GUNIT SINGH TUTEJA, RAIPUR,RAIPUR V. INCOME TAX OFFICER-4(1), RAIPUR, RAIPUR

ITA 363/RPR/2025

AI Insights

The case involves Gunit Singh Tuteja, the appellant, who contested an order from the CIT(Appeals)/NFAC regarding the assessment year 2017-18. The appellant had declared a total income of Rs.3,02,680 in his e-filed return, but the Assessing Officer added Rs.40,00,000 to his income, citing unexplained cash deposits during the demonetization period. The CIT(Appeals)/NFAC initially dismissed the appeal due to non-compliance by the appellant. However, the ITAT found that the principles of natural justice warranted a re-examination of the case, leading to the remand of the matter back to the CIT(Appeals) for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 652810 (ITAT-RAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Other Referred Cases: Brajesh Singh Bhadoria Vs. Dy./ACIT, Central Circle-2, Naya Raipur, IT(SS)A Nos.1 to 6, 8 & 9/RPR/2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: YOGESH SETHIA
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA No.363/RPR/2025 Ǔनधा[रण वष[ /Assessment Year : 2017-18 Gunit Singh Tuteja House No.265, V.V. Marketing, Sector-1, Geetanjali Nagar, Behind Kashi Apartments, Raipur-492 001 (C.G.) PAN: AETPT9295H .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer-4(5), Raipur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Yogesh Sethia, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 17.06.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 20.06.2025 2 Gunit Singh Tuteja Vs. ITO-4(5), Raipur ITA No.363/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The captioned appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 15.04.2025 for the assessment year 2017-18 as per the grounds of appeal on record. 2. The brief facts in this case are that the assessee had e-filed his return of income for the year under consideration declaring total income at Rs.3,02,680/-. Assessment was completed by the A.O vide his order passed u/s. 143(3) of the Income Tax Act, 1961 (for short ‘the Act’) after making an addition of Rs.40,00,000/- pertaining to cash deposits during the demonetization period, the source of which was not explained by the assessee. 3. That being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(Appeals)/NFAC. It is noted that as per Para 4 of the impugned order, the Ld.CIT(Appeals)/NFAC vide an ex-parte order had dismissed the appeal of the assessee due to non-compliance by the assessee. For the sake of clarity, Para 4 of the Ld.CIT(Appeals)/NFAC order is culled out as follows: “4. Decision: 4.1 The appeal was filed by the assessee against the order u/s.143(3) of the IT Act, 1961 dated 12.12.2019. In connection to the appeal, opportunities were provided to the 3 Gunit Singh Tuteja Vs. ITO-4(5), Raipur ITA No.363/RPR/2025 assesse to substantiate his grounds of appeal on following dates: Sr. No. Date of hearing (s) 1. 19.02.2021 2. 13.12.2024 3. 19.03.2025 4. 28.03.2025 Despite the issuance of the many notice as mentioned above, there was no response from the assessee apart from the communication received on 15.09.2023 requesting for adjournment to submit the necessary submissions in connection with the appeal citing the reason that they were occupied in Tax Audit for the year 2022-23. Accordingly, the personal hearing was adjourned as requested. However even after providing reasonable time, no further response was received even after sending many notices subsequent to it. It is therefore, evident that the appellant is not interested in providing any details during the appellate proceedings and avail the opportunity under the principle of natural Justice. In such situation, the only conclusion which can be drawn is that the appellant is not interested in pursuing the appeal.” 4. In this regard, the Ld. Sr. DR has fairly conceded that the matter may be adjudicated denovo on merits before the first appellate authority providing one final opportunity to the assessee. 5. I have heard the submissions of the parties herein and carefully considered the contents in the documents/material available on record. As per the aforesaid examination of the entire spectrum of the matter in the interest of natural justice, I deem it fit and proper to provide one final opportunity to the assessee to represent his case on merits before the Ld. CIT(Appeals). 4 Gunit Singh Tuteja Vs. ITO-4(5), Raipur ITA No.363/RPR/2025 6. In the overall spectrum of the ex-parte order being passed due to non-compliance by the assessee before the Ld.CIT(Appeals)/NFAC, I refer to the order of the ITAT, “Division Bench”, Raipur in the cases of Brajesh Singh Bhadoria Vs. Dy./ACIT, Central Circle-2, Naya Raipur, IT(SS)A Nos.1 to 6, 8 & 9/RPR/2025, dated 20.03.2025 wherein the Tribunal had dealt with similar issue on the same parameters of ex-parte order passed by the Ld. CIT(Appeals)/NFAC and remanded the matter back to the file of the Ld. CIT(Appeals)/NFAC. 7. Respectfully following the aforesaid order on same parity of reasoning, I am providing one final opportunity to the assessee to represent his case before the first appellate authority. Accordingly, I set- aside the order of the Ld. CIT(Appeals)/NFAC and remand the matter back to its file for denovo adjudication as per law while complying with the principles of natural justice. The Ld. Counsel for the assessee made a statement at bar that the source of cash deposits was from his past earnings and accumulated savings and that the assessee shall make further submissions before the Ld. CIT(Appeals)/NFAC. 8. Before parting with this matter it is stated that if the assessee fails to comply with hearing notices before the Ld. CIT(Appeals)/NFAC or the assessee fails to explain source of the cash deposits the additions are to be sustained. 5 Gunit Singh Tuteja Vs. ITO-4(5), Raipur ITA No.363/RPR/2025 9. As per the above terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 20th day of June, 2025. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 20th June, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur "