GANESH MAHATO,DURGAPUR, SOUTH PARGANAS V. ASSISTANT COMMISSION OF INCOME TAX CIRCLE 26(1), KOLKATA

ITA 182/KOL/2024

AI Insights

The case involves Ganesh Mahato, the appellant, who contested an order from the CIT(A) regarding the assessment of his income for the year 2017-18. The appellant had declared a total income of Rs.3,76,470, which was significantly lower than the total deposits in his bank accounts during the fiscal year, amounting to Rs.2,00,80,900. The Assessing Officer treated the excess deposit of Rs.1,10,60,700 as unexplained money under Section 69A of the Income-tax Act, 1961, and added it to the appellant's income. The CIT(A) upheld this decision after the appellant failed to respond to notices or make any submissions. The appellant appealed to the Income Tax Appellate Tribunal, which, while acknowledging the appellant's non-compliance, decided to grant a final opportunity for representation, imposing a cost of Rs.10,000 for the previous non-cooperative conduct.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712057 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 144; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘A” BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T.A. No.182/Kol/2024 Assessment Year: 2017-18 Ganesh Mahato…...……………………..…………………....Appellant Vill. Durgapur, PO- Jaynagar, Majilpur, South 24 Parganas-743337. [PAN: BGPPM6996K] vs. ACIT, Circle-26(1), Kolkata ……………..………………….…..... Respondent Appearances by: Shri Ankit Jalan, AR, appeared on behalf of the appellant. Shri Manas Mondal, Sr. DR, appeared on behalf of the Respondent. Date of concluding the hearing : July 23, 2025 Date of pronouncing the order : July 23, 2025 आदेश / ORDER Per Sonjoy Sarma, Judicial Member: This appeal by the assessee is directed against the order dated 01.12.2023 passed by the NFAC [in short CIT(A)] under section 250 of the Income-tax Act, 1961. 2. Brief facts of the case are that the assessee filed return of income declaring total income of Rs.3,76,470/-. The case was selected for limited scrutiny. Notices under Sections 143(2) and 142(1) were issued but she assessee remained non-compliant. The Assessing Officer observed that total deposits in the assessee's bank accounts With Bank during the period April 2016 to March 2017 amounted to Rs.2,00,80,900, whereas the assessee had shown only Rs.90,20,200 as sales. The excess deposit of Rs.1,10,60,700 was treated as unexplained money under Section 69A and added to the income of the assessee. Printed from counselvise.com I.T.A. No.182/Kol/2024 Ganesh Mahato 2 Assessment was completed under Section 144 determining total income at Rs.1,14,37,170. 3. Aggrieved, the assessee filed appeal before the ld CIT(A), but again failed to respond to the notices or make any submission. The CIT(A) dismissed the appeal ex parte, upholding the assessment order. 4. The assessee is in appeal before us and has contended that the orders were passed without proper representation, and an opportunity be given to present its case before the CIT(A). 5. The learned Departmental Representative strongly objected to the request, submitting that the assessee is a habitual defaulter who failed to avail multiple opportunities at both stages of proceedings. 6. We have heard both parties and perused the record. It is undisputed that the assessee failed to comply with statutory notices and no representation was made either before the Assessing Officer or before the ld. CIT(A). However, considering the nature of addition and in the interest of natural justice, we deem it appropriate to grant one final opportunity to the assessee. However, we also take note of the consistent non-cooperative conduct of the assessee, and accordingly, we direct that a cost of Rs.10,000 shall be imposed upon the assessee. The said cost shall be deposited in the government account immediately receipt of this order, failing which the appeal shall be treated as dismissed in limine. Subject to the above, the matter is restored to the file of the ld. CIT(A) for fresh adjudication, after giving reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with all notices issued and assist in disposal of the appeal without seeking undue adjournments. Printed from counselvise.com I.T.A. No.182/Kol/2024 Ganesh Mahato 3 7. In the result, the appeal is allowed for statistical purposes, with cost of Rs.10000 imposed on the assessee. Kolkata, the 23rd July, 2025. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 23.07.2025. Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3.CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "