DONWIL RODRIGUES,REIS MAGOS V. ACIT, CIRCLE 2(1), PANAJI

ITA 254/PAN/2024

AI Insights

The case involves Donwil Rodrigues, a fish trader, who appealed against the order of the CIT(A) which sustained an addition under section 69A of the Income Tax Act, 1961, made by the Assessing Officer (AO). The AO had made additions based on unexplained cash deposits in the assessee's bank accounts during the financial year 2016-17, amounting to Rs.1,61,33,747. The CIT(A) dismissed the appeal ex-parte due to non-compliance by the assessee in attending the hearings. The Tribunal, considering the principles of natural justice, decided to provide another opportunity to the assessee to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633080 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DESHMUKH SPRAKASH.
• Keywords: Set aside; Business income; Principle of natural justice
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos.254/PAN/2024 (A.Y. 2017-18) Donwil Rodrigues, K/24,Kegdevelim,Resimagos, Bardez-403114, Goa. Vs . ACIT-Circle2(1), Aaykar Bhavan, EDC, Patto, Panjim-403001. Goa. PAN/GIR No. BUFPR1566Q (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(Letter dt31-05-2025) Revenue by Shri.Deshmukh SPrakash.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 05.06.2025 घोषणा कȧ तारȣख/Date of Pronouncement 10.06.2025 ORDER PER PAVAN KUMAR GADALE ,JM: The assesse has filed the appeal against the order of the NFAC/CIT(A) Delhi passed u/sec143(3) and u/sec 250 of the Act. 2. At the time of hearing, it was found that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed an affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and sufficient cause was explained and the Ld. DR has no specific objections. Accordingly, we condone 2 ITA. No.254/PAN/2024 DonwilRodrigues.. the delay and admit the appeal. The assesse has raised the grounds of appeal challenging the ex-parte order of the CIT(A) sustaining the addition u/sec69A of the Act made by the Assessing Officer). 3. The brief facts of the case are that, the assesse is engaged in fish trading. The assessee has filed the return of income for the A.Y.2017-18 disclosing a total income of Rs.15,99,230/- on 27.02.2018 and the case was selected for scrutiny. The Assessing Officer (AO) based on the information found that the assesse has made cash deposits in the bank accounts in F.Y.2016-17 and notice u/sec 142(1) of the Act was issued to furnish the details and sources of deposits. The A.O found the cash deposits credits in the bank accounts maintained with (i) State Bank of India branches and (ii) Canara Bank and explanations were called to substantiate the credits in the F.Y.2016-17. And the assessee has not properly complied the information nor gave clarifications on the cash deposits, business income and other details. Whereas the A.O was not satisfied with the explanations and issued notice u/sec133(6) of the Act on the banks for the bank statements and relied on the statement recorded in the survey u/sec133A of the Act and dealt on the provisions and made additions u/sec69A of the Act of Rs.1,61,33,747/- and assessed the total income of Rs.1,77,32,973/- and passed the order u/sec143(3) of the Act dated 31.12.2019. 3 ITA. No.254/PAN/2024 DonwilRodrigues.. 4. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal. 5. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page2 Para 3 of the CIT(A) order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the 4 ITA. No.254/PAN/2024 DonwilRodrigues.. case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And, we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by assesse is allowed for statistical purposes. Order pronounced in the open court on 10.06.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 10/06/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No.254/PAN/2024 DonwilRodrigues.. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "