GOPAL PRASAD KASERA,BANKA V. ITO, WARD- 1 (4), BHAGALPUR

ITA 118/PAT/2025

AI Insights

The case involves Gopal Prasad Kasera, a businessman engaged in the retail and wholesale of cycles and spare parts, who appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2013-14. The primary issues in the appeal were the additions made by the AO regarding suppression of sales amounting to 35,78,064 and capital introduction of 15,41,936. The AO had reopened the case under section 147 of the Income Tax Act after receiving information about substantial deposits in the assessee's bank account, which were not reflected in the declared turnover. The Tribunal found that the explanations provided by the assessee for the discrepancies required further verification and thus restored the matter to the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788980 (ITAT-PATNA)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 12-03-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHWANI KR. SINGAL
• Assessee Lawyers: A.K. RASTOGI
• Keywords: Opportunity of being heard
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “PATNA” BENCH, PATNA BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No. 118/PAT/2025 (Assessment Year: 2013-14) Gopal Prasad Kasera Gopal Prasad Kasera, gopal cycle &Reparing Centre, Bhagalpur Road, Amarpur, Bhalgalpur, Bihar-813101 Vs. ITO, Ward 1(4) Bhagalpur, Bihar (Appellant) (Respondent) PAN No. AJLPK2437P Assessee by : Shri A.K. Rastogi, AR Revenue by : Shri Ashwani Kr. Singal, DR Date of hearing: 26.11.2025 Date of pronouncement: 28.11.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 02.03.2024 for the AY 2013-14. 2. At the outset, we note that the appeal of the assessee is barred by limitation by 285 days. At the time of hearing the counsel of the assessee explained the reasons for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, we find that the delay is for bonafide and genuine reasons and hence, we condone the delay and adjudicate the appeal. Printed from counselvise.com Page | 2 ITA No.118/PAT/2025 GopalPrasad Kasera; A.Y. 2013-14 3. The only issue raised by the assessee is against the confirmation of addition by the learned CIT (A) of ₹35,78,064/- on account of suppression of sales and ₹15,41,936/- on account of capital introduction. 3.1. The facts in brief are that the assessee did not file any return of income for the impugned assessment year. The assessee is engaged in the business of retail and wholesale of cycles and its spare parts. The learned AO received information that assessee had deposited ₹19,28,000/- in his bank account maintained with SBI during the instant financial year. Accordingly, the assessee was issued notice which was complied with. Consequently, the case of the assessee was reopened u/s 147 of the Act that income has escaped to the extent of ₹19,28,000/-. Notice u/s 148 of the Act was issued on 11.07.2018, which was complied with for filing the return of income on 25.09.2018, declaring total income of ₹2,17,459/-. During the course of assessment proceedings, the learned AO observed that the assessee has a gross turnover of ₹3,31,86,593/-, on which the assessee has declared profit of ₹2,17,459/-. The learned AO noted that the books of account were audited and assessee has not furnished the audited report within the due date because the income was below the taxable limit. Finally, the learned AO noted from the bank account statement with SBI that assessee has deposited into the bank account cash as well as through transfers aggregating to ₹4,74,34,667/-. AO noted that there was a difference of ₹1,42,48,074/- between the turnover declared by the assessee in the books vis a vis total deposits in the bank account. Accordingly, the learned AO treated the total amount deposited into the bank account of ₹47,43,457/- as turnover and income was estimated at the rate of 8% which comes to 37,94,773/-. After allowing credit for income Printed from counselvise.com Page | 3 ITA No.118/PAT/2025 GopalPrasad Kasera; A.Y. 2013-14 declared already of ₹2,16,709/- a net addition of ₹3,578,064/- was made by the AO. Similarly, the learned AO made another addition of ₹15,41,936/- on account of capital introduction. The said addition was made on the ground that the assessee stated the amount to be received from the son, who was also dependent on the assessee. 3.2. In the appellate proceedings, the appeal of the assessee also dismissed by the learned CIT (A). 3.3. After hearing the rival contentions and perusing the materials available on record, we find that the difference between the turnover declared by the assessee vis a vis amounts deposited into the bank accounts were stated to be on account of three reasons (1) collection from the sundry debtors/ loan from earlier years (2) proceeds from the son account (3) credits from receipt of sundry creditors as per the details below: - Printed from counselvise.com Page | 4 ITA No.118/PAT/2025 GopalPrasad Kasera; A.Y. 2013-14 3.4. We observed from the above that the information/details furnished by the ld. Counsel for the assessee requires verification at the end of the learned AO and therefore, we are restoring the appeal to the file of the learned AO with a direction to decide the same after taking into account the above details and after affording reasonable opportunity of being heard to the assessee. 4. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 28.11.2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Patna, Dated: 28.11.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Patna 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "