HARERAM SINGH,BELGAUM V. DY/ASST. COMMISSIONER- CENTRAL CIRCLE, BELGAUM

ITA 31/PAN/2025

AI Insights

The case involves Hareram Singh, an army employee, who appealed against the order of the CIT(A)-2 Panaji, which sustained the additions made by the Assessing Officer under sections 144, 153C, and 250 of the Income Tax Act. The dispute arose from a search operation under section 132 of the Act, which led to the discovery of undisclosed investments in Fixed Deposit Receipts (FDRs) and associated interest income. The Assessing Officer made additions to the assessee's income based on these findings, which were upheld by the CIT(A) due to the assessee's non-compliance and non-appearance at hearings. The Tribunal, considering the principles of natural justice, decided to remit the case back to the Assessing Officer for a fresh examination, allowing the assessee another opportunity to comply and present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32347 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CAPTAIN PRADEEP ARYA
• Keywords: Set aside; Salary income; Principle of natural justice
• Section: 144; 250; 153C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 31/PAN/2025 (A.Y. 2018-19 ) Hareram Singh, 102,Kaivalya Residency, Budhwar peth, Tilakwadi, Belgaum-590006, Karnataka. Vs . ACIT-Central circle, Saraf Galli, Belgaum-590006, Karnataka. . PAN .No. ABSPH5645K (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None (letter 31-03-2025) Revenue by Shri.Captain Pradeep Arya.DR सुनवाई कȧ तारȣख/Date of Hearing 02.04.2025 घोषणा कȧ तारȣख/Date of Pronouncement 03.04.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of CIT(A)-2 Panaji passed u/sec 144 r.w.s 153C and u/sec 250 of the Act. The assesse has raised the grounds of appeal challenging the exparte order of the CIT(A) sustaining the additions made by the Assessing officer. 2. The brief facts of the case are that, the assesse is working in the army and derives income from salary. The 2 ITA. No. 31/PAN/2025 Shri Hareram singh. assesse has filed the return of income for A.Y.2018-19 on 4-08-2018 disclosing a total income of Rs.5,16,290/- There was search u/sec132 of the Act conducted in the case of shri Gopal Annappa sambhji on 7-08-2018, in the search operations, it was found that the assessee has made investment in FDR and interest was received. Hence notice u/se 153C of the Act was issued and there was no proper compliance. Whereas the A.O found that the assesse has made 10 FDRs of Rs 1 Lakh each, aggregating to Rs.10 Lakhs and the explanations were called to substantiate the deposits. Since, partial details were filed and statement under section131 of the Act was recorded, hence the AO considering the information available on record has invoked the provisions of Sec144 of the Act and made addition of undisclosed investments in FDRs u/sec69A of the Act of Rs.10,00,000/-and Rs,20,000/- as undisclosed interest income and assessed the total income of Rs.16,86,291/- and passed the order u/sec 144 r.w.s153C of the Act dated 16.04.2021. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved 3 ITA. No. 31/PAN/2025 Shri Hareram singh. by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 4. We heard the Ld.DR submissions and perused the material on record and none appeared on behalf of the assesse. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at page 3 Para 4.2 of the order and there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts, circumstances and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the Assessing Officer to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and 4 ITA. No. 31/PAN/2025 Shri Hareram singh. shall cooperate in submitting the information. And, we allow the grounds of appeal of the assesse for statistical purpose. 5. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 03.04.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 03/04/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No. 31/PAN/2025 Shri Hareram singh. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "