DINESH PRASAD,AURANGABAD V. ACIT CENTRAL CIRLCLE-1, GAYA

ITA 308/PAT/2023

AI Insights

This case involves an appeal by Dinesh Prasad against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, which confirmed the addition of Rs. 2,81,51,800 as unexplained cash credit under section 68 of the Income Tax Act. This addition was initially made by the AO due to cash deposits in the assessee's bank account during the demonetization period. Both the AO and the CIT(A) conducted ex-parte proceedings as the assessee failed to appear on multiple occasions. The Income Tax Appellate Tribunal (ITAT) decided to restore the matter to the AO for a fresh examination, emphasizing the need for a fair opportunity for the assessee to present his case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 28844 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 144; 68

Judgement Text

" आयकर अपीलȣय अͬधकरण,पाटना पीठ, पाटना IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH: PATNA (VIRTUAL HEARING AT KOLKATA) Įी दुåवुǽ आर. एल. रेɬडी, उपाÚय¢ एबं Įी राजेश क ुमार, लेखा सदèय क े सम¢ [Before Shri Duvvuru RL Reddy, Vice-President &Shri Rajesh Kumar, Accountant Member] I.T.A. No. 308/Pat/2023 Assessment Year: 2017-18 Dinesh Prasad (PAN: ARBPP 7457 Q) Vs. ACIT, Circle-1, Gaya Appellant / ) अपीलाथȸ ( Respondent / (Ĥ×यथȸ) Date of Hearing / सुनवाई कȧ Ǔतͬथ 02.12.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 31.12.2024 For the Assessee / Ǔनधा[ǐरती कȧ ओर से Shri Manish Rastogi, Advocate For the Revenue / राजèव कȧ ओर से Shri Ashwani Kr. Singal, JCIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 16.08.2023 for the AY 2017-18. 2 I.T.A. No.308/Pat/2023 Assessment Year: 2017-18 Dinesh Prasad 2. The only issue raised in the grounds of appeal is against the confirmation of addition of Rs. 2,81,51,800/- by the Ld. CIT(A) as made by the AO on account of cash deposit during demonetization period in the bank account of the assessee. 3. At the outset, we note that there is a delay of two days in filing the appeal. After considering the rival contentions and facts available on record, we find that the delay is for sufficient and bonafide reasons and accordingly the same is condoned and the appeal is admitted for adjudication. 4. We note that the assessment has been framed by the AO ex-parte u/s 144 of the Act vide order dated 29.11.2019 when the assessee failed to turn up on various dates/ hearing allowed by the AO. Finally, the AO made addition in respect of cash deposited by the assessee during demonetization period by treating the same as unexplained cash credit u/s 68 of the Act. 5. Similarly the Ld. CIT(A) in the appellate proceedings allowed the assessee as many as eight opportunities have given however, the assessee failed to respond the same. Finally the Ld. CIT(A) upheld the order of AO by dismissing the appeal of the assessee. 6. After hearing the rival contentions and perusing the material available on record, we find that the proceedings before the AO as well as the Ld. CIT(A) were ex- parte when the assessee failed to respond r on the various dates of hearing. The addition made by the AO is on account of cash deposits during demonetization period and the same remained unexplained before both the parties. On the prayer of the assessee , we may deem it fit and reasonable and also in the interest of justice and fair play to restore the matter to the file of AO for de novo adjudication of the issue after affording a reasonable opportunity of hearing to the assessee. 3 I.T.A. No.308/Pat/2023 Assessment Year: 2017-18 Dinesh Prasad 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 31st December, 2024 Sd/- Sd/- (Duvvuru RL Reddy /दुåवुǽ आर. एल. रेɬडी) (Rajesh Kumar/राजेश क ुमार) Vice-President/उपाÚय¢ Accountant Member/लेखा सदèय Dated: 31st December, 2024 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Dinesh Prasad, New Quazi Mohalla, Aurangabad Road, Bihar- 824101 2. Respondent – ACIT, Circle-1, Gaya 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. PCIT- , Patna 5. DR, Patna Bench, Patna True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "