DHARAM SINGH,KAITHAL V. INCOME TAX OFFICER, KURUKSHETRA

ITA 1143/CHANDI/2024

AI Insights

The case involves an appeal by the assessee, Dharam Singh, against the order of the Ld. CIT(A), which upheld the addition of Rs.29,95,000 made by the Ld. AO under section 69A of the Income-tax Act, 1961, concerning unexplained cash deposits. The assessment was initially completed under section 144 of the Act following the receipt of information about the cash deposits in the assessee's bank account. The CIT(A) passed an ex parte order due to the non-appearance of the assessee, leading to the current appeal. The tribunal decided to remand the case back to the CIT(A) for a fresh assessment, emphasizing the principles of natural justice and fair play.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361164 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: PULKIT SAINI
• Keywords: Opportunity of being heard; Corroborative evidences; Principle of natural justice
• Section: 148; 144

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” ,चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 1143/Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2011-12 Dharam Singh House No. 88, Village Papsar, Tehsil Guhla, Kaithal बनाम The ITO Ward 1, Kurukshetra Haryana ˕ायी लेखा सं./PAN NO: BZTPS8624P अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Pulkit Saini, Advocate राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 14/05/2025 उदघोषणा की तारीख/Date of Pronouncement : 21/05/2025 आदेश/Order PER LALIET KUMAR, J.M: This appeal has been filed by the assessee against the order dated 27.02.2024 passed by the Ld.CIT(A), NFAC, Delhi, for the Assessment Year 2011–12, wherein the Ld. CIT(A) upheld the addition of Rs.29,95,000/- made by the Ld. AO under section 69A of the Income-tax Act, 1961 (“the Act”) on account of unexplained cash deposits. 2. The assessment in the present case was completed u/s 144 of the Act. The AO received information that cash of Rs.29,95,000/- was deposited in the bank account of the assessee during the relevant previous year. Notice u/s 148 was issued and in the absence of any response, best judgment assessment was completed. The assessee filed an appeal before the CIT(A). 3. From the impugned appellate order, it is evident that the Ld. CIT(A) has passed the order ex parte in absence of any effective participation by the assessee, despite several notices issued through the ITBA portal. The order of the Ld. CIT(A) is primarily based on the observation that the assessee failed to pursue the appeal or produce any supporting evidence or explanation. 4. Before us, the Ld. AR contended that the non-appearance before the Ld. CIT(A) was not deliberate and due to certain inadvertent reasons, the assessee 2 could not comply with the notices. It was further submitted that the assessee had substantive grounds and evidences in support of the source of the impugned cash deposit, which could not be placed earlier and may be allowed to be submitted if one more opportunity is granted. 5. Per contra, the Ld. Sr. DR relied on the order of the lower authorities. 6. We have heard the rival contentions and perused the material available on the record. Considering the fact that the Ld. CIT(A) has not adjudicated the appeal on merits and the assessee has expressed willingness to cooperate and submit necessary documents to substantiate his case, we are of the considered view that the assessee deserves a final opportunity to present his case before the Ld. CIT(A). 6.1 Accordingly, in the interest of natural justice and fair play, we deem it fit to remand the matter back to the file of the Ld. CIT(A) with a direction to decide the appeal afresh after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to ensure due compliance and not to seek unnecessary adjournments. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. (Order pronounced in the open Court on 21/05/2025) Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "