FARIDABANU SHAIKH,AHMEDABAD V. WARD 3(3)(1) AHMEDABAD, PRATYAKSHA KAR BHAWAN

ITA 936/AHD/2024

AI Insights

This case involves an appeal by Faridabanu Shaikh against the order of the Commissioner of Income-tax (Appeals), which upheld an addition of Rs. 11,00,000 to her income for the Assessment Year 2017-18. The addition was made by the Assessing Officer under section 69A of the Income Tax Act, 1961, citing unexplained cash deposits during the demonetization period. The CIT(A) dismissed the appeal ex-parte, leading to the current appeal before the ITAT. The ITAT found procedural lapses in the handling of the assessee's appeal and remanded the case back to the CIT(A) for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 29547 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 03-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C. DHARANI NATH
• Assessee Lawyers: CHETAN AGARWAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदा बा द \u0012ा यपीठ SMC, अहमदा बा द । IN THE INCOME TAX APPELLATE TRIBUNAL “ SMC ” BENCH, AHMEDABAD ] BEFORE DR. BRR KUMAR, VICE PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER आयकर अपील सं /ITA No.936/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2017-18 Faridabanu Shaikh C/o. Humera Packaging Plot No.15,Nr. Sardar Palace Hotel Sarkhej Sanand Highway, Sanand Ahmedabad – 380 055 (Gujarat) बनाम/ v/s. The ITO Ward-3(3)(1) Ahmedabad \u0013थायी लेखा सं./PAN: AQGPS 1044 J (अपीलाथ\u0017/ Appellant) (\u0018\u0019 यथ\u0017/ Respondent) Assessee by : Shri Chetan Agarwal, A.R. Revenue by : Shri C. Dharani Nath, Sr.DR सुनवाई की तारीख/Date of Hearing : 19/11/2024 घोषणा की तारीख /Date of Pronouncement: 22/11/2024 आदेश/O R D E R PER MS. SUCHITRA KAMBLE, JUDICIAL MEMBER This appeal is filed by the Assessee against the order dated 13/12/2023 passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)” in short] for Assessment Year (AY) 2017-18. 2. Grounds of appeal are as under: “1. The Ld.CIT(A) erred in law as well as on fact in dismissing appeal ex-parte. 2. Ld.CIT(A) erred in law as well as on fact in upholding addition of Rs.11,00,000 made by Ld.AO being cash deposited in bank account.” ITA No.936/Ahd/2024 Faridabanu Shaikh, vs. ITO Ward-3(3)(1) Asst. Year : 2017-18 2 3. The assessee filed her return of income for AY 2017-18 on 23/09/2013 declaring income of Rs.1,78,110/-. The assessee, as per the observation of the Assessing Officer (AO), is claimed to have income from milk selling business. The return of income was processed u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as “the Act). The case was selected for limited scrutiny with the reason of “large value cash deposits during demonetization period as compared to returned income”. Accordingly, notice u/s.143(2) of the Act was issued on 23/08/2018. Notice u/s.142(1) of the Act was issued along with questionnaire on 11/04/2019. Further, notice u/s.142(1) of the Act was also issued to the assessee on 10/10/2019 respectively. In response to the notices, the assessee furnished written submissions and details. The AO observed that as on 31/03/2016, there was a closing cash book balance of Rs.12,84,371/- which is claimed to have been accumulated over the period of last five years as seen from the cash books submitted for Financial Years (FY) 2010-11 to 2015-16. The AO observed that the cash books and other accounts furnished by the assessee have no genuineness and there was not a single withdrawal towards any of the expenses from the cash books furnished for the last five years. The assessee could not establish the genuineness and, thus, this is an undisclosed amount of Rs.11 lakhs which was deposited during the period of demonetization. Thus, the AO made an addition of Rs.11 lakhs u/s.69A of the Act as unexplained money of the assessee. 4. Being aggrieved by the assessment order, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld.AR for the assessee submitted that the CIT(A) has passed ex- parte order without giving any notice to the assessee. ITA No.936/Ahd/2024 Faridabanu Shaikh, vs. ITO Ward-3(3)(1) Asst. Year : 2017-18 3 6. The Ld.DR for the Revenue relied upon the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused the material available on record. After going through the file, it appears that there is a delay of 82 days in filing the present appeal for which no explanation has been given by the assessee, but from the perusal of the assessment order and the order of the CIT(A), it reveals that the order of the CIT(A) is ex-parte. Further, in Column 3 (c), the date of service or communication of the order mentioned in Form No.36 is 13/12/2023 and, therefore, we condone the delay. Besides this, the order passed by the CIT(A) is ex-parte and without mentioning any proper service of notice as contained in Paragraph No.4 of the order of the CIT(A). Therefore, it would be appropriate if this matter is remanded back to the file of the CIT(A) for proper verification and adjudication of the issues contested by the assessee before te4h CIT(A). The CIT(A) will adjudicate the same as per the Income Tax Statue. Needless to say, the assessee be given proper opportunity of being heard by following natural justice. 8. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the Court on 22nd November, 2024 at Ahmedabad. Sd/- Sd/- (DR. BRR KUMAR) VICE PRESIDENT (SUCHITRA KAMBLE) JUDICIAL MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 22/11/2024 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS ITA No.936/Ahd/2024 Faridabanu Shaikh, vs. ITO Ward-3(3)(1) Asst. Year : 2017-18 4 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय #ितिनिध अिधकरण अपीलीय आयकर /DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation -Dictation-pad 5 pages attached with file : 20.11.2024 2. Date on which the typed draft is placed before the Dictating Member. : 21.11.2024 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 22.11.24 7. Date on which the file goes to the Bench Clerk. : 22.11.24 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "