INCOME TAX OFFICER, JAJPUR ROAD V. TUSHAR KANTA ROUTRAY, JAJPUR

ITA 153/CTK/2025

AI Insights

This case involves an appeal by the Revenue against the order of the CIT (A), which estimated the income of the assessee, Tushar Kanta Routray, at 8% without any provision for estimation. The Revenue contended that the assessee had been non-cooperative and that substantial cash withdrawals from the assessee's current account were treated as unexplained income. The CIT (A) had estimated the income based on the deposits in the bank account, which was contested by the Revenue. The Tribunal decided to set aside the CIT (A)'s order and restore the matter to the AO for a fresh assessment, ensuring the assessee is given a fair opportunity to present his case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711483 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Assessment Year: 2018-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NISHANTH RAO B
• Assessee Lawyers: MANAS RANJAN NAYAK
• Keywords: Set aside; Opportunity of being heard

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “CUTTACK” BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JM AND SHRI RAJESH KUMAR, AM ITA No. 153/CTK/2025 (Assessment Year: 2018-19) Income Tax officer O/o The Income Tax officer, Jajpur Ward, Dala, Near Town Hall, Jajpur Road, Jajpur-755019 Odisha Vs. Tushar kanta Routray S/o Sarat Kumar Routray Dhanipur, markandapur, jajpur- 755007, Odisha, (Appellant) (Respondent) PAN No. AIIPR0400K Assessee by : Shri Manas Ranjan Nayak, AR Revenue by : Shri Nishanth Rao B, DR Date of hearing: 22.07.2025 Date of pronouncement: 22.07.2025 O R D E R PER PENCH: This is the appeal filed by the Revenue against the order of ld. CIT (A), NFAC, in appeal no. ITBA/NFAC/S/250/2024-25/1071677886(1) dated 30.12.2024 for A.Y. 2018-19. 02. Shri Manas Ranjan Nayak represented on behalf the assessee and Shri Nishanth Rao B, represented on behalf of the Revenue. 03. It was submitted by the ld. senior DR that the assessee has been non- co-operative before the AO and before the ld. CIT (A). It was the submission that there were substantial cash withdrawals from the current account of the assessee. The AO had treated the said amount as the unexplained income of the assessee by treating the credits in the bank account as unexplained. It was a submission that before the ld. CIT (A) also the assessee did not appear. But however, the ld. CIT (A) Printed from counselvise.com Page | 2 ITA No. 153/CTK/2025 Tushar kanta Routray; A.Y. 2018-19 estimated the income of the assessee at 8%. It was a submission that there was no provision for estimation. It was a prayer by the ld. Counsel for the assessee that the issue may be restored to the file of the AO for re-adjudication and the order of the ld. CIT (A) may be set aside. 04. In reply, the learned AR on behalf of the assessee submitted that the actual income of the assessee is only about 4 or 5 lakhs. It was fairly agreed that the assessee has not appeared before the ld. AO or ld. CIT (A). It was a prayer that the issues may be restored to the file of the AO and the assessee would cooperate in the set-aside proceedings. 05. We have considered the rival submissions. As it is noticed that the assessee has not appeared before the AO or the ld. CIT (A) and the ld. CIT (A) has treated the deposits in the bank account as the turnover of the assessee and estimated the income. We are of the view that the same is not permissible. In these circumstances, we set aside the order of the ld. CIT (A) and restore the issues to the file of the ld. AO for re- adjudication after granting the assessee adequate opportunity of being heard. Should the assessee not cooperate in the set-aside proceedings, liberty is granted to the AO to draw adverse inference. 06. In the result, appeal of the revenue is partly allowed for statistical purposes. Order pronounced in the open court on 22.07.2025. Sd/- Sd/- (RAJESH KUMAR) (GEORGE MATHAN) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Kolkata, Dated: 22.07.2025 Sudip Sarkar, Sr.PS Printed from counselvise.com Page | 3 ITA No. 153/CTK/2025 Tushar kanta Routray; A.Y. 2018-19 Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Cuttack Printed from counselvise.com "