INDRADEO YADAV,KANDI NAWADA V. INCOME TAX OFFICER, RAI KASHI NATH MORE

ITA 654/PAT/2024

AI Insights

The case involves Indradeo Yadav, who appealed against the orders of the AO and CIT(A) for the Assessment Year 2018-19. Initially, Yadav filed a return declaring an income of Rs. 9,45,900, which was later revised to Rs. 3,75,800. However, the AO added Rs. 19,00,000 and Rs. 47,00,000 to his income based on alleged financial transactions and cash deposits, respectively. The CIT(A) dismissed Yadav's appeal due to non-response. The Tribunal, considering the ex-parte nature of the previous orders and the principles of natural justice, set aside the earlier decisions and remanded the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 112218 (ITAT-PATNA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2025
• 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
• Keywords: Set aside; Revised return
• Section: 143(2); 44AD

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH: PATNA VIRTUAL HEARING AT KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member& Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 654/Pat/2024 Assessment Year: 2018-19 Indradeo Yadav (PAN: ABSPY 5810 H) Vs. ITO Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 26.03.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 16.04.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से None For the revenue / राजèव कȧ ओर से Sh. Ashwani Kr. Singal, JCIT ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against the order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 18.09.2024 for AY 2018-19. 2 I.T..A. No. 654/Pat/2024 Assessment Year: 2018-19 Indradeo Yadav 2. Brief facts of the case of the assessee is that the assessee filed return of income declaring total income at Rs. 9,45,900/-. The assessee has also filed revised return of income declaring total income at Rs. 3,75,800/-. The return of assessee was processed. The case was selected for scrutiny notice u/s 143(2) of the Act was issued. The assessee did not submit any reply, as a result of which, the AO added Rs. 19,00,000/- on the basis of information available on the records that the assessee has done financial transaction as sale in the property at Rs. 19,00,000/-, the AO has further made an addition of Rs. 47,00,000/- on the information that the assessee made cash deposit of the above sum and as such the total income of Rs. 69,75,800/-. 3. Aggrieved by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was no response on behalf of the assessee. Being aggrieved and dissatisfied the appeal has been preferred by the assessee before us. 4. None appeared on behalf of the assessee. 5. The Ld. D.R submitted that the order passed by the AO confirmed by the Ld. CIT(A) are an ex-parte order. The submission of Ld. D.R is that the assessee has got no interest, hence his prayer is to confirm the order passed by the Ld. CIT(A). 6. Upon hearing the submission of the Ld. D.R. we have perused the facts of the case mentioned in the order of AO as well as Ld. CIT(A) and further perused the grounds of appeal taken by the assessee in the memo of appeal. On perusal of the order of AO, it appears to us that there was no compliance on behalf of the assessee the order of AO passed in absence of the assessee. Before us, the Ld. CIT(A) also there was no compliance. Since there was no compliance on behalf of the assessee before the Ld. CIT(A). The Ld. CIT(A) has confirmed the order of AO. The Ld. CIT(A) has held that despite several opportunities granted, the assessee did not produce the relevant documents so adverse inference had to be drawn against the assessee. The assessee in its appeal has taken the grounds that the addition of Rs. 47,00,000/- and 19,00,000/- is 3 I.T..A. No. 654/Pat/2024 Assessment Year: 2018-19 Indradeo Yadav wrong and bad in law. Since Rs. 4,00,000/- is deposited by the assessee in demat account by cash is the amount of business transaction as well as commission of income and the assessee has filed return u/s 44AD of the Act. Since the order passed by both the authorities are ex-parte order. Interest of justice demands to restore the appeal of the assessee before the AO for fresh adjudication. The assessee is directed to co-operate in the proceedings. Accordingly, the order passed by AO confirmed by the Ld. CIT(A) is hereby set aside. The assessee has been given an opportunity to place his case before the AO. The AO is directed to pass a afresh order as per law without being prejudice to this order. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 16th April, 2025 Sd/- Sd/- (Rajesh Kumar /राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 16th April, 2025 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Indradeo Yadav, kandi Nawada, Bithosharif, Bihar-823003 2. Respondent – ITO 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Patna 5. DR, Patna Bench, Patna True Copy By Order Assistant Registrar /Sr. Private Secretary ITAT, Patna Bench, Patna "