on the principles of natural justice, aiming to provide the assessee a chance to substantiate his claims with the documentary evidence he possessed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35955 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Set aside; Unexplained cash credit; Unexplained investment
• Section: 148; 69

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “बी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH: KOLKATA Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय एवं Įी संजय अवèथी, लेखा सटèय क े सम¢ [Before Shri Pradip Kumar Choubey,Judicial Member & Shri Sanjay Awasthi,Accountant Member] I.T.A. No. 1314/Kol/2024 Assessment Year: 2018-19 Chedi Sonkar (PAN: DEYPS 1532 C) Vs. ITO, Ward-39(1), Midnapur Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 03.02.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 25.02.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Soumitra Choudhury, Advocate Shri P Sarkar, Advocate For the revenue / राजèव कȧ ओर से Shri Loviesh Shelley, Addl. CIT Sr. D.R ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 16.09.2023 for AY 2018-19. 2 I.T.A. No. 1314/Kol/2024 Assessment Year: 2018-19 Chedi Sonkar 2. At the outset, the Ld. Counsel for the assessee submitted that there is a delay of 210 days in filing the appeal, and the assessee has filed a condonation petition by explaining the cause of delay. We have gone through the petition of condonation and find that the assessee has taken ground that the assessee is an illiterate person having no knowledge about the computer system, when in the first week of December department started pressing to pay the demand, then on enquiry about the passing of appeal. His submission is that delay was not intentional rather Bonafide. The Ld. D.R did not raise any objection in condoning the delay. On perusal of the above condonation petition, we condone the delay and admit the appeal for adjudication. 3. Brief facts of the case of the assessee is that the assessee is a Kachcha Arahtia of fruits, and earns commission income, and assessee did not file his return of income for AY 2018-19. The case was reopened by issuing notice u/s 148 of the Act. The assessee did not give any reply before the AO, as a result of which, the addition of Rs. 1,44,35,100/- on account of unexplained cash credit and Rs. 49,34,910/- on account of unexplained investment u/s 69 of the Act was made. 4. Aggrieved by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed for want of prosecution. Being aggrieved and dissatisfied, the assessee preferred an appeal before us. 5. The Ld. Counsel for the assessee by filing paper books has submitted that the assessee should have given an opportunity to place his case before the AO as the order passed by the AO as well as the Ld. CIT(A) are an ex-parte order. The Ld. Counsel submits that the assessee is an illiterate person and he was completely unaware with the computer system and that’s why he could not comply the statutory notices. The Ld. Counsel submits that the assessee has sufficient documentary evidences to substantiate his case. Hence, for the interest of justice an opportunity should be given to him place his case before the AO. 6. The Ld. D.R supports the impugned order. 3 I.T.A. No. 1314/Kol/2024 Assessment Year: 2018-19 Chedi Sonkar 7. Upon hearing the submission of the Counsels of the respective parties, we have perused the order of Ld. CIT(A) and AO and there is no dispute that the order passed by the AO in absence of assessee. Order of both lower authorities clearly reveals that that the assessee did neither appear before the A.O. nor submit any response before the Ld. CIT(A). The prayer of the ld. Counsel of the assessee is that the assessee has to be given an opportunity to place his case before the AO. He has filed a paper book that includes balance sheet, profit and loss account, trade license and statement of account of State Bank of India for the period of 01.04.2017 to 31.03.2018. 8. Going over the order passed by the Ld. CIT(A) and AO, and for the interest of justice we are inclined to afford an opportunity to the assessee to place his case before the AO. Accordingly, the appeal of the assessee is hereby restored in the case file of AO. The Order passed by the AO and Ld. CIT(A) are hereby set aside. The case is remitted back to the file of AO for fresh adjudication. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 25th February, 2025 Sd/- Sd/- (Sanjay Awasthi/संजय अवèथी) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 25th February, 2025 SM, Sr. PS 4 I.T.A. No. 1314/Kol/2024 Assessment Year: 2018-19 Chedi Sonkar Copy of the order forwarded to: 1. Appellant- Chedi Sonkar, Shop No. KSC/6/5, Fruit Market, Gole Bazar, Kharagpur, Paschim Medinipur-721301. 2. Respondent – ITO, Ward-39(1), Midnapur 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "