DUNDAPPA ISHWARAPPA GADVI,PANAJI V. ACIT, CIRCLE -1(1) PANAJI, PANAJI

ITA 83/PAN/2025

AI Insights

The case involves Dundappa Ishwarappa Gadvi, a firm engaged in wholesale groceries, who appealed against the order of the CIT(A) sustaining the addition of unexplained cash credits under section 68 of the Income Tax Act, 1961. The Assessing Officer (AO) had made additions based on substantial cash deposits during the demonetization period, which the assessee claimed were from accumulated cash balances and sales proceeds prior to demonetization. The CIT(A) upheld the AO's decision, leading to the appeal before the ITAT. The ITAT found that the CIT(A) had not adequately considered the assessee's submissions and documents, nor the request for a virtual hearing under the faceless appeal scheme, and thus remanded the matter back to the CIT(A) for a thorough re-examination.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838475 (ITAT-PANAJI)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Appeal Filed On: 12-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RIJULA UNIYAL.
• Assessee Lawyers: VINESH PIKALE
• Keywords: Opportunity of being heard; Corroborative evidences; Unexplained cash credit; Principle of natural justice
• Section: 143(3); 68; 133(6)

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. No.83/PAN/2025 (A.Y.2017-18) Dundappa Ishwarappa Gadvi, Behind Mandovi Hotel, Opp;Delhi Darbar, M.G.Road, Panjim-403001, Goa. Vs . ACIT Circle (1), Aaykar Bhavan, EDC, Patto, Panjim Goa-403001. PAN .No. AABFD1723G (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) Assessee by Shri.Vinesh Pikale.AR Revenue by Smt.Rijula Uniyal. Sr.DR सुनवाई की तारीख/Date of Hearing 12.02.2026 घोषणा की तारीख/Date of Pronouncement 17.02.2026 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the NFAC/CIT(A) passed u/sec 143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) sustaining the unexplained cash credits u/sec68 of the Act made by the Assessing Officer. The CIT(A) erred in not considering the documentary evidences filed and denied request of virtual hearing through video conferencing under the faceless appeal scheme. Printed from counselvise.com 2 ITA. No.83/PAN 2025. Dundappa Ishwarappa Gadvi... 2. The brief facts of the case are that, the assesse is a firm engaged as wholesalers of groceries, provision, rice, pulses, sugar, oil cattle feed etc. The assessee has filed the return of income for A.Y.2017-18 on 30.10.2017 disclosing a total income of Rs.68,36,250/- and the case was selected for scrutiny under the CASS. . The Assessing Officer (AO) based on the CASS reasons /information found that the assesse has made cash deposits aggregating to (i) Rs.1,22,82,500/- in Canara Bank and (ii) Rs.1,76,86,000/- in HDFC Bank during the demonetization period in F.Y.2016-17 and notice was issued u/sec143(2) and u/sec142(1) of the Act to furnish the details of sources of cash deposits along with supporting evidence and the assessee has partially complied with details and explaining that such cash deposits are out of accumulated cash balances on account of sale proceeds from the customers prior to demonetization period. Further the A.O. has issued notice U/sec 133(6) of the Act on the parties were cash sales are made during the period. Whereas the A.O. has dealt on the material available on record, reply received in lieu of notice u/sec133(6) of the Act, bank accounts credits and closing cash balances and issued a final show cause notice. The A.O was not satisfied with the explanations and made addition u/sec 68 of the Act of unexplained cash deposits of Rs.77,43,500/- and assessed the total income of Rs.1,45,79,750/- and passed the order u/sec 143(3) of the Act dated 29.12.2019. Printed from counselvise.com 3 ITA. No.83/PAN 2025. Dundappa Ishwarappa Gadvi... 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and findings of the AO but has sustained the action of the A.O and dismissed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. The Ld.AR mentioned that the CIT(A) has not dealt on the details and documents filed and also the request of the assessee made vide acknowledgement dated 24.09.2024 for video conferencing under the faceless appeal scheme was not considered and the Ld.AR supported the submissions with the factual paper book. Per Contra, the Ld.DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The crux of the disputed issues envisaged by the Ld.AR that the CIT(A) has erred in sustaining the addition u/sec68 of the Act without providing proper opportunity and overlooking the facts and material evidences. The assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assessee. The Ld.AR submitted that the CIT(A) has denied request of virtual hearing through Printed from counselvise.com 4 ITA. No.83/PAN 2025. Dundappa Ishwarappa Gadvi... video conferencing under the faceless appeal scheme and referred to the request made in the E-proceeding Response Acknowledgement dated 24.09.2024 placed at Page81& 82 of the paper book. Prima-facie, the CIT(A) has dealt on the findings of the AO and there are no findings on the submissions/evidences of the assesse filed in the proceedings referred and has not allowed the grounds of appeal. Therefore, considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) for afresh adjudication on merits and the CIT(A) shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in submitting the information for early disposal of the appeal and the grounds of appeal of the assessee are allowed for statistical purpose. 6. In the result, the appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 17.02.2026. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 17/02/2026 Printed from counselvise.com 5 ITA. No.83/PAN 2025. Dundappa Ishwarappa Gadvi... Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 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 Printed from counselvise.com 6 ITA. No.83/PAN 2025. Dundappa Ishwarappa Gadvi... Printed from counselvise.com "