CHHEDI LAL GUPTA,PRATAPGARH V. THE INCOME TAX OFFICER, PRATAPGARH

ITA 144/ALLD/2025

AI Insights

Chhedi Lal Gupta, the appellant, contested the addition of Rs.10,63,000 to his income under section 69A of the Income Tax Act, which was attributed to cash deposits during the demonetization period. The Assessing Officer had initially made this addition, considering it unexplained income. The CIT(A) upheld this addition, leading Gupta to appeal to the Income Tax Appellate Tribunal. The Tribunal found procedural lapses in the lower authorities' handling of the case, particularly noting the ex-parte nature of the assessment and the non-speaking order of the CIT(A). Consequently, the Tribunal remanded the case back to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783810 (ITAT-ALLAHABAD)
• Duration Of Justice: 2 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 11-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.K. SINGH
• Assessee Lawyers: MAHENDRA KUMAR
• Keywords: Condonation of delay; Set aside; Opportunity of being heard

Judgement Text

"I.T.A. No.144/Alld/2025 Assessment Year:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH “SMC”, ALLAHABAD BEFORE SHRI SUBHASH MALGURIA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.144/Alld/2025 Assessment Year:2017-18 Chhedi Lal Gupta, Lacchipur, Raniganj, Pratapgarh-230304 PAN:ACLPG6432H Vs. Income Tax Officer, Pratapgarh. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.144/Alld/2025 has been filed by the assessee for assessment year 2017-2018 against impugned appellate order dated 27/05/2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1076477015(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. In this appeal, the assessee has raised the following grounds: “1. Because the order passed by Ld. CIT(A) is contrary to facts & law and circumstances of the case. Appellant by Shri Mahendra Kumar, C.A. Respondent by Shri A. K. Singh, Sr. D.R. Date of hearing 10/11/2025 Date of pronouncement 10/11/2025 Printed from counselvise.com I.T.A. No.144/Alld/2025 Assessment Year:2017-18 2 2. Because the Ld. CIT(A) has erred in dismissing the Ground of Appeal challenging addition of Rs.10,63,000/- u/s 69A of the Act on account of cash deposits into bank account by the appellant which is part of turnover of the business of the appellant. The cash of Rs.10,63,000/- deposited in the bank account during the demonetization period is liable to be assessed as part of turnover of the brick line business of the appellant and therefore separate addition under section 69A of Rs.10,63,000/- is liable to be deleted.” 2. This appeal has been filed by the assessee beyond time limit prescribed under section 253(3) of IT Act. The assessee has submitted application dated 04/08/2025, duly supported by an affidavit, for condonation of delay in filing of the appeal pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative did not express any objection to assessee’s application for condonation of delay in filing of the appeal. In view of the foregoing, and in specific facts and circumstances of the present appeal before us, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing. 3. The facts of the case, in brief, are that the appellant assessee is an individual and has not filed his return of income for the year under consideration. The Assessing Officer completed the assessment and passed assessment order on 24/12/2019 and determined the total income of the assessee at Rs.15,27,719/- after making addition of Rs.10,63,000/- under section 69A of the Act and Rs.4,64,719/- on account of net profit rate. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A). The learned CIT(A), vide impugned appellate order dated 27/05/2025 has dismissed the appeal of the assessee. Being further aggrieved, the assessee is in appeal before the Income Tax Appellate Printed from counselvise.com I.T.A. No.144/Alld/2025 Assessment Year:2017-18 3 Tribunal and has challenged the action of the learned CIT(A) in sustaining the addition of Rs.10,63,000/- made by the Assessing Officer under section 69A of the Act. 4. We have heard the rival parties and have gone through the material placed on record. On perusal of records, it is seen that the Assessing Officer has passed the assessment order ex-parte qua the appellant assessee and the order of learned CIT(A) is non-speaking order and has dismissed the appeal of the assessee in a summary manner. In view of the foregoing, the order of learned CIT(A) is set aside and the issue in dispute is remanded back to the file of the Assessing Officer with the direction to pass de novo order in accordance with law after providing reasonable opportunity of being heard to the assessee. 5. In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced on 10/11/2025 in accordance with Rule 34(4) of the I.T.A.T. Rules) Sd/. Sd/. (SANJAY AWASTHI) (SUBHASH MALGURIA ) Accountant Member Judicial Member Dated:10/11/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. D.R. ITAT Printed from counselvise.com "