DEPUTY COMMISSIONER OF INCOME TAX, PATNA V. PRABHA TIWARY, PATNA

ITA 353/PAT/2023

AI Insights

This case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals) which had allowed the appeal of the assessee, Prabha Tiwary, concerning unexplained cash deposits during the demonetization period amounting to \\u20b92,22,04,000. The assessee, running a petrol station, had her case selected for scrutiny due to these deposits. Initially, the AO made an addition to the assessee's income under section 69A of the Income Tax Act, which was later contested and partially overturned by the CIT(A). The Revenue challenged the CIT(A)'s decision, leading to this appeal where the Tribunal found that neither the AO nor the CIT(A) had adequately examined the issues, particularly the source of the cash deposits and the possibility of them being from the assessee's business turnover.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 24510 (ITAT-PATNA)
• Duration Of Justice: 11 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 15-12-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AJAY KR. SHUKLA
• Assessee Lawyers: SUDEEP SINHA
• Keywords: Set aside
• Section: 142(1); 143(2); 69; 69A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PATNABENCH, PATNA (Through Virtual hearing at Kolkata) BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No.353/PAT/2023 (Assessment Year: 2017-18) Dy. Commissioner of Income Tax, Lok NayakJai Prakash Bhawan, 4th Floor, Dak Bangalow Crossing, Frazer Road, Patna, Bihar 800001 Vs. Prabha Tiwary, Tiwary Service Station Maner, Patna-801108, Bihar (Appellant) (Respondent) PAN No. ACRPT5598D CO No. 2/PAT/2024 (Arising in ITA No.353/PAT/2023 for A.Y. 2017-18) Prabha Tiwary, Tiwary Service Station Maner, Patna-801108, Bihar Vs. Dy. Commissioner of Income Tax, Lok NayakJai Prakash Bhawan, 4th Floor, Dak Bangalow Crossing, Frazer Road, Patna, Bihar 800001 (Applicant) (Respondent) Assessee by : Sh. Sudeep Sinha, AR Revenue by : Sh. Ajay Kr. Shukla, Sr. DR Date of hearing: 13.11.2024 Date of pronouncement : 27.11.2024 O R D E R PER RAJESH KUMAR, AM: This is the appeal preferred by the revenue and cross-objection by the assessee against the order of the Ld. Commissioner of Page | 2 ITA No. 353/PAT/2023 & CO. 2/PAT/2024 Prabha Tiwary; A.Y. 2017-18 Income Tax (Appeals)-National Faceless Appeal Centre, Delhi, Delhi [hereinafter referred to as the Ld. CIT(A)”] dated 31.10.2023 for the AY 2017-18. 02. The Revenue has challenged the order of ld. CIT (A) relating to the issue of cash deposit during the demonetization period of ₹2,22,04,000/- as made by the ld. AO u/s 69 of the Act. 03. The facts in brief are that the assessee filed return of income on 24.10.2017, declaring total income of ₹16,56,300/-. The assessee is running a petrol pump in the name of “M/s Tiwary Service Station”. The case of the assessee was selected for scrutiny assessment through Computer Assisted Scrutiny Selection (CASS) for the reason of cash deposits during the demonetization period. Accordingly, the notice u/s 143(2) was issued on 22.09.2018, which remained non- complied. Thereafter, notice u/s 142(1) of the Act was issued along with questionnaire and assessee furnished certain details before the ld. Assessing Officer in compliance thereto. Thereafter, the assessee remained non-compliant and finally, the assessment was framed u/s 144 of the Act by making addition of ₹2,22,04,000/- to the total income of the assessee on account of unexplained deposit u/s 69A of the Act. 04. Aggrieved, assessee preferred the appeal before the ld. CIT (A). In the appellate proceedings, the ld. CIT (A) allowed the appeal of the assessee by holding that the ld. AO has not rejected the books of accounts. Finally, the ld. CIT (A) has passed a very cryptic order allowing the appeal of the assessee. 05. Aggrieved by the order of ld. CIT (A), Revenue is in appeal before us. After hearing the rival contentions and perusing the material available Page | 3 ITA No. 353/PAT/2023 & CO. 2/PAT/2024 Prabha Tiwary; A.Y. 2017-18 on record, we note that the issues have not been examined either by the ld. AO nor by ld. CIT (A). We even note that the ld. CIT (A) has decided the issue on the basis of the facts available on record. We note that the assessee is running a petrol station and the possibility of depositing cash out of the cash turnover of the assessee could not be ruled out. However, this fact has not been examined either by the ld. AO or by ld. CIT (A). Therefore, we restore the appeal to the file of the ld. AO with a direction to examine the books of account of the assessee along with the evidences/ details, which the assessee may wish to file during the set aside proceedings. Accordingly, the appeal of the assessee is restored to the file of the ld. AO. 06. Since, we have restored the appeal of the Revenue to the file of the AO, the Cross Objection of the assessee in support of order of ld. CIT (A) becomes infructuous and hereby dismissed. 07. In the result, the appeal of the Revenue is allowed for statistical purpose and the CO of the assessee is dismissed. Order pronounced in the open court on 27.11.2024. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Kolkata, Dated: 27.11.2024 Sudip Sarkar, Sr.PS Page | 4 ITA No. 353/PAT/2023 & CO. 2/PAT/2024 Prabha Tiwary; A.Y. 2017-18 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, PATNA "