GULLIPALLI RAM PRASAD,VISAKHAPATNAM V. INCOME TAX OFFICER WARD 1, BERHAMPUR

ITA 440/CTK/2024

AI Insights

This case involves an appeal by Gullipalli Ram Prasad against the order of the CIT(A), NFAC, Delhi, which upheld the assessment made under sections 147 and 144 of the Income Tax Act. The assessment included an addition of Rs. 87,99,924 as unexplained money under section 69A of the Act, due to the assessee's failure to provide a return of income or explanations for the credit entries in his bank accounts during reassessment proceedings. The Tribunal found that the assessee was not given a proper opportunity to represent his case in the lower proceedings and thus restored the matter to the Assessing Officer for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25949 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: N.TRINATH RAO
• Keywords: Reassessment proceedings
• Section: 147; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE MANISH AGARWAL Gullipalli Ram Prasad, 1/218/34, Sri S Residency, Chandanp Colony, Flat No.703, Gopalapatam, Visakhapatnam PAN/GIR No. (Appellant Per Bench This is an CIT(A), NFAC, Delhi dated 18/10233073 for the ass 2. Shri N.Trinath Rao S.C.Mohanty, Sr. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.440/CTK/2024 Assessment Year : 2018-19 Gullipalli Ram Prasad, 1/218/34, Sri Simhadri Residency, Chandanpur Colony, Flat No.703, Gopalapatam, Visakhapatnam Vs. Income Tax offi Berhampur No.AUCOO 7479 A (Appellant) .. ( Respondent Assessee by : Shri N.Trinath Rao, CA Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 08/01/20 Date of Pronouncement : 08/01/20 O R D E R This is an appeal filed by the assessee against the order of the ld A), NFAC, Delhi dated 28.8.2024 in Appeal No.NFAC/2017 for the assessment year 2018-19. N.Trinath Rao, ld AR appeared for the assessee and Shri , Sr. DR appeared for the revenue. P a g e 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, MEMBER , ACCOUNTANT MEMBER Income Tax officer, Ward-1, Respondent) N.Trinath Rao, CA : Shri S.C.Mohanty, Sr DR 2025 025 appeal filed by the assessee against the order of the ld 28.8.2024 in Appeal No.NFAC/2017- the assessee and Shri ITA No.440/CTK/2024 Assessment Year : 2018-19 P a g e 2 | 4 3. It was submitted that during the course of reassessment proceedings u/s.147 of the Act, the assessee could not furnish the return of income and furnish submission regarding the credit entries in the bank accounts. Therefore, the Assessing Officer proceeded to pass the assessment order u/s.147 r.w.s 144 of the Act, making addition of Rs.87,99,924/- as unexplained money u/s.69A of the Act. Even during the appellate proceedings, the assessee had filed written submission stating the reason as to why he was not able to file the return of income and necessary details regarding the deposit in his bank account, which was not considered by the ld CIT(A) in proper perspective. It was the submission that the ld CIT(A) has not considered all the evidences before him. He therefore, prayed that one more opportunity be granted to the assessee to explain the nature of deposit before the Assessing Officer. 4. In reply, ld Sr DR supported the orders of lower authorities. 5. We have considered the rival submissions. A perusal of assessment order passed u/s.147 r.w.s. 144 of the Act clearly shows that as the assessee had not filed his return of income, notice u/s.148 of the Act was issued for reopening the assessment u/s 147 of the Act. In response to notice u/s.148 of the Act, the assessee did not file the return of income. During the course of assessment proceedings, the Assessing Officer noticed that the assessee had made cash and other deposits of Rs.87,99,924/- in his bank accounts. Although various notices were issued to the assessee to ITA No.440/CTK/2024 Assessment Year : 2018-19 P a g e 3 | 4 explain the nature of cash deposits in the bank account, the assessee failed to respond the notices, leading to assessment framed u/s.147 r.w.s 144 of the Act by making total addition of Rs.87,99,924, representing the cash deposit in the bank account. In the first appellate proceedings also, the assessee only filed written submission by stating that the assessee is an unemployed person and had earlier savings to carry on some small business. The explanation of the assessee did not find favour by the ld CIT(A) and consequently, the assessment was upheld. 6. Before us, ld AR that he has all such documentary evidences regarding the source of money and deposit in the bank account and if one more opportunity is granted, he will produce the same before the Assessing officer. As the assessment order has been passed u/s.144/147 of the Act and during the appellate proceedings also, reassessment proceedings has been challenged before the ld CIT(A) and proper opportunity was not given to the assessee to represent his case, in the interest of justice, the issues in this appeal are restored to the file of the Assessing Officer for re- adjudication on merits as well as the legal ground for reopening of reassessment proceedings, after affording reasonable opportunity of hearing to the assessee. ITA No.440/CTK/2024 Assessment Year : 2018-19 P a g e 4 | 4 7. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 08/01/2025. Sd/- sd/- (Manish Agarwal) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 08/01/2025 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.Secretary ITAT, CUTTACK 1. The Appellant : Gullipalli Ram Prasad, 1/218/34, Sri Simhadri Residency, Chandanpur Colony, Flat No.703, Gopalapatam, Visakhapatnam 2. The Respondent: Income Tax officer, Ward- 1, Berhampur 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, Berhampur 5. DR, ITAT, 6. Guard file. //True Copy// "